FocusMinded.com

Would you just hit the road with no idea where you’re going? Is it your standard operating procedure to get in the car without a destination? Of course not! Pilots likewise wouldn’t get in a plan and fly without a flight plan. So why would you start a business, let alone operate a business without a business plan? You wouldn’t, yet most web design professionals start out without a specific plan.

Flight Plans are not only good for pilots, but they are required. They contain basic and specific information about the trip. Included in it are details like: departure point, destination point, flight route, estimated flight time, backup landing points not to mention pilot and aircraft information. You see it contains everything needed for an at-a-glance look. This is exactly the kind of basic and detailed information your business plan should contain. So we are going to answer the following questions:

1. What is a Business Plan Really?
2. What’s The Purpose of a Business Plan?
3. What Types of Business Plans are There and Which One is Appropriate?
4. What Information Should Your Business Plan Contain?

What is a Business Plan Really?

Quite simply a business plan is a fluid, living and functional document. It is the solitary document a business should have that gives a road map of where they are, where they want to go and how they want to get there. It is important to remember that this is not a document that is engraved upon stone after complete. It should remain flexible to the ‘road construction’ that inevitably happens when on a trip. Just as a pilot wouldn’t think of going on a trip without filing a flight plan, neither should you think about driving your business without a plan. Not only is it a great introspective exercise, but it’ll help you in building a strong foundation and a successful company.

There are many different kinds of business plans one would consider drafting depending on the audience to whom it is for. I am not going to cover the details of writing a business plan for receiving loans, or for trying to sell a product, or anything like that. This article is going to cover what I feel is a workable business plan that should only take a few hours to complete your first draft. It won’t be a 50 page document, but more like a 1-3 page summary document with key points and highlights.

What’s The Purpose of a Business Plan?

When I look at the purpose behind a business plan; I see a future mindset, I see forward thinkers, I see planners, and I see people who care enough about their company to evaluate it. Even more than just creating a great document for you and your employees. This document should convey XYZ company in a nutshell. If you can hand this document to a stranger on the street it should tell them all they need to know about your business. We are going to cover that detail in a moment, but remember the purpose is to make sure YOU know WHAT your company is.

What Types of Business Plans are There and Which One is Appropriate?

There are two types of business plans as I see it that are applicable to web design companies. One is a more overall business plan and the other one is a more product related plan. The overall business plan is going to be applicable to every web design company in our industry. Whereas the more product related plan is geared more toward the consumable type products (web applications).

So which one is the most appropriate to your company? Without a doubt everyone should have an overall business plan. Some companies may have both and that is perfectly alright. They cover different aspects of the business. A product related plan is going to be very consumer oriented and contain things like market analysis, product comparison, competitor overviews, features, etc. While the business plan we are going to cover next is the most appropriate to start with.

What Information Should Your Business Plan Contain?

Your overall business plan should contain at a minimum the following:

• Who are you?
• What is your mission?
• What major goals or objectives you have?
• How do you plan to achieve them?

How many people are in your company, when was it founded, what is the history behind the company? Those are the things that you should put in the who you are section. Follow that up with your mission statement. Are you looking to grow a successful and profitable company (I’d hope so)? Then detail it, be specific and outline what your mission is.

Do you have any goals or objectives? Again, I would hope so. You should set goals or milestones for your company. Where do you want your business to be in the next 3 months, 6 months, 1 year. What do you want the company to look like in the future? List as many as you can think of, or set as many goals as you want. Next, tell yourself or anyone you’d like to read this exactly how you are going to get there. How exactly do you plan on making a profit? How do you think you are going to make $xx,xxx per month on average?

You see this process should be defining your flight plan. Where you are starting (who you are), what your aircraft is (your mission/foundation), what your destination is (your goals), and what your flight path/route is (how you are going to meet your goals). It really is that simple. Just don’t forget that this is a fluid, living, flexible, and functional document. It should be changed, updated, and modified. There was a very good movie about the Apollo 13 mission. In that movie there is a great line that goes something like, “well the flight plan just went out the window.” Sometimes you need to chuck it and wing it, and other times you need to stick by it. That is all part of the process.

Further Reading on Business Plans:

• Business Plan Series by Startup Spark
• The Business Plan: Not Just a Blueprint by About.com
• Business Plans according to Wikipedia

Subscribe to Focus Minded

Previously in this series: Dollars & Sense: Setting the Perfect Rates

Share This