Why Your Business Plan Does Not Work and How You Can Write the an Effective One

There are many people asking me to help them to write business plans. Meanwhile, if you are planning to get financing to start small business, then business plans are mandatory. Yet most people that start a business do not want to utilize them. The reason of this is because business plans are made commonly to run business for the next five years or even more. Once the created business plans, it is very seldom that business owners move to look at the plans again. In this article, I will give you some tips how you can really utilize your business plan so that you can get maximum results.

1) It is important to check and review your business plan quarterly. It is made for you as a guide for your business and thus you need to update the content frequently. It is not intended to be created just as a static note. Evaluate things that are working properly and take out things that are not. Two of evaluation method, which are to define strategies that work and to identify the ones that do not work, are the most basic tools to improve the effectiveness of your business strategies.

2) Write the value as well as culture of your business into your business plan. This is not for financing purpose, but this one is to enhance working productivity within the business itself. State how many hours in a day you want to work in the business, and on the business. Define the schedule of your holiday, so that you will have life balance between family and our work. Again, this information may not be useful for financial institution like a bank or private lenders, but it is useful to increase personal value of your business. Soon you will see that you will need to have strategies to get more human resources to run the business, and design better systems for your business.

3) You need to be able to convert your business plan into action steps. As mentioned that your business plan is made for strategies for the next several years ahead. It represents the blueprint of your business. Thus you will need to convert long term goals into a short term strategies. Short term strategies should represent each of long term strategy and you should also incorporate resources that are needed to have these done. Usually short term plan is set within four to six months period of time. This concept works because your brain will not able to see the whole big picture that your long term goals stated. If you design it with several short term goals, then it is more measurable for your logic to achieve these.

From three I above points, I hope you have general picture on how to design a business plan that works on every business. Evaluate your business in certain period of time and have this adjusted to the real situation.