what are the qualities of good business plan

10 Characteristics Of A Business Plan, its Functions, Features and Benefits

We explain what a business plan is, its functions, and the benefits it provides. Also, what are its features and methods it uses?

What is a business plan?

A business plan is a written document that expresses  a formal declaration of the objectives  of the initiatives that a company has in the projection and evaluation phase.

These initiatives  can be new projects within  the company's activities or the start of the company itself. Therefore, a business plan describes a series of interrelated activities aimed at achieving certain goals.

This allows a planning of the tasks and  the evaluation of the resources that will be necessary  to achieve those goals (for example, resorting to banks or investors for financing).

In addition, its function is to transmit to current or potential investors (investors, shareholders, financiers, etc.)  how the investment will be recovered and the guarantees  they have. It differs from an investment project in that a business plan is more focused on the strategies that will be carried out.

Characteristics of a business plan  :

Flexibility.

• It allows errors to be detected and difficulties to be anticipated before the start of the investment . In this way solutions can be planned.
• By including the economic and financial forecast of the business, it facilitates access to bank financing, as well as attracting new partners and collaborators.
• It allows the measurement of results of each stage, through short and medium-term goals that allow establishing measurement criteria.
• It allows detecting the most promising business opportunities in terms of markets of interest, products and services.
• It allows an evaluation of the company's situation in the context of its competitors, and the identification of tasks and areas that need improvement.
• It facilitates the rational use of resources, including personnel, since planning facilitates the assignment of responsibilities and coordinated work .
• Once the goals of the company have been established, it allows evaluating various strategies according to their effectiveness .
• Establishes the financial framework.

Executive Summary

After the cover and table of contents, the executive summary  gives an overall impression of the project  . For that, you must highlight the key data of the same and include all the relevant information .

Among this information  should not be missing the needs and objectives of the business  , the advantages offered by the product or service and the opportunity offered by the market, as well as the history of the company and its management team.

Most of this information will be expanded upon in the rest of the document.

Insertion in the market

The projected product or service must be described in detail and its possible insertion in the market explained. For that, it  is necessary to make a comparison with similar products or services  that already exist in the market.

The project arises to cover an existing need in the market, which is why potential consumers must be identified and  what advantages or weak points they will find  in the proposed product or service.

The relationship between the product and the market  must include a SWOT analysis  (strengths, opportunities, weaknesses, threats).

Market Characteristics

Once the market that will be the context of the business has been identified, said market is described in depth. This includes:

• Size, rate of growth and potential benefits offered.
• What segments does it include?
• Locate it geographically.
• Identify possible competitors, substitutes and complements.
• Define means of audience research.

It details  who makes up the management team  , but also the characteristics of the work team: how the company will be managed, the history of the personnel involved, the general experience of the company, the various areas of management, sales, stock control and quality.

Marketing plan

Promotional strategies are described,  taking into account "the four P's"  : product , price, advertising , points of sale.

Business system and schedule

All the necessary steps  are described from the manufacture of the product to the moment of purchase or completion of the service. It includes the areas of human resources , sales, commercial, management and organizational culture .

The schedule must specify  when each of the necessary steps will be activated  (hiring or relocation of personnel, start of production, purchase of raw material , etc.).

The accounting-financial area  allows detailing the structure and composition of social capital  , as well as calculating capital flows and valuing the investment.

Sources of income are analyzed and  a plan is created that determines how profits and losses will be managed . If it is a search for risk capital, what are exit alternatives for investors should be included?

The above content published at Collaborative Research Group is for informational and educational purposes only and has been developed by referring to reliable sources and recommendations from technology experts. We do not have any contact with official entities nor do we intend to replace the information that they emit.

Luke Wigman

Luke is passionate about fostering student involvement and connection. He studied psychology for his major and likes learning about the past. Luke aims to specialize in artificial intelligence and cybersecurity. .

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12 Key Elements of a Business Plan (Top Components Explained)

Starting and running a successful business requires proper planning and execution of effective business tactics and strategies .

You need to prepare many essential business documents when starting a business for maximum success; the business plan is one such document.

When creating a business, you want to achieve business objectives and financial goals like productivity, profitability, and business growth. You need an effective business plan to help you get to your desired business destination.

Even if you are already running a business, the proper understanding and review of the key elements of a business plan help you navigate potential crises and obstacles.

This article will teach you why the business document is at the core of any successful business and its key elements you can not avoid.

Let’s get started.

Why Are Business Plans Important?

Business plans are practical steps or guidelines that usually outline what companies need to do to reach their goals. They are essential documents for any business wanting to grow and thrive in a highly-competitive business environment .

1. Proves Your Business Viability

A business plan gives companies an idea of how viable they are and what actions they need to take to grow and reach their financial targets. With a well-written and clearly defined business plan, your business is better positioned to meet its goals.

2. Guides You Throughout the Business Cycle

A business plan is not just important at the start of a business. As a business owner, you must draw up a business plan to remain relevant throughout the business cycle .

During the starting phase of your business, a business plan helps bring your ideas into reality. A solid business plan can secure funding from lenders and investors.

After successfully setting up your business, the next phase is management. Your business plan still has a role to play in this phase, as it assists in communicating your business vision to employees and external partners.

Essentially, your business plan needs to be flexible enough to adapt to changes in the needs of your business.

3. Helps You Make Better Business Decisions

As a business owner, you are involved in an endless decision-making cycle. Your business plan helps you find answers to your most crucial business decisions.

A robust business plan helps you settle your major business components before you launch your product, such as your marketing and sales strategy and competitive advantage.

4. Eliminates Big Mistakes

Many small businesses fail within their first five years for several reasons: lack of financing, stiff competition, low market need, inadequate teams, and inefficient pricing strategy.

Creating an effective plan helps you eliminate these big mistakes that lead to businesses' decline. Every business plan element is crucial for helping you avoid potential mistakes before they happen.

5. Secures Financing and Attracts Top Talents

Having an effective plan increases your chances of securing business loans. One of the essential requirements many lenders ask for to grant your loan request is your business plan.

A business plan helps investors feel confident that your business can attract a significant return on investments ( ROI ).

You can attract and retain top-quality talents with a clear business plan. It inspires your employees and keeps them aligned to achieve your strategic business goals.

Key Elements of Business Plan

Starting and running a successful business requires well-laid actions and supporting documents that better position a company to achieve its business goals and maximize success.

A business plan is a written document with relevant information detailing business objectives and how it intends to achieve its goals.

With an effective business plan, investors, lenders, and potential partners understand your organizational structure and goals, usually around profitability, productivity, and growth.

Every successful business plan is made up of key components that help solidify the efficacy of the business plan in delivering on what it was created to do.

Here are some of the components of an effective business plan.

1. Executive Summary

One of the key elements of a business plan is the executive summary. Write the executive summary as part of the concluding topics in the business plan. Creating an executive summary with all the facts and information available is easier.

In the overall business plan document, the executive summary should be at the forefront of the business plan. It helps set the tone for readers on what to expect from the business plan.

A well-written executive summary includes all vital information about the organization's operations, making it easy for a reader to understand.

The key points that need to be acted upon are highlighted in the executive summary. They should be well spelled out to make decisions easy for the management team.

A good and compelling executive summary points out a company's mission statement and a brief description of its products and services.

An executive summary summarizes a business's expected value proposition to distinct customer segments. It highlights the other key elements to be discussed during the rest of the business plan.

Including your prior experiences as an entrepreneur is a good idea in drawing up an executive summary for your business. A brief but detailed explanation of why you decided to start the business in the first place is essential.

Adding your company's mission statement in your executive summary cannot be overemphasized. It creates a culture that defines how employees and all individuals associated with your company abide when carrying out its related processes and operations.

Your executive summary should be brief and detailed to catch readers' attention and encourage them to learn more about your company.

Components of an Executive Summary

Here are some of the information that makes up an executive summary:

• The name and location of your company
• Products and services offered by your company
• Mission and vision statements
• Success factors of your business plan

2. Business Description

Your business description needs to be exciting and captivating as it is the formal introduction a reader gets about your company.

What your company aims to provide, its products and services, goals and objectives, target audience , and potential customers it plans to serve need to be highlighted in your business description.

A company description helps point out notable qualities that make your company stand out from other businesses in the industry. It details its unique strengths and the competitive advantages that give it an edge to succeed over its direct and indirect competitors.

Spell out how your business aims to deliver on the particular needs and wants of identified customers in your company description, as well as the particular industry and target market of the particular focus of the company.

Include trends and significant competitors within your particular industry in your company description. Your business description should contain what sets your company apart from other businesses and provides it with the needed competitive advantage.

In essence, if there is any area in your business plan where you need to brag about your business, your company description provides that unique opportunity as readers look to get a high-level overview.

Components of a Business Description

Your business description needs to contain these categories of information.

• Business location
• The legal structure of your business
• Summary of your business’s short and long-term goals

3. Market Analysis

The market analysis section should be solely based on analytical research as it details trends particular to the market you want to penetrate.

Graphs, spreadsheets, and histograms are handy data and statistical tools you need to utilize in your market analysis. They make it easy to understand the relationship between your current ideas and the future goals you have for the business.

All details about the target customers you plan to sell products or services should be in the market analysis section. It helps readers with a helpful overview of the market.

In your market analysis, you provide the needed data and statistics about industry and market share, the identified strengths in your company description, and compare them against other businesses in the same industry.

The market analysis section aims to define your target audience and estimate how your product or service would fare with these identified audiences.

Market analysis helps visualize a target market by researching and identifying the primary target audience of your company and detailing steps and plans based on your audience location.

