Under30CEO had an eye-opening interview with Australian business coach and trainer Bruce Doyle on Oct. 25 (“Why a Business Plan is More Important than You Think“).
Doyle’s owned and operated 27 businesses since 1977, all of them profitable. What’s the most important thing he’s learned about setting up and running a business?
Along the way there have been many key distinctions and things learned, but one which Bruce regards as the most important is Business Planning. (Emphasis ours)
“The most important thing about doing a business plan is becoming clear on what it (the business) will look like when it is finished. Most people don’t have an exit strategy.
“A lot of business owners don’t have clarity in where they are heading because they don’t know the end step. Included in the business plan should also be a succession plan, over 70% of businesses don’t have this.”
Business plans are also important to a business’s day-to-day operations.
“The main purpose is to have the business plan active and turn it into an action plan by breaking it down to 90-day cycles. Then chunk it down to weeks and then days,” Bruce explains.
What are the biggest mistakes that small business owners make when writing up their business plans? Doyle identifies two.
The biggest mistake is not taking the time to write their business plan in the detail necessary to build the foundation to grow from. It is absolutely catastrophic to go into business without a plan. Loss of money and failure will be evident unless the entrepreneur is very lucky.
The second biggest mistake is not conducting market research before launching their idea. Market research is critical and the more you can do it without getting analysis by paralysis the greater your level of success will be in business.
It is much easier to look for the void in the marketplace and provide a solution then it is to try and come up with a solution that is not relevant or existent.
Sierra Investment Group, Inc. is a small business plan writing service and small business funding resource. They can be reached toll-free at (800) 323-6298 from 8 a.m. to 4 p.m., Monday through Friday, or at firstname.lastname@example.org