Business Plan?

Question:
My current question is whether a business or marketing plan can reflect the unpredictability of networks and the consulting scene in general?

Answer:
I think a business plan gives any business some sense of structure. I don't think it's necessary and it certainly isn't required unless you're seeking funds or for some other such reason.

But anytime you commit something to writing it seems to gel it and make it real. A good biz plan, like a goal, will give you something solid to work for.

So, my opinion is, if it will help you and you will feel good about it have one.

It sounds like your consulting business is like 99% of the rest of ours; it is a lifestyle business rather than an investment grade business.  If you are thinking of transforming your business into investment grade, then you need a formal business plan.  If, OTOH, you are planning to keep it small and a lifestyle business, then you still need an operating plan, but not the more elaborate document.

I try to forecast my cash flow for the years at two levels, exceptional and survival.  I need to know how close I am to overextending my resources just as well as when I am heading for the bottom.  These plans are especially important for your marketing & sales.  The typical scenario for a small consultant is to go from feast to famine because the good times preclude any marketing and sales.  When times are good you still need a plan to keep your sales (networking) going, and you need to know what level.  Likewise, when business gets soft, you obviously need to increase the sales and marketing.  You don't want to wait so late that you can afford to be effective in selling your services (e.g., taking a trip to close that big contract you need).  Your operating plans tell you your limits.  Your self-dicipline keeps you operating within an acceptable range.  For me, the self-dicipline has been the hardest part, both in preparing the plan like I should and in monitoring and executing it.

We NEED to respond to this:

Not only does a business plan provide a sense of structure, it also focuses the resources of the organization.   It will surface areas of management weakness, and strength, thus providing an indication of steps management needs to take.  

Planning, especially in the the environment of rapid change we experience today, embodies the essence of anticipation of multiple outcomes, together with a SET of plans (emphasis on plural) for dealing with those outcomes if and as they arise.

After 25 years in the business world, it is axiomatic that anyone who "thinks" a business plan is not an essential management tool, has just drawn up a plan for eventual failure.

This is a question, so basic in nature, it's not even a subject for debate.  A plan is essential.  Case Closed.

1, Business plans are not necessary if your investment is very little. At   that stage, you should be more concerned about finding customers. If    you have plenty, distribute your work.

2, There have been a lot of people willing to advise us on this newsgroup.    The bottom line in many cases is - we can do it for you. Thank you for    the advice, anyway. (Some people have been willing to advise me even    without that ulterior motive.)

3, The quality of sales pitches on www and other Internet facilities is    not very different from those found in non-electronic forms.

These three comments are not particularly aimed at Zurich.

I tend to draw a difference between a Business Plan (note caps) and a business plan (a plan for a business). Starting a business without any sort of plan can lead to a lot of pain further down the line. On the other hand, putting too much time into a formal plan might consume time better spent on selling services.

My approach is this: define the purpose of the plan first (to clarify thinking on what business you're in, to explain ideas to a potential partner or customer, to acquire funding, ) and then develop a plan to fulfill that purpose.

I've found that just getting my ideas down on paper causes me to ask myself questions I might not normally deal with. Putting thoughts into language requires some sort of structure. Putting them on paper gives them a little bit of consistency and permanence. Both processes are useful. Once I have something on paper, then I can develop it to any extent I feel necessary.



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