Obtaining this information through market research is essential as it helps shape how your business achieves its short-term and long-term goals.

Market Analysis Factors

Here are some of the factors to be included in your market analysis.

• The geographical location of your target market
• Needs of your target market and how your products and services can meet those needs
• Demographics of your target audience

Components of the Market Analysis Section

Here is some of the information to be included in your market analysis.

• Industry description and statistics
• Demographics and profile of target customers
• Marketing data for your products and services
• Detailed evaluation of your competitors

4. Marketing Plan

A marketing plan defines how your business aims to reach its target customers, generate sales leads, and, ultimately, make sales.

Promotion is at the center of any successful marketing plan. It is a series of steps to pitch a product or service to a larger audience to generate engagement. Note that the marketing strategy for a business should not be stagnant and must evolve depending on its outcome.

Include the budgetary requirement for successfully implementing your marketing plan in this section to make it easy for readers to measure your marketing plan's impact in terms of numbers.

The information to include in your marketing plan includes marketing and promotion strategies, pricing plans and strategies , and sales proposals. You need to include how you intend to get customers to return and make repeat purchases in your business plan.

5. Sales Strategy

Sales strategy defines how you intend to get your product or service to your target customers and works hand in hand with your business marketing strategy.

Your sales strategy approach should not be complex. Break it down into simple and understandable steps to promote your product or service to target customers.

Apart from the steps to promote your product or service, define the budget you need to implement your sales strategies and the number of sales reps needed to help the business assist in direct sales.

Your sales strategy should be specific on what you need and how you intend to deliver on your sales targets, where numbers are reflected to make it easier for readers to understand and relate better.

6. Competitive Analysis

Providing transparent and honest information, even with direct and indirect competitors, defines a good business plan. Provide the reader with a clear picture of your rank against major competitors.

Identifying your competitors' weaknesses and strengths is useful in drawing up a market analysis. It is one information investors look out for when assessing business plans.

The competitive analysis section clearly defines the notable differences between your company and your competitors as measured against their strengths and weaknesses.

This section should define the following:

• Your competitors' identified advantages in the market
• How do you plan to set up your company to challenge your competitors’ advantage and gain grounds from them?
• The standout qualities that distinguish you from other companies
• Potential bottlenecks you have identified that have plagued competitors in the same industry and how you intend to overcome these bottlenecks

In your business plan, you need to prove your industry knowledge to anyone who reads your business plan. The competitive analysis section is designed for that purpose.

7. Management and Organization

Management and organization are key components of a business plan. They define its structure and how it is positioned to run.

Whether you intend to run a sole proprietorship, general or limited partnership, or corporation, the legal structure of your business needs to be clearly defined in your business plan.

Use an organizational chart that illustrates the hierarchy of operations of your company and spells out separate departments and their roles and functions in this business plan section.

The management and organization section includes profiles of advisors, board of directors, and executive team members and their roles and responsibilities in guaranteeing the company's success.

Apparent factors that influence your company's corporate culture, such as human resources requirements and legal structure, should be well defined in the management and organization section.

Defining the business's chain of command if you are not a sole proprietor is necessary. It leaves room for little or no confusion about who is in charge or responsible during business operations.

This section provides relevant information on how the management team intends to help employees maximize their strengths and address their identified weaknesses to help all quarters improve for the business's success.

8. Products and Services

This business plan section describes what a company has to offer regarding products and services to the maximum benefit and satisfaction of its target market.

Boldly spell out pending patents or copyright products and intellectual property in this section alongside costs, expected sales revenue, research and development, and competitors' advantage as an overview.

At this stage of your business plan, the reader needs to know what your business plans to produce and sell and the benefits these products offer in meeting customers' needs.

The supply network of your business product, production costs, and how you intend to sell the products are crucial components of the products and services section.

Investors are always keen on this information to help them reach a balanced assessment of if investing in your business is risky or offer benefits to them.

You need to create a link in this section on how your products or services are designed to meet the market's needs and how you intend to keep those customers and carve out a market share for your company.

Repeat purchases are the backing that a successful business relies on and measure how much customers are into what your company is offering.

This section is more like an expansion of the executive summary section. You need to analyze each product or service under the business.

9. Operating Plan

An operations plan describes how you plan to carry out your business operations and processes.

The operating plan for your business should include:

• Information about how your company plans to carry out its operations.
• The base location from which your company intends to operate.
• The number of employees to be utilized and other information about your company's operations.
• Key business processes.

This section should highlight how your organization is set up to run. You can also introduce your company's management team in this section, alongside their skills, roles, and responsibilities in the company.

The best way to introduce the company team is by drawing up an organizational chart that effectively maps out an organization's rank and chain of command.

What should be spelled out to readers when they come across this business plan section is how the business plans to operate day-in and day-out successfully.

10. Financial Projections and Assumptions

Bringing your great business ideas into reality is why business plans are important. They help create a sustainable and viable business.

The financial section of your business plan offers significant value. A business uses a financial plan to solve all its financial concerns, which usually involves startup costs, labor expenses, financial projections, and funding and investor pitches.

All key assumptions about the business finances need to be listed alongside the business financial projection, and changes to be made on the assumptions side until it balances with the projection for the business.

The financial plan should also include how the business plans to generate income and the capital expenditure budgets that tend to eat into the budget to arrive at an accurate cash flow projection for the business.

Base your financial goals and expectations on extensive market research backed with relevant financial statements for the relevant period.

Examples of financial statements you can include in the financial projections and assumptions section of your business plan include:

• Projected income statements
• Cash flow statements
• Balance sheets
• Income statements

Revealing the financial goals and potentials of the business is what the financial projection and assumption section of your business plan is all about. It needs to be purely based on facts that can be measurable and attainable.

11. Request For Funding

The request for funding section focuses on the amount of money needed to set up your business and underlying plans for raising the money required. This section includes plans for utilizing the funds for your business's operational and manufacturing processes.

When seeking funding, a reasonable timeline is required alongside it. If the need arises for additional funding to complete other business-related projects, you are not left scampering and desperate for funds.

If you do not have the funds to start up your business, then you should devote a whole section of your business plan to explaining the amount of money you need and how you plan to utilize every penny of the funds. You need to explain it in detail for a future funding request.

When an investor picks up your business plan to analyze it, with all your plans for the funds well spelled out, they are motivated to invest as they have gotten a backing guarantee from your funding request section.

Include timelines and plans for how you intend to repay the loans received in your funding request section. This addition keeps investors assured that they could recoup their investment in the business.

12. Exhibits and Appendices

Exhibits and appendices comprise the final section of your business plan and contain all supporting documents for other sections of the business plan.

Some of the documents that comprise the exhibits and appendices section includes:

• Legal documents
• Licenses and permits
• Credit histories
• Customer lists

The choice of what additional document to include in your business plan to support your statements depends mainly on the intended audience of your business plan. Hence, it is better to play it safe and not leave anything out when drawing up the appendix and exhibit section.

Supporting documentation is particularly helpful when you need funding or support for your business. This section provides investors with a clearer understanding of the research that backs the claims made in your business plan.

There are key points to include in the appendix and exhibits section of your business plan.

• The management team and other stakeholders resume
• Marketing research
• Permits and relevant legal documents
• Financial documents

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Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

Top 10 Characteristics Of An Effective Business Plan

If you’re starting a new business, chances are you’ve already got a good idea of what you want your company to be. You know how it will make money and how you want to grow it. But there’s one thing that can make or break your company before it even takes off: the business plan.

A well-constructed business plan serves as a blueprint for your company and sets the stage for its success. It helps you organize your ideas, communicate them clearly to others, and get buy-in from investors or lenders.

A good business plan can also help you identify potential problems that might go unnoticed until it’s too late.

So what makes up an effective business plan? Here are some key characteristics of an effective business plan :

Characteristics Of Effective Business Plans

When writing a business plan, you need help knowing where to start. After all, many aspects of running a business need to be covered! But there are ten characteristics that every effective business plan should have.

1. It’s Comprehensive- Characteristics Of Effective Business Plans

When writing a business plan, especially if you’re a first-time entrepreneur, you may have to include every possible detail about your business. And while it’s vital to cover all the bases, it’s also important to remember that some things are better left out.

An effective business plan should be comprehensive without being overwhelming. A comprehensive business plan will cover everything from who you are and what you offer to how you measure and achieve success. It should also include a detailed list of the risks associated with your venture and how you will mitigate those risks.

To be successful in your business, you have to have all the information about your product or service and what makes it unique so that when someone asks about it, you can give them a concise answer without having to pause for thought or research their part.

2. It’s Detailed- Characteristics Of Effective Business Plans

Why is a detailed business plan so important? It’s simple: the more details you include, the easier it will be for you to decide about your business.

The more specific your plan is, the more likely you’ll have thought through all the various aspects of starting up a company and considered how each might impact your business.

A detailed plan lets you see the results of various courses of action. Whether those results are worth pursuing also helps you identify any weaknesses in your strategy . You may find out that one idea isn’t working for several reasons (or all of them!).

In addition, a detailed plan helps clarify what resources you need to make your business successful. When working on an outline or draft, it can be hard to know what information is relevant and what isn’t.

But once your plan is in its final form, it should be easy for anyone who reads it to understand. The plan should include information you need to know in launching your business.

3. It Has A Strong Executive Summary- Characteristics Of Effective Business Plans

The executive summary is the first thing readers see when they open your business plan. They’ll use it to decide whether or not they want to read further. If you need more information in your executive summary, a reader will likely skip over it and move on to another document.

The goal of an executive summary is to convince your audience that you’re qualified and capable of achieving the goals laid out in your business plan. You want them to understand why they should stick around and read more.

