Committing to the Business-Planning Process

With a thousand issues clamoring for the precious hours in your day, committing
time to plan your company’s future isn’t easy. But operating without
a plan is even harder — and even more time-consuming in the long run. We
can give you dozens of good reasons to plan.

Two steps can help you get started. The first is to define your business situation
and how a business plan can help you move your business from where
it is to where you want it to be. The second is to list the ways that a business
plan can heighten your company’s odds of success. The next two sections
lead the way.

Defining your business-planning situation
To get your business where you want it to go, you need a map to follow,
which is what your business plan is all about. It starts with a description of
your current situation; describes your future plans; defines your opportunities;
and details the financial, operational, marketing, and organizational
strategies you’ll follow to achieve success.

Imagine that your company is a ship about to set sail on an ocean voyage.
Your business plan defines your destination and the route that you’ll follow. It
details the supplies and crew you have on board as well as what you still need
to acquire. It forecasts the cost of the voyage. It describes the weather and sea
conditions you’re likely to encounter along the way and anticipates the potential
dangers that may lurk over the horizon. Finally, your business plan identifies
other ships that may be attempting to beat you to your destination.

The same kind of planning is necessary back on dry land. To navigate a new
course for your company, you need to start with an assessment of where
your business is right now. You may be putting your business together for
the first time. Or your business may be up and running but facing new challenges.
Or perhaps your business is doing well and about to launch a new
product or service. Once you assess your current situation, you need to
define where you want to arrive and what strategies you’ll follow to get there.