I’m starting something new here on The Mogul Mom, inspired by Michael Martine’s “Open Discussion”.
Every Wednesday here on the blog, I’ll toss out a question related to our monthly topic and invite y’all to weigh in about it in the comments.
I think this’ll be a fun way for us to get to know each other better and to learn – or teach – something new about the subject we’re discussing.
So…for our first Weigh-In Wednesday, I’m wondering how you feel about business plans. Did you write one? Why or why not?
Head on down to the comments and weigh-in!
{ 26 comments… read them below or add one }
Had more of a sales/marketing plan initially, but now that I’m seeking funding to expand, I’m working on a formal business plan. I think it’s wise to have the business plan from the get-go. For me, it seemed like a daunting task.
Twitter: heathall
February 10, 2010 at 1:12 pm
Ros,
It DOES seem like a daunting task – that’s why I never wrote one either.
Have you heard of Jim Horan’s One Page Business Plan? You might check out the one for Creative Entrepreneurs or the new one for Women In Business.
Best!
Heather
I had absolutely zero business experience, and so I did everything that the books told me to do–including write a business plan. It took a really long time, and when I look back at it now, it makes me laugh because I didn’t know what I was doing! My business plan is definitely an evolving document.
Twitter: heathall
February 10, 2010 at 1:21 pm
Jen,
I had absolutely zero business experience either and that’s why I didn’t write one. LOL.
Thanks for weighing in!
Heather
Business plans should evolve as both the market and your end goals evolve. In my experience having some sort of written plan it important even for a small business. Not having a business plan is like taking a road trip with no map to destination.
Twitter: heathall
February 10, 2010 at 6:50 pm
You’re right, Karin. I guess I always felt that I have a good sense of direction and didn’t need that map. ;D (I was wrong – I absolutely should have written a business plan for 2 Virtues Inc.)
Heather
I would definitely recommend writing something down – even it is a few pages long. I had kept an idea notebook before I started my business, never knowing that I really would launch it. (I have an online store that sells safe, reusable lunch items and we fundraise in schools.) It was fun, I’d go to stores and write down the cool things I saw that I wanted to try and share with others. Then I had an opportunity to sell at my daughter’s school and started buying products. Only after 2 months of business did I write a 4 page business plan on the urging of a coach. It was worth it to have all of the ideas in one place and it also captures that moment in time. It also made it seem that I had a plan! (Even though I never imagined an online store – because I have never been good at shipping gifts on time!)
One year later, I’m using it as a start for a more complete business plan because I am looking for partners/investors/funding.
Twitter: heathall
February 10, 2010 at 6:49 pm
Thanks for sharing, Renata! Check out The One Page Business Plan for Women In Business – it’s supposed to make writing a business plan quick and easy.
Heather
I wrote my first business Plan with the help of my local SBA office. They offer free advice and classes. A very valuable resource for entrepenreurs first starting out. Since then I have updated and tweeked my business plan yearly on my own.
Twitter: heathall
February 10, 2010 at 7:08 pm
Doreen – I’d forgotten about that! Such a wonderful resource for entrepreneurs. Thank you for sharing!
Heather
I have not written a business plan though have been ‘meaning’ to. I have sat down a few times to do it but get a bit overwhelmed by it and put it away. I keep justifying it by saying it is in my head and I have the broad picture in mind. The little things just happen on a need basis to the bigger picture.
Hmmm that sounds very vague when I read back on it. I need to write one!
Working on one right now!
I was in a business coaching program last year through my Women’s Business Center and worked on a business plan for the first time (after being full-time in the business for 4 years!) I got probably 85% there. It’s definitely an important exercise but the urgent always seems to supersede the important when you’re wearing a million hats. I fantasize about taking a “corporate retreat” for a few days and finishing it to come back to the whole business being magically organized.
Having done some work on it though I have to say it does impact decision-making – reinforces saying no sometimes when something doesn’t fit in the plan. Definitely a moving target though!
I don’t know if you would call it a business plan as much as goals. I set a yearly goal for myself in a number of areas–book sales, speaking engagements, followers for my blog, seminars for speaker training–and then further condensed them into what I have to do each month to meet that goal.
I didn’t want it to be stifling, but I find it easier if I’m able to measure if my efforts are paying off. So far, I’m amazed that I’ve met my sales quotient! In other areas I’ve lagged, but that one has surpassed my goal.
