Starting Your Planning Engine

The fact that you’re holding this book means the task of writing a business
plan has made it onto your to-do list. Now come the questions. What
exactly is business planning? What should it include? Where do you start the
process of writing your business plan?

Well, that’s exactly what this blog, is all about. It confirms your hunch that business planning is
essential — when you start your business and at every growth stage along
the way. Plus, it helps you think clearly about why you need a business plan,
whom your business plan is for, what key components you need to include,
and what kind of time frame is reasonable.

Writing a business plan is a big task, but this blog makes it manageable. This
chapter provides a quick and easy overview to get you oriented and on your
way to business-planning success.

Understanding Your Starting Position

the same, either. Every business comes to the planning process with different
issues and goals. Most start-up businesses understand the importance of
business planning. Without a plan, they usually can’t get funding.
But even businesses with plenty of cash can get into big trouble without
a well-thought-out plan. Business planning is an ongoing process for all
businesses — or at least it should be. Effective planning keeps established companies on track. It serves as a guide for companies that plan to launch a
new product or service or introduce a new marketing program to seize new
business opportunities.

A plan is also essential for companies in trouble who
want to chart an effective turnaround. Even companies that are looking to
go out of business need a plan if they intend to put themselves up for sale or
merge with another business. The purpose and the process of business planning,
in other words, are different, depending on your starting position. The
following sections describe some of the most common starting positions.