4. It’s Easy To Read- Characteristics Of Effective Business Plans

One of the essential characteristics of a good business plan is that it is easy to read but detailed. You should write a  business plan in a simple, easy way to understand. This allows the reader to grasp what information they need without wading through text reams.

However, it’s also crucial that the business plan contains enough detail so that readers know what they are getting into if they decide to invest in your company.

If your business plan is too short on details, it can give off a “shady” vibe, and investors will avoid investing with you. On the other hand, if your business plan contains too much information, it may overwhelm potential investors and scare them away.

5. It’s A Good Fit For The Company’s Needs- Characteristics Of Effective Business Plans

Every company is different, and every business should tailor every plan to the company’s specific needs. How can you expect your business plan to address those needs if you need to know them? This characteristic is needed because it’s crucial to ensure that the business plan fits the company’s needs.

A good business plan helps a company achieve its goals and make money, but if it doesn’t work with the company’s needs, then it can be counterproductive.

For example, suppose a company has big dreams of expanding and hiring new employees to grow. Still, its business plan is focused on cutting costs and reducing expenses instead of increasing revenue. In that case, it won’t achieve its goals.

6. It’s Visually Appealing- Characteristics Of Effective Business Plans

Regarding business plans, visuals can make or break your pitch. If you take the time to create a comprehensive and well-thought-out plan, don’t you want it to be appealing?

First, remember that graphics aren’t just for decoration. The graphics are there to help people understand what they’re reading.

For example, if you’re discussing how an employee training program will work, use pictures of people at their desks doing different activities. If your plan involves a new product launch, show how the product looks next to its competition.

Another thing to remember is that visual appeal isn’t just about images. It can also mean using colors strategically. If you’re trying to convey confidence in your company’s ability to handle risk-taking, try using a blue color instead of a dull gray one when discussing the subject matter!

Your business plan should be easy on the eyes with classic formatting, simple fonts, and a clean layout. If you’re using Word or Google Docs, consider using a template that shows this format in its best light.

If you’re trying to impress investors or lenders, try hiring a designer to help with your presentation. It makes all the difference!

7. It Includes An Action Plan With Milestones And Metrics- Characteristics Of Effective Business Plans

The best business plans include an action plan with milestones and metrics, which helps you stay on track and allows you to measure your progress.

Including an action plan with milestones and metrics in your business plan will help you achieve your goals . It’s easy to get distracted or lose focus on what matters most, but if you have a clear idea of what needs to be done and when then it’s easy to keep moving forward.

It also helps keep you accountable. You can’t just write down something like “I’ll implement my social media strategy” and not do it! You’re forced to think about how long it takes for people to see the effects of their actions, which makes them more likely to stick with them over time.

8. It’s Flexible- Characteristics Of Effective Business Plans

When you’re writing your business plan, it’s important to remember that things change. You won’t be able to predict everything that will happen to your business, and you’ll need to be flexible enough to keep up with the unexpected.

A good plan can adapt and adjust as new information comes in. If you’re starting a new business, there are many things that you will need help to anticipate or predict. You must update your plan as you learn more about the market or discover what works best for your company.

9. It Considers Current Trends In The Industry

When you’re writing your business plan, it’s important to consider current trends in the industry. This will help you avoid catching up in what worked last year and missing out on new opportunities that could make your business more successful.

Taking stock of current trends will also help you stay aware of what other companies are doing and how they’re doing it. You don’t want to reinvent the wheel.

You want to ensure that you’re allocating your resources in a way that has proven effective for other businesses. That means paying attention to what’s happening outside your own four walls.

10. It Sets Smart Goals (Specific, Measurable, Achievable/Actionable, Realistic/Relevant, And Time-Bound)- Characteristics Of Effective Business Plans

Smart goals are a crucial part of the business plan if you need to set SMART goals to be able to achieve your goals effectively.

Smart goals are specific. They are clear and concise, so everyone on your team knows what goals they are working to reach.

Smart goals are measurable. You can’t achieve something if you have a way of measuring it! You need to know how much progress you’ve made and where to go to achieve your goal.

Smart goals are achievable/actionable. If you can’t achieve the goal, it’s not worth setting. This is why setting realistic, attainable goals is essential to help move your business forward rather than just dreaming big!

Smart goals are realistic/relevant, and time-bound. They are realistic within your context (that means no crazy stuff), relevant (it has value), and have a timeline attached so everyone knows when to get things done!

Why Effective Business Plans Are Essential?

If you’re starting a business, an effective business plan is essential to ensure your venture is successful. Here are some reasons why it’s crucial to have a strong business plan:

1. Business Plan Helps You To Focus On What You’re Trying To Achieve- Why Effective Business Plans Are Essential

A business plan helps you to focus on what you’re trying to achieve. With a business plan, tracking your goals and ensuring that the things you’re working on are helping you get it is easier.

A business plan helps you do this by setting out what your company will do, how it will do it, and why it’s essential. It also enables you to prioritize. You can look at your overall vision for the company and decide if certain parts of your plan are more important than others at any given time.

Plus, a business plan doesn’t just help you focus on the future. It also allows you to review past progress and identify areas where things went wrong so they don’t happen again!

2. Business Plan Helps You To Identify Your Goals And Priorities- Why Effective Business Plans Are Essential

Finding the time to plan for the future is challenging when you’re running a business, especially if you’re just starting. But if you need to take the time to identify your goals and priorities, avoid finding yourself with no direction and no way of deciding what’s important.

A business plan will help you set concrete goals for both short-term and long-term success. It also helps keep things in perspective when things don’t go as planned (and rarely do).

If you set out a detailed business plan, you’ll know what steps to take next and what resources are needed for future growth. This will make it easier for you to decide how best to proceed with specific projects or activities within your company.

3. Business Plan Helps You To Identify Strengths, Weaknesses, Opportunities, And Threats- Why Effective Business Plans Are Essential

Business plans are essential for any business to grow and succeed. To build a successful business, you must clearly understand your company’s strengths, weaknesses, opportunities, and threats (SWOT). You can find out these critical factors by creating an effective business plan.

A good business plan will help you identify your SWOT. In other words, it will help you know your strengths and weaknesses and the opportunities that could be available in your target market or industry. This will help you determine what products or services you should offer potential customers.

Once you know these crucial factors, you can take action and make necessary changes to improve upon them. For example, if one weakness is too many competitors in the industry, then maybe it’s time for you to change something to make your company stand out.

You can do this by developing new ways of doing things or even launching new products/services so customers will notice their products/services more than their competitors.

4. Business Plan Helps You Ensure You Have The Resources Needed For Success- Why Effective Business Plans Are Essential

 A well-written plan will show investors and other stakeholders that you have thought through starting your business and planned for its growth. It will also show them that you are serious about making this business succeed, which can help them feel more confident in investing in your company.

When your business plan includes a budget, it will be easier to know how much money you need to start up and maintain your business. A well-written plan will also help you identify what resources your business needs, such as staff members or equipment. You can then use this information to determine if a lack of resources will be an issue that could prevent success.

Moreover, a well-written business plan can help you determine whether or not you have the resources needed for success. For example, if you don’t have enough capital to cover unexpected costs, such as paying employees during slow times or replacing equipment when it breaks, then perhaps this isn’t the right time for you to start a new business venture.

Additionally, a well-written business plan allows you to get feedback from professionals who can help improve it before presenting it to people interested in funding or investing in your company.

This ensures that all areas of your plan are covered, and there are no gaps or missing information that could cause issues later on down the road when things start getting more serious with investors and lenders.

5. Business Plan Helps You To Make Decisions Based On Data Rather Than Guesswork Or Intuition Alone- Why Effective Business Plans Are Essential

Business plans are essential because they help you make better decisions. If you’re a small business owner, you’ve probably experienced the frustration of needing more information to decide.

You may have had to go with your gut (or maybe even your best guess) when making a decision that could significantly impact your company’s future.

This is why it’s crucial to have an effective business plan before making significant changes or decisions . For example, if you have a hunch that your product will sell well in the northeast but haven’t sold anything there yet, your business plan can help you decide whether or not to expand into that region.

If you need to decide whether to offer free shipping on all orders over $50 or just those over $100, then again, a business plan can help you decide which strategy is best for your company’s bottom line.

A good business plan will give you all the information you need to make informed decisions about your company’s direction, finances, and operations. A good business plan will also help you avoid mistakes, such as hiring someone who isn’t a good fit for their role or spending money on something that benefits the company less than expected.

6. Business Plan Allows You To Make Informed Decisions Confidently- Why Effective Business Plans Are Essential

You will make better decisions if you have a business plan in place. Indeed, you can’t see into the future, but having a clear plan for what you want to achieve and how you plan to get there allows you to make educated guesses about which decisions are likely to lead to success.

When you’re in the thick of things, it’s simple to become distracted by new opportunities and lose sight of the bigger picture, but having a distinct vision of what success looks like helps keep everything on track.

An effective business plan lets you know exactly where your company is headed and how it will get there. You’ll be able to confidently make decisions that they’re the best possible way forward for your company.

The best part about this is that once you’ve created a solid business plan and have an idea of your goals, it will be easy for you (and anyone working on the project) to know what needs to be done next.

7. It Gives Investors A Clear Understanding Of What They Are Investing In- Why Effective Business Plans Are Essential

One of the most important reasons why is an effective business plan essential is because it gives investors a clear understanding of what they are investing in. When you have a strong business plan, you can use it to attract funding from investors and banks.

Investors want to know that their money is going towards something worthwhile and not just being thrown away on some terrible idea. If you don’t do this, you may find yourself with investors and enough funding to continue operating the company.