Having the specific goals, though, does make me much more motivated to actually post everyday, and stay focused. And to me, that’s what’s important!
Visit To Love, Honor and Vacuum today!
I haven’t written one yet this year because I was waiting for the One Page Business Plan Company to come out with their book that is written soley for women in business. It’s out now and I’m about to get my copy. I really need one; especially since my business model totally changed this year! But to be honest, I have never written one in the past.
It wasn’t until recently and until I saw the post on your blog, Heather, that I wrote out a plan. I do a lot of note taking and idea jotting, but the one page plan helped me visualize what I want to do this year.
All the other plans I’d seen were incredibly daunting and confusing. I wasn’t looking for partners or investors so I never bothered, but the one page plan helps avoid that if you don’t need it.
If you or any of your readers have questions about the One Page Business Plan, just ask. I did my first one in 2000 It’s also a great plan to do BEFORE sitting down to do the longer plan, that I taught in colleges.
I agree it’s the visualization part of the business plan that helps you keep your focus. That said, we started out with one but our business evolved kind of more organically (i.e., we didn’t know what we were doing either, lol). Right now we know we’re growing when we keep gaining new accounts, new regions and introducing new products to the line. I think in about six months we need to revisit business plan writing and we’ll use the resources suggested here. Thx!
I agree that putting together a business plan for my travel business was a daunting task and it is certainly an evolving document. Look foward to finding out more about the One Page Business Plan mentioned as well!
I, too, have worked with the SBA recently. They help you formalize the entire plan (they make you do the work). If you’re looking for financial backing, it’s a must. Although, it is not scrutinized heavily, it does give merit to your business when banks are considering (esp. when you don’t have a ton of collateral). The formal approval from the SBA is grueling & time consuming (due to so many requests, stimulus money, etc.) but with their backing the banks are on-board, no problem. I actually found the market share, marketing portion of the business plan an awesome experience…research time, data pulling by local SBA office was very helpful information.
I’ve found that the business plan is a great starting point as you think about launching but it needs to be morphed into a marketing plan with an annual budget. Writing a the plan can be a helpful exercise if you don’t let it overwhelm you. You’ll be able to quantify opportunities and prioritize them based upon profitability. However, I’ve found that having an annual budget is more important to the health of the business than a 5 year business plan.
Great question! I was just wondering the same. I’ve written many business plans in my days, for many types of businesses. In my current business, I’m working on it now – but it’s always a living document! I find that when you’re just starting out (or writing one for the first time), it’s important to keep it pretty simple, and relevant! For us busy mamas, I think it’s also important to include a family component. (You can always omit that and ramp the plan up if you’re using it to go find funding, etc.) But a plan is no good if you never reference it again…it needs to work for you and your life. It doesn’t have to be overwhelming – it should work for you.
Yes, I wrote them for both businesses. The 1st business I started grew to $3m/yr–I updated the plan rigorously every year for the first 4 years and shared it with my staff. Less rigorously after that. I sold that company and recently started a new one. My biz plan for the new one is less rigorous. I do have a 1 page version that is pasted to my wall.
Biz plan pros:
+Documenting assumptions so I can reevaluate later based on reality–what have I learned?
+ Having some kind of plan–even if imperfect–helps me prioritize my activities and investments in as objective a manner as possible
+ Forces me to think strategically–instead of just operating in reactive mode all the time
Of course, these plans are not perfect. Forecasts are an educated guess at best. Marketing plans shift as new opportunities come up. But having a foundation, in my experience, does help.
Twitter: heathall
February 11, 2010 at 8:16 pm
Kathryn – I love what you said about operating in reactive mode all the time. It’s so true – and I think most mom entrepreneurs do that. Having a business plan helps us be more proactive or at least helps us get back on course after a wrench (and by wrench, I mean LIFE) in the plans.
Thanks for sharing!
Heather
Twitter: SarahBHawaii
February 12, 2010 at 3:10 am
I am excited to say…YES! BUT, only recently and its only one page. Writing one recently got me fired up again and helped me to remember the passion I had when I first thought of my product/business.
Twitter: heathall
February 12, 2010 at 1:51 pm
That’s awesome, Sarah!! I’m proud of you and glad your business plan renewed your zeal for you business. ;D
Heather