Business Plans

21 November 2010 Categories: Gerry's Corner

   Recently I was asked for advice on completing a Business Plan for a new Business. I thought I’d share my answer in part with you. First of all developing a Business Plan is the most hated exercise next to an employment resume the difference being the resume records historical data rather than predicting the history yet to happen. That is the difficult part, to predict the future with so many variables. The importance of this necessary document is a working road map for yourself and a selling tool to be used when trying to attract investors to buy into your idea. The best advice I can give is you need 3 versions of your Business Plan. Wait, don’t panic, hear me out first. The 1st version is the worst case scenario. This Buisness Plan will list minimal revenue and maximum expenses. My Philosophy is, it will always take longer than expected and it will also cost more than you had planned. The 2nd version is best case scenario. This Plan has more Revenue than initially expected and expenses are as low as possible. The 3rd plan is the reality version. It is usually just above the worst case scenario. This becomes your real working document. If you exceed your revenue forecast then you are laughing all the way to the bank. If your expenses exceed your forecast then you need to make some quick adjustments and not let your numbers get worst than your worst case scenario. Otherwise you may have no choice but to close or stop the Business to re-strategize,

     Bottom line is the more planning you do up front, you reduce your chances of failing and disappointing yourself and more importantly losing your investments.

     Over the years I have helped many Business startups and today I coach Small Businesses ( 5 years plus ) that need assistance to fine tune their existing Business or want to grow it to the next level. A little personal secret, I have just started my 28th year of Self-Employment. I have worked more years on my own than having worked for the MAN. That is my personal claim to fame.