A good business plan will also help you when you apply for bank loans. Banks want to see that you have a solid plan for how your business will operate and understand how much money it will take to start and keep running. A strong business plan can help convince them that you are serious about starting your own company and making it work.

Additionally, a business plan also serves as a road map for employees who are new to a company or project. It helps them understand where their efforts fit into the overall picture and guides their expectations.

This helps employees work more efficiently because they don’t have to guess their role in the company; they know what’s expected of them, when they should expect it, and how much time will be invested in each task or goal.

What Happens When A Business Doesn’t Have An Effective Business Plan? 

As we all know, a business plan is a document that outlines all of the most critical aspects of your business. This includes the goals and objectives you hope to accomplish, the strategies you’ll use to achieve those goals and a plan for what happens if things don’t go according to plan.

It’s essentially a road map for your company and one of the most critical tools in your arsenal to ensure that all aspects of your business function effectively.

But what happens when a business doesn’t have an effective business plan? Unfortunately, it can mean some big problems down the line.

1. A Business Without An Effective Business Plan Will Not Be Able To Grow As Fast As It Wants To

 A business that does not have a business plan will not be able to determine where it wants to go and how to get there. They will need help deciding on their goals and how to achieve them.

A business without an effective plan will simply have goals but no way of achieving them. This means they will not be able to grow as fast as they want because they will need to learn how to achieve those goals or what steps to take to reach them.

2. A Business Without An Effective Business Plan Will Struggle To Attract Investors And Customers

The first thing that will happen when a business needs an effective plan is struggling to attract investors and customers. A clear, well-defined strategy for growing your company is vital for getting new clients on board and attracting investors who can help you scale up your operations. Investors want to see that you know what you’re doing. That there is a plan in place so they can feel confident that their money is going toward something worthwhile.

3. A Business Without An Effective Business Plan Will Not Be Able To Compete With Other Companies In Its Industry

It’s no secret that the business world is competitive. If you will be in it, you must know what you’re getting into and be prepared to compete with other businesses.

With a plan, your business will be able to compete and also struggle to survive.

A business with an effective plan will likely make better decisions about allocating resources, leading to wasted money and time on projects that ultimately fail.

Without a plan, you will not know what equipment or staff members you need and where they should be located within your company. Your company may end up short on employees at one point or another during its lifespan. When this happens, it can cause severe problems for your bottom line.

With an effective business plan, you’ll be able to determine how much revenue each operating unit generates and ensure that these units are profitable enough to continue operating without any additional investment from ownership or outside sources.

4. A Business Without An Effective Business Plan Will Struggle To Get The Attention Of Potential Employees

When a business has an effective business plan, the company will be able to get the attention of potential employees. Why? Because without a well-thought-out plan, it’s easier to show potential employees how they would fit into your organization and their roles.

It’s also easier to convince potential employees that they should take a chance to join your team if you have a solid plan for how you want your company to grow and evolve.

If someone is considering making a career move and looking for their next opportunity, they need to know that there’s more than just “hiring” going on here. They need to know that there is a future for them with your organization beyond just this one job.

5. A Business Without An Effective Business Plan Will Struggle To Set Realistic Goals For Itself

When a business has an effective business plan, it can set realistic goals. There is a clear vision of where it wants to go and how it will get there. When businesses have an effective business plan, they will also know what resources they need to succeed and how much time and money it needs to reach their goals.

This is why so many businesses fail. They set unrealistic goals for themselves and need more resources or time to achieve them. If you want your business to succeed, create an effective business plan outlining what you want from your company and how you will get there!

6. A Business Without An Effective Business Plan Will Have Difficulty Staying Focused On Its Core Competencies As A Company

A business must have an effective business plan to stay focused on its core competencies as a company. A business plan provides a blueprint for the overall direction of your company, and it helps you stay focused on what’s important. The more you can focus on your strengths and weaknesses, the more likely you will succeed.

A company’s mission statement clearly defines its goals and objectives. With this information, employees may feel confident about what they need to do for the company to grow. This confusion can lead them down the wrong path or result in poor decision-making processes that might cause harm to the organization.

Frequently Asked Questions- Effective Business Plan

What are some common mistakes people make when creating a business plan.

There are a lot of mistakes you can make when you’re creating a business plan.

A big one needs to understand your audience. If you’re writing your plan for investors or lenders, they need to see that you’ve done the research and have thought things through. However, if you’re writing it for yourself or your team, they don’t need to see some details. They just want to know what needs to happen next.

Moreover, another common mistake people make when creating a business plan is not thinking about their vision for the company and how it will grow.

They spend so much time worrying about how they will get started or what they will do with the profits from their first year in business. But you might get stuck as an entrepreneur if you don’t know where your company will go.

Another mistake is to be honest about what can go wrong and what will go wrong. You should be able to anticipate problems, but it’s important to remember that no matter how much planning you do, there will always be unexpected challenges.

It’s better to acknowledge this upfront before anyone gets too far down the road than try to deal with it later when everyone’s feeling frustrated and stressed out by their lack of foresight.

How Often Should I Update My Business Plan?

Every year or once a year, you should update your business plan. It’s a good idea to keep a file of all the updates and changes you’ve made to the program over time, so if you ever want to go back and see when something was added or changed, it’s easy to find.

You may also want to print out an updated copy every year to reflect on your goals at that time.

If your business plan is outdated, the business owner may need the correct information to make good decisions. An out-of-date business plan can make it difficult for you to get funding from banks and other lenders.

Where Can I Get Help Creating A Business Plan For My Business?

Here are some tips on where to get help creating a business plan for your business:

1. Consult an expert: There are many people out there who specialize in helping entrepreneurs write their business plans, as well as people who can assist with other aspects of starting up a new company. An excellent place to start is by asking for recommendations for someone who has worked with other entrepreneurs like yourself.

2. Go online: Many websites offer tools, templates, and business plan advice. If you want help from someone who knows what they’re doing but doesn’t have time to consult them directly, this is a great option to save time and money!

3. Attend workshops: Many conferences hold workshops specifically designed for those interested in starting their businesses. These can be excellent opportunities for learning more about what goes into writing a business plan and getting some hands-on experience before diving headfirst into the process.

4. Ask others: If you still need to figure out what goes into a business plan, ask someone with experience writing one! They can give you some ideas on how to get started and offer advice on how best to approach the task at hand.

Top 10 Characteristics Of An Effective Business Plan – Conclusion

An effective business plan must be clear, concise, and well-organized. Once you have a clear vision of what you want to achieve and what you need to do to get there, it is time to get down to the nitty-gritty of your business plan.

Let’s start by writing down all the significant points in one place, making them easy to find. Then, create an outline based on those points. You should also review your plan and ensure it is free of spelling or grammatical mistakes. Finally, remember that your business plan is a living document. It will change as your business changes and grows over time!

Top 10 Characteristics Of An Effective Business Plan – Recommended Reading

Strategic Pillars: What Are They, Why They Matter

116 Strategic Questions to Ask Senior Leaders – With Sample Answers

Strategic Planning- Definition, Steps, Examples, And Tips

Updated: 12/18/2023

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New to business planning? Start here

What should i include in my business plan.

You must have an executive summary, product/service description, market and competitive analysis, marketing and sales plan, operations overview, milestones, company overview, financial plan, and appendix.

Why should I write a business plan?

Businesses that write a business plan typically grow 30% faster because it helps them minimize risk, establish important milestones, track progress, and make more confident decisions.

What are the qualities of a good business plan?

A good business plan uses clear language, shows realistic goals, fits the needs of your business, and highlights any assumptions you’re making.

How long should my business plan be?

There is no target length for a business plan. It should be as long as you need it to be. A good rule of thumb is to go as short as possible, without missing any crucial information. You can always expand your business plan later.

How do I write a simple business plan?

Use a one-page business plan format to create a simple business plan. It includes all of the critical sections of a traditional business plan but can be completed in as little as 30 minutes.

What should I do before writing a business plan?

If you do anything before writing—figure out why you’re writing a business plan. You’ll save time and create a far more useful plan.

What is the first step in writing a business plan?

The first thing you’ll do when writing a business plan is describe the problem you’re solving and what your solution is.

What is the biggest mistake I can make when writing a business plan?

The worst thing you can do is not plan at all. You’ll miss potential issues and opportunities and struggle to make strategic decisions.

Business planning guides

Learn what a business plan is, why you need one, when to write it, and the fundamental elements that make it a unique tool for business success.

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Business planning FAQ

What is business planning?

Business planning is the act of sitting down to establish goals, strategies, and actions you intend to take to successfully start, manage, and grow a business.

What are the 7 steps of a business plan?

The seven steps to write a business plan include:

• Craft a brief executive summary
• Describe your products and services
• Conduct market research and compile data into a market analysis
• Describe your marketing and sales strategy
• Outline your organizational structure and management team
• Develop financial projections for sales, revenue, and cash flow
• Add additional documents to your appendix

What should a business plan include?

A traditional business plan should include:

• An executive summary
• Description of your products and services
• Market analysis
• Competitive analysis
• Marketing and sales plan
• Overview of business operations
• Milestones and metrics
• Description of your organization and management team
• Financial plan and forecasts

Do you really need a business plan?

You are more likely to start and grow into a successful business if you write a business plan.

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

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8 Elements of a Successful Business Plan

Perhaps you’ve heard the old saying that failing to plan is the same as planning to fail.

It’s commonly attributed to Benjamin Franklin, the 18th century inventor and politician whose belief in the value of preparation was strong enough that he once made a list of more than 12 character traits around which he planned to structure his life.

