Video Professor

Ask anyone who’s started a business, and they will tell you that writing the business plan was amongst the most difficult things they did. You may have the greatest business idea since Al Gore thought of the Internet, but before your idea becomes reality, you need to write a business plan.

Take a walk through the business section of your favorite bookstore, and you’ll see dozens of books on the subject of writing a business plan — most proclaiming theirs is the only one you’ll ever need to write the “perfect” business plan. And while they’ll probably be of some help, the thing to remember is that what might be the perfect business plan for one start-up may not be the perfect business plan for another.

Too many people get hung up on following all the rules the experts have laid out. And while I’m sure no harm can be done following the rules, I question whether or not they’re all necessary. It seems like each expert on the subject proclaims something different and that their format and rules are the ones to follow. But having read the books and having written my fair share of business plans, I can tell you that each business plan is different. I’ve written lengthy, statistic heavy plans, and I’ve written five-page plans with hardly a number to be found. Both worked. Why? Because I knew my audience and because each plan clearly articulated what the business sought to accomplish and how it would be accomplished.

Reread that last sentence and remember it. If your business plan sticks to those simple guidelines, you’ll be fine. Sounds too simple to be true, doesn’t it?

Starting a business is hard enough, why complicate it anymore than you have to? The right business plan for your business depends on who your intended audience is and what type of business you are starting. Starting a process-heavy business that’s producing goods and requires outside investment to get started? Then you’ll need to paint a very detailed picture of how your business will operate, grow and profit. You’ll need to communicate that your idea is sound and the business model is viable. At the same time, if you’re starting a small home-based business or web site that doesn’t require outside investment, your business plan will probably be substantially shorter, though you’ll still need to provide data to back up your assumptions.

The key thing to remember is that with any business plan, you are using it as the foundation from which all other decisions and actions will be based. If your plan has holes in it, if it doesn’t articulate what your business’ goals are and how they’ll be reached, then it doesn’t matter how long or short it is.

Finally, many ideas sound great in theory. It’s only when the business plan is being written that one realizes the idea can’t support a business. And, in my opinion, there is no better way to test the strength of a business idea than by trying to write a well thought out, executable business plan.

Patrick C.