by Ted Saul

The traditional description of a business plan might read, “A document presented to potential backers with the desired result of securing capital for the startup of a business or service”.    But like so many matters in business, there are multiple uses for the plan.  Liken it to a road map that you might use on a vacation.  Before leaving, the map can be an overall guiding document of the trip showing locations to stop, your destination and how to get to them.  During the journey however this same road map becomes an operational guide to follow showing all the correct turns that lead to your goal.  Unfortunately during the course of the trip your map may become a document to review to help understand why you got lost and what it will take to get back on track.  A complete business plan works in a similar manner.

Usually written before a business launch, the plan is your guiding document that states your mission and how you will achieve success.  Checking it regularly provides direction for important decisions regarding opportunities that may come your way to ensure you are staying true to that mission.  Your values will also be defined making it clear what is important to you as the owner.   Sharing parts of the business plan with employees will allow them to understand and support your core values as well.

The well documented business plan also becomes an operational guide to identify when you need to implement projects such as product line changes, marketing strategies and financial decisions.  Goals should be clearly stated along with the objectives and tasks needed to accomplish them.  And just as looking at a road map will tell you if you are on schedule or driving too slow to meet your travel plans, a business plan will show how efficiently your company is running.

At times a business plan may have to become an assessment or audit of where your company is at.  It will be the benchmark for where you hope to be at future point in time.  If you haven’t met those goals, you will be able to determine why.   Comparing your plan to reality also demonstrates if you have stayed on track with what you had hoped to accomplish whether it was in the amount of sales, number of stores opened or the breadth of a product line.  The general direction of your business will also be evident by the demonstration of growth or decline.

What is great about a plan is that in case of deviation there is always a place to return and get back on track.   If you find yourself off course on your vacation, take out your map to figure out how to get back to where you hoped to be.  In the same manner, use your business plan to keep your business on target.