Related:   It Only Takes 6 Steps to Plan Your Success

Franklin’s preparation paid off. Today, he’s remembered not only for signing the Declaration of Independence but for researching electricity, serving as the U.S. ambassador to France and founding the University of Pennsylvania.

Accomplishments like those illustrate the importance of preparation for entrepreneurs starting or expanding their own businesses, especially since only half of all startups survive their first five years. The secret: A well-crafted business plan can help make yours one of the success stories .

Not only is having one often a prerequisite for lenders and investors, it’s a road map that helps owners identify both risks and opportunities in their markets so that they’re prepared for both.

Indeed, some of the most successful U.S. entrepreneurs were known for their careful strategy. John D. Rockefeller, the oil magnate whose name became a byword for wealth in the late 19th and early 20th centuries, often talked about “our plan” when he was developing Standard Oil Trust.

Rockefeller’s strategy was corralling what had been a haphazard oil supply that often outpaced demand and hurt producers by keeping prices low. His business expanded enough that it eventually controlled the majority of oil production in the U.S. Although it was later broken up by the U.S. government, its descendants—ExxonMobil, Chevron and ConocoPhillips—still dominate the industry today.

“Business planning helps entrepreneurs work smarter, stay alert for roadblocks, test new ideas, stay motivated, help align expectations with stakeholders and investors, and even reduce stress.”

“Business planning helps entrepreneurs work smarter, stay alert for roadblocks, test new ideas, stay motivated , help align expectations with stakeholders and investors, and even reduce stress,” wrote Robert Price, executive director of the Global Entrepreneurship Institute, in an article on the organization’s website.

“Writing a business plan forces you into disciplined thinking if you do an intellectually honest job,” he says. “An idea may sound great in your mind, but when you put down the details and numbers, it may fall apart.”

Related: Think Big, Start Small and Plan for Success

A further advantage of your roadmap is that, ideally, it changes with your business. It’s considered a living document, but despite its adaptability, there are basic elements the Small Business Administration says any plan should contain. They include:

1. Executive Summary:

A snapshot of your plan. This will be the last thing you write, but possibly the most important, since many readers will stop here if they’re unimpressed. If your company is a startup , focus on your background and experience as well as that of any partners to show the underpinnings of the company, the agency says. If you’re better established, make sure to include details such as when the business was started, the names of the founders and their roles, how many employees you have, and where your operations are situated.

2. Company Description:

Explain what your company does and how it stands out from competitors. List major customers as well as markets you plan to target in the future. You’ll want to include competitive advantages, such as expert personnel like the whiz-kid coder you just hired, or location: Perhaps your floral shop is next door to an all-night wedding chapel.

3. Market Analysis:

It’s crucial to understand the market you plan to enter. Find out who your competitors are, analyze their cash flow and profit margins, and research technological developments in the industry that might be game-changers. Part of describing your customers is a general awareness of how much they spend and when. For instance, Black Friday got its name because it kicks off the lucrative Christmas shopping season that moves many retailers into full-year profitability. If your business is grappling with a similar challenge, you’ll want to be sure you have the resources and cash flow to withstand operating at a loss for 11 months out of the year.

4. Organization and Management:

Spell out the details of ownership, including investors and show your organizational chart. Specify whether your business is a sole proprietorship, partnership or corporation, and if it’s the latter, what type.

5. Service or Product Line:

What do you sell, how will it help your customers, and how often will they need to replace it? The answers to those questions can be crucial factors in business sustainability . Include any patents or copyrights you own.

6. Marketing and Sales:

The best idea in the world won’t take off if you don’t let your potential customers know what you have. Are you going to rely on word of mouth, promotional discounts or advertising? Remember, your method will have to be tailored to your market. New York businesses are famous for paying people to stand on the sidewalk promoting everything from discounted pizza slices to bargain jewelry prices, but that doesn’t work nearly as well in cities without a high volume of foot traffic.

7. Funding Request:

You’ll want to include how much you need right now as well as how much more you might need over the next five years. A critical point is how you plan to repay borrowed money to creditors (if you opt for debt financing) or, alternatively, generate returns for investors. Both will want to know how you’re spending their money and when they’ll see a payoff.

8. Financial Projections:

If you need funding, provide realistic forecasts that show how you plan to generate future cash flow. Unless you’re borrowing from your parents, your funding sources will want to know. It’s easier if you can show recent financial statements and base your projections on those, since that will give lenders an idea of how realistic your numbers are.

Related: 11 Things That Can Spark Massive Success in Your Life

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8 Qualities of a Good Business Plan

By katie cline.

One of the first things we ask each new client is whether they have an up-to-date business plan. This puzzles some people. “What does my business plan have to do with redoing my website, or getting more leads?” More than you might think.

Many owners think of a business plan as a complex document that’s really only necessary if you are approaching a bank or investors for money. While business plans are certainly used to obtain funding, their main purpose is to document what your business is, what you plan to do, and how you plan to do it so that all of the members of your company are operating within the same framework. 

“ The main purpose of your business plan is to document what your business is, what you plan to do, and how you plan to do it. “

Creating this clarity can increase your likelihood of success. A study in Harvard Business Review found startups who wrote formal plans were 16% more likely to achieve viability than the otherwise identical non-planning entrepreneurs.

Writing a business plan can be done with as much or as little formality as you need for your company. A good business plan doesn’t need to be a 50+ page formal document to do its job. Regardless of length, we have found in our experience working with startups, small businesses, and enterprises, that there are eight things that all good business plans accomplish.

What does a good business plan do?

Define your goals.

What is your business setting out to achieve? 

From your overarching mission statement, to your top priorities for the next five years, your business plan should document these with as much specificity as possible. This includes defining what metrics you will use to measure these goals. Doing this allows you to align everyone in your company around clear initiatives.

Create a business roadmap

Once you have defined your goals, your business plan should spell out how you intend to get to these milestones. Say your goal is to increase your annual revenue by $5 million in the next 5 years. How are you going to grow your revenue to this level? Are you going to introduce a new service or distribution channel to get there? What operational support will that entail? Do you have the team members you need to achieve this goal? These are the types of questions we seek to answer when crafting a business plan.

Document assumptions about your business for consensus and revision

By recording your assumptions as you build your business plan, you can determine where your team operates on a shared understanding and where more clarity and consensus are needed. 

This also gives you the opportunity to periodically check which of your assumptions are still valid. Did your revenue projections assume that your sales reps would be able to achieve a 25% win-rate, but the real rate has consistently proven to be around 15%? Then you know where your plan needs to be adjusted as you gain more accurate data.

Set expectations for how you want your company to operate

The level of detail you include in your business plan about your company’s operations can start simple and increase over time as you identify and define processes that are crucial to your business. But even when you’re just starting out, it is helpful to document what is important to how your business operates. What are the values that guide what you do and how you do it? The more clearly this is defined, the easier it will be for your team members to operate according to your expectations without constant oversight or discussion.

Establish awareness of the competitive environment

Your business doesn’t operate in a bubble. In order to be successful, your plan needs to address where your firm fits into the marketplace and what opportunities and threats exist. While we often do a lot of competitive research, we find that a SWOT analysis is a helpful way to quickly communicate your company’s position within the competitive environment to everyone on the team.

“ Your plan needs to address where your firm fits into the marketplace and what opportunities and threats exist. “

Allow for ongoing accountability

By documenting your goals, your roadmap for achieving them, and the metrics you will use to measure your progress, your business plan becomes a tool for ongoing accountability. As you define the key metrics for each goal in your business plan, make sure that you have the tools and systems in place to measure this data. If not, determine what you need in place to measure your performance according to your plan. 

You should revisit your business plan regularly (at least once a year, but ideally once a quarter) to track your progress and to make adjustments as needed.

Make you think about all aspects of your business

By outlining your assumptions for all areas of your company (product/services, operations, sales & marketing, staffing, management, and finance) your business plan ensures that you think about all of them and how they align. It’s easy for a leader to get focused on one particular area, either because it is the top priority or because it’s their area of expertise, and forget how the other areas are needed to support this. 

For companies just starting out with one or two people, it’s easy to think that you don’t have much to document about staffing and management. But if your goal is to grow the company beyond what the founders alone are able to support, then you need to think about what milestones will prompt you to start hiring and which roles you will prioritize first to support your goals.

Set the foundation for your marketing and sales strategies and tactics

Strategic marketing isn’t possible if you don’t have your business goals and overall strategy in place. We often see marketing and sales tactics used in an effort to paper over business problems, such as not having clearly defined services or not having a clear target market.

Your Strategic Marketing Plan is an extension of your business plan. Taking a business-first approach to marketing and sales planning sets you up for greater success and less wasted effort.

“ Strategic marketing isn’t possible if you don’t have your business goals and overall strategy in place. “

If you already have a business plan, look it over to see if it is doing everything listed above. 

If you don’t have a business plan, now is the perfect time to start one! 

We have put together a handy checklist to help you optimize your business plan or write one for the first time. You can download it here .

Of course, if you would rather have someone else work on your business plan, we are happy to help! We can review your existing business plan or write one from scratch. Visit our business planning page for more details.

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6 Qualities of a Good Business Plan in 2023

The characteristics of a great business plan.

A business plan, which details a company’s objectives, strategies, and methods for achieving them, is an essential tool for any business owner. A strong business plan is necessary for luring potential investors, obtaining funding, and directing the company toward success. We will discuss the characteristics of a strong business plan in this blog post and why investors, the SBA, immigration, and other stakeholders care about them.

The business plan must be simple and straightforward

A good business plan must be simple and straightforward without being confusing. The plan should be written in straightforward, understandable language while also incorporating sophisticated concepts that provoke the reader’s intellect. It should avoid technical or jargon terms that might be challenging to understand. This makes it simpler for potential investors, SBA employees, and immigration officials to comprehend the company’s goals and objectives.

