A business plan is not just for start-up businesses or those looking for a line of credit.
The good boss knows every well-established business is constantly taking risks in this modern economy. Specifically, businesses on a daily basis are risking market share, finances, and their reputation in the community and industry. Social media has made this even riskier, because the actions of an entry-level employee can have significant impact as bad news can travel in nanoseconds.
So what is a business plan? First of all, it is not an overwhelmingly large document that is a huge ordeal to manufacture. Who has the time for all that paperwork? The business plan I am referring to is the answer to some critical questions every business owner should be asking himself regularly. Structured thinking and decisiveness will be enough to set the direction of where to apply the sweat equity in the business to achieve maximum success.
A business plan can keep a business from wasting effort in spinning wheels and not making any progress. Without a plan, burnout happens for the business owner, which slows down the entire organization. A business can become over-extended by scope creep without the proper resources to fund all the projects that have been taken on when a business plan isn’t in place to guide growth and add structure.
We all know the pace of business today requires leaders to act quickly and be decisive; however, it doesn’t mean we have to take a ready, shoot, aim approach.