It must be grounded in reality

Second, while maintaining a burst of ideas, a good business plan must be grounded in reality. It should consider the current market conditions, the level of competition, and the company’s resources. Potential investors or lenders are unlikely to take seriously a plan that is overly idealistic or unrealistic. A strong business plan should clearly assess the company’s strengths and weaknesses and offer a plan for building on the company’s strengths while mitigating the weaknesses.

Thoroughly researched

Thirdly, a solid business plan should contain information that has been thoroughly researched. The strategy should be supported by data from market research, competitor analysis, financial projections, and other pertinent sources. A well-researched plan helps to convince potential investors, SBA, and immigration officials of the company’s potential and its ability to achieve its goals.

Must be adaptable and full of ideas

Fourthly, a strong business plan needs to be adaptable and full of ideas. The strategy must be flexible enough to accommodate shifting market conditions, new opportunities, and other unanticipated events. A rigid or inflexible plan could quickly become outdated and stop giving the business the direction it needs. Even in the face of unforeseen obstacles, a flexible plan can help the business stay on course and accomplish its objectives.

Must be thorough without becoming complex

Fifthly, a strong business plan must be thorough without becoming excessively complex. All facets of the business, including marketing, operations, finances, and management, should be covered in the plan. The strategy should paint a clear picture of how the business will function and how it will make money. A thorough plan aids in understanding the company’s potential and evaluating the risks associated with lending or investing for investors, the SBA, and immigration officials.

Presented with visual aids

Last but not least, a strong business plan must be presented well with plenty of visual aids. The plan should include charts, graphs, and other visual aids to help communicate the company’s goals and strategies. It should also be aesthetically pleasing and simple to navigate. A well-presented plan has a higher chance of grabbing the interest of potential investors, SBA officials, and immigration officials, as well as making a positive impression.

In conclusion, a solid business plan is a crucial resource for any owner who wants to grow their company. A strong plan should be clear and concise, realistic, well-researched, adaptable, thorough, and well-presented. A strong business plan can make all the difference, whether you’re trying to draw in potential investors , get SBA funding , or get an immigration visa . Bplanwriter.com provides professional business plan writing services and can produce a strategy that has a higher chance of success.

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May 1, 2013 By Richard

Top 5 Characteristics of a Successful Business Plan

“No, no, no. It’s cross the I’s and dot the T’s… duh!”

Before you can get around to investing your money, hiring a staff or making a product, you need a business plan. Without a business plan it is difficult to achieve consistent, long-term success. The business plan is an outline of how the product will be created and marketed, how funds will be raised and who will buy the product.

The more detailed your business plan the better. It should look at all aspects of the business and plan for every step. One of the most important parts of the business plan is the executive summary. The executive summary is a short narrative summarizing the value of your business idea.

It helps investors or financial institutions to quickly understand the business you propose to start. It is important it be written in a way to get investors excited about the business and want to read your business plan.

The 5 Key Elements

There are 5 key elements that must be included in an effective business plan.

• Clear description of product or service
• Market & competition information
• Your unique selling proposition (USP)
• Technology and strategies required
• Listing of feedback obtained throughout your process

It should provide a clear description of the product or service and contain an in-depth look at the market you plan to enter and your primary competitors. This should also show what makes your product or service unique and will make customers choose you and not your competitors.

Any technology to be employed should also be clearly described along with the resources you will need for production and marketing. The fifth element of the business plan is a listing of some of the feedback your executive summary has generated.

The business plan itself should contain an in-depth description and analysis of the market you propose to serve. It should include as much demographic information as possible. This will help you to better understand what your company needs to do to attract and serve them and properly position your company in the marketplace.

Part of your plan has to be ways in which you anticipate your company will grow. It should include how you think your competition will react to your entrance into the market and how you will counteract it. The business plan should also include information on any intellectual property you have in the works.

Pricing is very important

Fat stacks and all that – keep the money in mind and maybe in hand.

In order to come up with a price that ensure you a good profit you have to know what it will cost to create the product. You must also show why you think your product is economically viable. Do an assessment of your company and identify any competitive advantages you may have.

Show if you are a company which will create a series of products and services or your focus is one major product which you feel will make you a success. It is also crucial for you to assess the size or the market and how much of it you can capture and control. List any trends or technologies which could negatively affect your company’s development and growth.

List the required resources to make your vision a reality, too ( like I did here ). This should include the members of your proposed management team and any other key hires you plan to make along with all technology or equipment you will use. You should also state the amount of capital you will need and a financial plan to show how you will use it. Point out your potential revenue streams.

You also have to include a profit and loss statement, a balance sheet and a cash flow plan that covers the first 12 months, 12 quarters and one for each of the first three years. It should show when you anticipate beginning to make a profit. You must also identify your sources of funding so don’t close out that file before you have this covered.

Get Your Plan in Order

The 5 main characteristics of a business plan you need to consider are to include clear information about your product or service, the market and competition, why you’re special, what technology you are to use, and what feedback you’ve received and used through your growing phases. Sure, there’s going to be a lot more to a winning business plan that brings in round after round of funding, but make sure you cover these basics first. You can work on tweaking it for ultimate success later.

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6 Essential Qualities of a Good Business (Good to Great)

This article is an excerpt from the Shortform summary of "Good to Great" by Jim Collins. Shortform has the world's best summaries of books you should be reading.

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What are the qualities of a good business? How do you turn a good business into a great business?

We’ll cover six qualities of a good business, from Jim Collins’s classic Good to Great. Learn how to make your good business a great one.

Qualities of a Good Business

Below are the six most important qualities of a good business :

Quality #1 of a Good Business: It Cultivates Singular Leadership

The first quality of a good business is strong leadership. Good-to-great companies have what Collins et al . call “Level 5” leaders. Level 5 leaders are personally humble, almost shy, but highly driven professionally—more like Lincoln than Patton.

They avoid the limelight and tend to credit exterior forces or colleagues for their companies’ successes. Although they’re often personally likable and inspiring, they’re not usually “charismatic.”

Their lack of ego enables them to concentrate on one thing and one thing only: the company’s success .

How to achieve it : Collins admits that Level 5 characteristics are likely a product of both nature and nurture and so are difficult to create out of whole cloth; he also doesn’t have hard data to back up any suggestions he might make. His best advice for aspiring Level 5 leaders is to follow the other precepts he outlines. That way, even if you aren’t a Level 5 leader, you’ll at least be acting like one.

Quality #2 of a Good Business : It Assembles the Right Team

The second quality of a good business is the right team. Good-to-great companies retain the right people before embarking on any specific program.

A good-to-great team is composed of people who care deeply about the company and will argue passionately for the decisions they believe are right (but will come together to support whatever decision is eventually reached).

Avoid at all costs the “genius with a thousand helpers” model; management teams should be composed of independent and critical thinkers, not “yes people.”

How to achieve it : (1) Don’t hire until you’re sure you have the right person; (2) recognize when you need to make a change (whether by shifting a role or letting someone go) and act swiftly; and (3) assign your best people to your biggest opportunities rather than your biggest problems.

Quality #3 of a Good Business : It Unearths and Faces Facts

The third quality of a good business is that it faces the facts. Good-to-great companies are evangelical about recognizing market realities and reacting in kind.

That said, no matter how dire the facts, they never lose faith that, eventually, they’ll prevail.

The key is to be stoic yet hopeful, realistic without turning cynical .

How to achieve it : With the right management team—one comprising sharp, critical thinkers—the facts should never be in short supply. Leaders can encourage truth-telling by: (1) Beginning meetings with questions , not answers ; (2) cultivating, rather than stifling, debate among the team; and (3) conducting clear-eyed analyses of mistakes without assignation of blame.

Quality #4 of a Good Business : It Thinks Like a Hedgehog

The fourth quality of a good business is that it thinks in a simple, singular way. “Foxes” know many things and see the world in all its complexity, whereas “Hedgehogs” know one big thing and order the world according to that thing.

A good-to-great company thinks like a hedgehog by developing a “Hedgehog Concept”—an elegant, easy-to-understand guiding philosophy based on facts—that it adheres to fanatically .

How to achieve it: A company’s “Hedgehog Concept” is derived from the answer(s) to three questions: (1) At what can I be the best in the world? (2) What is my financial engine? And (3) What am I profoundly passionate about?

Quality #5 of a Good Business : It Maintains Discipline

The fifth quality of a good business is that it’s disciplined. Good-to-great companies make the jump because they constantly refer to and consistently realize their Hedgehog Concepts. Rigorous adherence to a Hedgehog Concept saves companies from panic acquisitions or misguided projects.

Good-to-great companies also lack the administrative and managerial burdens of other companies— with the right people in place and an easy-to-understand Hedgehog Concept, the need for tight management or layers of bureaucracy withers away . Discipline does not mean a tyranny presided over by the executive.

How to achieve it : (1) Allow individuals freedom within a clear framework of responsibility; (2) retain self-disciplined people who are driven to produce results; (3) recognize that a disciplined culture is different from a culture led by a tyrant or disciplinarian; and (4) adhere fanatically to hedgehog thinking. A key technique for staying true to your Hedgehog Concept? Create a “stop doing” list .

Quality #6 of a Good Business : It Uses Technology Tactically

The sixth quality of a good business is that it adopts technology slowly. For good-to-great companies, technology isn’t the creator of great results but their accelerant .

Rather than follow technological fads and adopt new technology for its own sake, good-to-great companies pioneer particular uses of new technology .

How to achieve it : When evaluating a new technology, the key question to ask is: How does this technology impact my Hedgehog Concept? If it doesn’t, you can safely ignore it and/or accept parity in its use; if it does, you must figure out how you can lead in the application of that technology.

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Like what you just read read the rest of the world's best summary of "good to great" at shortform . learn the book's critical concepts in 20 minutes or less ..

Here's what you'll find in our full Good to Great summary :

• The 3 key attributes of Great companies
• Why it's better to focus on your one core strength than get spread thin
• How to build a virtuous cycle, or flywheel effect, in your business
• ← Fixed vs Growth Mindsets: Complete Explanation
• High Expectations for Students: Are Yours High Enough? →

Amanda Penn

Amanda Penn is a writer and reading specialist. She’s published dozens of articles and book reviews spanning a wide range of topics, including health, relationships, psychology, science, and much more. Amanda was a Fulbright Scholar and has taught in schools in the US and South Africa. Amanda received her Master's Degree in Education from the University of Pennsylvania.

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Top 10 Characteristics of a Good Planning

This article throws light upon the top ten characteristics of good planning. Some of the characteristics are: 1. It is Based on Clearly Defined Objectives 2. It is Simple 3. It Provides for a Proper Analysis and Classification of Action 4. It is Flexible 5. It is Balanced, Practicable and Suitable According to the Size and form of the Business 6. It is Time-Bound and Others.

Good Planning: Characteristics # 1.

It is Based on Clearly Defined Objectives:

A good plan is based upon clear, well-defined and easily understood objectives. General objectives like improving morale or increasing profits are ambiguous in nature and do not lend to specific steps and plans. If possible, objectives must be quantified for sake of simplicity.

Good Planning: Characteristics # 2.

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It is Simple:

A goods plan must be simple and comprehensive. When the plan is simple, all employees of the organisation can know its significance and it can be easily put into operation, which leads to achieve objective.

Good Planning: Characteristics # 3.

It Provides for a Proper Analysis and Classification of Action:

It provides for a proper analysis and classification of action i.e., it establishes standards. A good plan should establish standard. Comparing actual results with standards can make a proper analysis. It leads to effective control.

Good Planning: Characteristics # 4.

It is Flexible:

Planning should be flexible enough to incorporate any changes in the resources, if necessary. Additionally, it should be responsive to changed conditions so that if future events do not follow the anticipation, the same plan can be modified and adopted to the altered situation.

Good Planning: Characteristics # 5.

It is Balanced, Practicable and Suitable According to the Size and form of the Business:

A good plan should be well balanced so that the existing resources are properly utilized for all functions and short-term gains are not at the cost of long-term gains and vice-versa.

Good Planning: Characteristics # 6.

It is Time-Bound:

The time period allowed for achieving goals should be reasonable even though planning is an attempt to anticipate the future. Long-range planning are more uncertain. Hence, the time period covered should be reasonable and reasonably stable.

Good Planning: Characteristics # 7.

It uses Available Resources to the Utmost before Creating New Authorities and New Resources:

A good plan strives for optimal utility of physical as well as human resources in unison and harmony.

Good Planning: Characteristics # 8.

Participation by Subordinates:

Planning should not be an exclusive responsibility of top management. Subordinates will not be responsible if a plan is imposed upon them. Also subordinate participation generally ensures the sincere and serious effort on their part to make the plan successful.

Good Planning: Characteristics # 9.

Planning is initiated by different managers of different divisions at different times. It is necessary that a good plan should incorporate all these departments, maintaining the consistency, and centralised objective must be the focus.

Good Planning: Characteristics # 10.

It is Comprehensive:

It is comprehensive and includes each and every aspect of the objectives.

Related Articles:

• Comparison between Plan and Planning | Management
• Steps to Make Planning Effective | Planning | Functions | Management
• Characteristics of Planning

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Start » strategy, 10 essential things successful businesses have in common. does yours.

We spoke with 10 business owners who shared the most important characteristics of successful businesses.

Entrepreneurship is a difficult yet rewarding career path regardless of the industry. While different types of businesses might measure success differently, there are universal habits or qualities that thriving businesses have in common.

We spoke with 10 business owners about the most important characteristics of successful businesses. Here's what they shared.

Willingness to take chances

Business owners who are willing to take chances tend to achieve more than those who play it safe.

“Successful businesses may be established enough to follow stable business processes, but they’re also bold as well as risk-taking,” said Jake Smith, managing director of Absolute Reg . “They know that failure is just a start to becoming successful. And while they’re practical, successful entrepreneurs are always willing to make modifications.”

Unique value

Providing customers with unique value helps businesses stand out from their competitors, said Reda Elmardi, CEO of Strong Chap .

“We can’t all have the cheapest prices, but you can surely emphasize other aspects of benefit,” Elmardi added. “From engaging industry experts to add to your customer service, to [finding] unique goods/offerings, to executing loyalty programs, there are countless ways to make your business distinct from your competitor.”

[Read: 10 Hugely Successful Companies that Reinvented Their Business ]

To both reach and retain success, businesses must have tenacity, or determination, and persistence in the face of conflict.

“Tenacity will allow you to withstand the toughest of times and also fully embrace the best of times,” said Christopher Grozdon, CMO of DASH-SEO . “There will always be ups and downs throughout everyone's lives, yet with owning a business, you will certainly experience those ups and downs to the extreme … If you have the tenacity to push through tough times and work hard to achieve your goals, you'll most likely become a successful business, through and through.”

Customer-centric approach

Many businesses get swept up with their own personal goals and lose sight of those who matter most: their customers.

“One thing successful businesses have in common is … a strong customer focus,” said John Stevenson, marketing specialist at My GRE Exam Preparation . “They create a culture that is centered around their customers and focus their processes, products and services around their services needs. Delivering constant high quality products/services also helps them succeed as people's regard for them remains high and positive.”

[Read: 10 Key Talents Most Great Entrepreneurs Have ]

A business that is able to nurture the same passion they have for their offering within their employees is one that will deliver excellence to their clientele at every touchpoint.

Lance Wilkins, founder, Call Outdoors

Good marketing

Chris Taylor, marketing director at Profit Guru , noted that successful businesses tend to have good marketing strategies that got them there in the first place.

“Businesses normally obtain the most success through their marketing efforts,” he said. “The key to your marketing strategy is to employ as many marketing channels as possible. For instance, pulling customers by pay-per-click advertising, newsletters and social media is expected to attract more customers than it would from practicing just one of these courses.”

Strong vision

If you lack a specific vision or company mission, your business won’t be consistent, which can hurt your bottom line.

“Most successful businesses have a strong ultimate objective which they strive for every day,” said Kevin Mercier, founder of Kevmrc.com . “These businesses achieve their goals by setting short-term, medium-term and long-term objectives which they go on to accomplish day by day. This vision is not just instilled into higher-level management but even lower-level employees that work together in synergy to achieve their firm's ultimate goals.”

Passionate leaders

According to Lance Wilkins, founder of Call Outdoors , passionate leaders are the backbone of thriving businesses.

“One of the key characteristics of a successful business is a leader (or leadership team) who gets their employees as excited about their product or service as they are,” he said. “A business that is able to nurture the same passion they have for their offering within their employees is one that will deliver excellence to their clientele at every touchpoint.”

[Read: The Surprising Psychology of Successful Entrepreneurs and Why They Take the Risk ]

Empowered employees

Employees play a crucial role in a business’s success and development, and it’s important they’re in alignment with their company’s mission.

“Most successful [business owners] … make sure their employees are empowered to make decisions and take ownership of their work,” said Karthik Subramanian, senior content manager at Picmaker . “That means there is no micro-management, nor is there any fear-mongering. Rather, it is a collaborative approach.”

Adaptability

Tom Winter, founder of DevSkiller , stressed the importance of keeping up with your customers’ ever-changing expectations.

“Businesses that are resilient and withstand the tests of time, including pandemics, are the ones that are the most adaptable,” said Tom Winter, founder of DevSkiller . “With the fast pace of technology these days and constant shifts in trends, it’s important to be able to mold your business accordingly.”

Diversity is especially important today, as consumers and businesses alike are aiming to be more inclusive and socially responsible.

“The notion that two heads are better than one only works if both of those heads are listened to and each of them have something different to say,” said Christy Pruitt-Haynes, leadership development, human resources and diversity consultant . “If not, a company can get a louder version of the wrong answer. Diversity, when coupled with collaboration, ensures innovation and a wider skill set for the company.”

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Ten Characteristics of an Effective Business Plan

1. Planning for business should be a process not an event. Even if it is designed to produce a tangible output like a business plan to be studied by potential investors, it is the process of planning which will ensure focus, commitment and understanding, not the plan itself.

2. The process should be continuous, frequently reviewed and updated. A "once a year" formal meeting is likely to produce significant omissions, constrain creativity and invite people to switch-off from strategic and tactical thinking for the rest of the year.

3. It should directly involve everyone accountable for implementing the business plan. It should also involve, whether directly or indirectly, everyone in the organisation at some stage. The purpose of involvement is to secure deep understanding and commitment.

4. Business planning should be led but not constrained by strategy. Objectives and action plans are extremely difficult to set without an idea of their purpose and focus.

5. To ensure communication is simple and action effective, business planning should define a few, harmonised priorities.

6. When planning for business, organisations should have a good understanding of:

• Clients, their current and anticipated needs and behaviour; how these may change  << click for more >>
• The market within which the organisation operates and how it is likely to develop in the future
• Competitive forces and how they are likely to evolve in the medium to long term
• Macro factors affecting the organisation and their likely impact  << click for more >>

7. It should attempt to balance this analysis of the external environment with a clear understanding of its internal resources and competences  << click for more >>

8. The organisation’s strategic purpose and intent should derive from decisions about how best to manage its resources and competences in order to prosper in the environment in which it operates

9. The process should seek to capture what the organisation has learned from its past, from its competitors, suppliers and customers, and from its own people

10. Finally, planning and review should be lock-stepped together. This means defining plans in terms that are measurable, but also ensuring that frequent reviews examine progress, as well as the effectiveness of the plans themselves.

What is your interest in Business Planning? << Click Here >> to see if I can offer further help.

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9 basic features of a good plan – explained.

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Nine Basic Features of a Good Management Plan are: 1. It should define objectives, 2.It should be simple, 3. It should be clear, 4. It should be comprehensive, 5. It should be flexible, 6. It should be economical, 7. It should establish standards, 8. It should be balanced, 9. It should be practicable!

1. It should define objectives:

Objectives are the ultimate goals towards which all activities are directed.

A statement which lays down objectives should be clear and definite and everyone in the organisation should understand it in the same sense.

2. It should be simple:

If a plan is expressed in a language which is not understandable by the personnel of the concern or it is complicated, it may create problems for those who are to actually put it into action.

3. It should be clear:

A good plan must not contain anything that is ambiguous or indefinite.

4. It should be comprehensive:

A good plan should contain all that is necessary for the attainment of the objectives of the enterprise. If a master plan is prepared for the whole organisation it will be more useful as it can be seen that nothing is left from it.

5. It should be flexible:

A flexible plan adjusts the changes in the plans without any delay. Hence a plan must not be rigid. A plan should be broad enough to meet the future challenges and uncertainties.

6. It should be economical:

A plan should be made keeping in mind the resources available with the concern and making optimum utilisation of the available resources. In other words, a plan must recover its cost and should result in the least operating cost.

7. It should establish standards:

A plan must lay down the standards to be achieved. The actual performance is compared with these standards and deviations if any are noted.

8. It should be balanced:

It is necessary ensure that there is a proper co­ordination between different types of plans such as short-term and long term plans, “plans of different departments etc. A business enterprise usually has a number of department’s viz., production, marketing, finance etc. Each department frames its own plans. It is for the management to see that all these plans are well balanced.

9. It should be practicable:

A plan is worth only if it is practically workable and realistic. It should be formulated keeping in view the limitations of planning. If a plan is good in theory but bad in practice, it is of no use. Similarly, if the desired results are not achieved by a plan, it leads to frustration at all levels in the organisation.

Related Articles:

• How to make your Business Plan Tremendously Effective? (9 Principles)
• Formulating the Financial Plan of a Firm: 6 Basic Considerations

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Seven Qualities of a Good Plan

If you want to get something done, it helps to have a plan. And if you want to get it done right, it helps to have a good one.

Introduction

“Proper planning prevents piss poor performance.” – The British Army.

Look – you probably don’t need a plan for everything in life . And there are good reasons not to make one for every…..little…thing.

But sometimes you need a plan and it needs to be a plan you can carry out.

It all depends on complexity, situation, and what you need the plan for.

My work has always been dominated by planning and carrying out plans. The plans I’ve made – disaster management, crisis, security, operational, and contingency plans for various emergency and development organizations all over the world, are certainly a step above in complexity from most personal stuff and a step or two below planning for something as complex as a war or three or four steps below planning for something as far-reaching as climate change.

That being said it has been my experience there are certain qualities a plan needs to make it good and worthwhile. The following are mine. If you’re looking for others [though they have a lot in common], try here and here .

Example: Contingency Plan for an Aid Organization

In order to layout the qualities of a good plan, one needs an example, fortunately, I have a lot of experience to draw on for you. The example here is the creation of a contingency plan for an aid organization that operates in a low-intensity conflict zone [not all-out war, but still conflict]. A contingency plan is a plan that covers what to do if certain bad things happen.

That can pretty much be applied to anything in society these days [or most days].

This example is generalized for the sake of the post and will include other examples as we go along. Mostly it’s just useful to put the qualities of a good plan in context.

Have Clear Goals

Plans are in service of your strategy which in turn are in service of your objectives. Be as clear as possible about your objectives.

In the contingency plan example, the primary goal is simple – keep everyone safe. Second, you want to deliver humanitarian programming in an insecure environment. So, you have a primary goal [safety] that would win out if the two goals were set against each other – but as long as you can do both – you do both.

Now it is important to note here, in order to understand what is an acceptable risk in this environment [both to stay in the environment and to do programming] you have to establish a risk threshold. The risk threshold was how much risk you would accept in order to be in and do programming in the environment. If you cross that line, then you will know you can no longer keep people safe in that environment and/or do normal operations in that environment.

In this case, our risk threshold acts as a limit or check on our goals. An unconstrained goal [i.e. make profits at all costs – even the planet] is not usually healthy or sustainable.

Have Clear Strategy

Be clear about your strategy. So, if the above [keep everyone safe] is the ultimate objective – what is the strategy to achieve that?

I follow my own simple rule of humanitarian security. “If we’re not there when bad shit happens then bad shit doesn’t happen to us”. It is a simple strategy on its face but slightly more complex when you understand it.

It means you do all your work right up until the point where you think the risk will exceed your risk threshold. You have to understand when that is likely to happen and then get out of Dodge. That way you won’t be there when the bad stuff happens.

Simple to say, more complex to do.

Have coherent actions to enact your strategy

You start with a goal, then you have a strategy to achieve that goal. Then you make a plan, which is a set of coherent actions, in order to carry out the strategy.  In this case, in order to not be there when bad shit happens, you need to do a couple of things:

First, everyone needs to understand what your risk threshold is. Then you need to understand what the triggers are of where the risk would cross that threshold. For example, if you have credible reports of an impending armed attack – that’s an obvious trigger.

Second, you need to know what is going to happen and when. You need information networks in order to know what’s going on. You need to know who to talk to, what information is valid, how you get the info, and how to make decisions based on the info.

Finally, you need to know how to move and where to move too. Where is your nearest safe point? How do you get there? By foot? Vehicle? Chopper? Or do you have the ability to develop options? Hopefully, you always have the ability to develop options.

This brings me to the next point…..

Make sure your plan is flexible

Plans should be flexible and give you options based on your likely scenarios. In the current scenario, your options could consist of multiple fallback points and multiple modes of travel.

Let me give a less urgent example [though only slightly]. Say you have a plan to quit smoking. It states that every time you want a cigarette, you go for a walk. Not good. What if it’s cold and you don’t feel like being out in the cold? How about if you’re around people and you can’t leave to go for a walk? Or if you’re this or that?

Good plans usually have options – enough options to be flexible but not so many that they’ll drown you in choice.

Mike Tyson once said everyone has a plan until they get punched in the face . True, but in a good plan you’ve got all the options to respond with depending on how you got hit [if you can get yourself to respond after getting hit – a different problem].

Make sure your plan is simple

The plan should be as simple as possible – and deal with the needed complexity in order to achieve your aims. Keep it simple stupid. Yet if it’s so simple it doesn’t address what you need to address, then it’s not worthwhile either. The trick is, understand the complexity of what you’re trying to do, figure out what’s most important, address it, and strip the rest.  

In the security example – the plan that this example draws from, boiled down to – if we had enough rumors of a potential impending attack – we’d go across the border and work from a safe house we had set up on that side.

It’s simple. And we addressed the complexity we had to. We needed documentation to cross the border. Some staff would stay because they were local and they were staying with their families. The duty of care for the organization differed depending on where someone was hired. We had to address the quality of information and what the triggers for movement were. We had to address the potential misuse of the safe house. Yet once all that was done, in the preparatory phase – it’s fairly simple to understand and to carry out.

Remember you can have a plan to go to the store and a plan to mitigate the state of California against raging wildfires – one is obviously more complex than the other but neither should be more complex than it needs to be to achieve your specific aims.

Make sure you create your plan in an inclusive manner

The creation of a plan should include all the stakeholders [or at least representatives of all the stakeholders]. You could never make an evacuation plan without including the people who have to evacuate or the people who facilitate the evacuation plan.

You shouldn’t make a plan for your family – without your family.

I could make a plan to quit smoking by myself – but even then – it will be more successful if I have help.

It is a simple concept, yet one we don’t always follow through on.

Diversity of opinion and experience and working through disagreements constructively – will create better decisions and a better plan. Are there times when two people just need to go into a room and knock out a plan for the larger group? Definitely, but, consultation should have already been done. Inclusivity will not only make a better plan, but it will also make it more likely that the people can and will carry the plan out when the time comes.

Make sure your plan is implementable

And that’s the final thing. You have to be able to actually do your plan. If you can’t do it, then it sucks. I’ve had this happen to me before. I thought I wrote the Shakespeare of plans but we couldn’t do it. So my plan sucked.

A lot of that suckiness came from failure to do one of the other six things on this list. We made a plan that was too complex. Or a plan that was made in a vacuum. Maybe it wasn’t flexible. Or, maybe, it just wasn’t realistic.

And if your plan isn’t realistic, it’s not going to be implementable.

The plan needs to be implementable, simple, flexible, inclusive, clear, and have compound power [the connection from your overarching goal to your strategy to your plan].

Start with your strategic goals, craft a strategy to achieve those goals and overcome obstacles, create a plan of clear actions to enact that strategy, keep it flexible and keep it simple as possible while addressing needed complexity, make sure everyone is involved in the plan creation and make sure you can carry it out.

Those are the foundations – then the trick becomes scaling up or down based on the complexity of what you are doing.

Do you want help making a plan? Contact me at [email protected] .

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