Chapter 1

Preparing to Do a Business Plan

IN THIS CHAPTER

Getting your planning resources together

Figuring out who needs to work on the plan

Laying down some planning ground rules

Checking out what the written plan looks like

Planning is serious business. For many companies, a solid business plan is the difference between success and failure. Many people going into business for the first time want to rush right in, create a website or hang up a sign, and start making money - a natural response for anyone excited about a new business idea. But taking time up front to prepare can pay off in many ways down the line, especially when it comes to writing a business plan. And face it: After your company is up and running, you may not have all the time you need to devote to the major pieces of your plan. So, first lesson learned: A business plan is not an expense of either time or money; it's a necessary investment for a profitable future!

But all that being said, we also want to make something else abundantly clear to you: We live in volatile times! In fact, it's hard to find anything in the recent past of business and economic life that hasn't been as disruptive as the present - a revolution in communications technology, globalization, a potentially "new world order" emerging, financial market gyrations, artificial intelligence (AI) and robotics, breakthroughs in neural science, environmental disasters, and on and on. So how can you plan when who knows what might come next?

Fair question. But before you get started on this admittedly lengthy journey, we want to let you in on a little secret: Planning is not about prediction. Nope. What it's actually about is a rational process of understanding - your market, your customer, your competitors, your organization, and yourself. That is, serious planning forces you to consider exactly and precisely what's going on out there today. Where you go after that all depends; some things do have a higher probability of occurring than others. But by knowing the realities of the present, you are going to be far better prepared to quickly pivot when those pesky unknowns pop up - and trust us, they will. They always do; that's life.

So put aside any starry-eyed thoughts you might have about this book being your magical little crystal ball to gaze into the future. It isn't. But it is your realistic guide to comprehensively analyze a potential business venture and undertake a deeply detailed review of what needs to be done to get that venture off the ground. And if something totally unexpected jumps up to bite you? By rigorously internalizing what we cover in this book, you'll be far better prepared than anyone else to respond quickly and proactively to get back on the road to success. That, dear reader, is our solemn commitment to you. Now let's buckle up and get started!

Identifying Your Planning Resources

Having the right resources at the right time can make business planning easier and more successful. Fortunately, you can now find more useful and usable business-planning resources than ever before, from websites, books, seminars, and real, live experts. Of course, you may also find plenty of stuff that isn't worth looking at - much less paying for. And just as you can't always judge people by their resumes, you can't evaluate a site simply by its likes.

As you begin to put together your business plan, you may discover that you need some additional tools - an online tutorial in marketing, for example, or business-planning software that can help you create and refine your written document. Don't be afraid to use these - they can help!

But let's also recognize the obvious: You are the single best resource for your business planning efforts - your creativity, persistence, and willingness to dig in and do the heavy lifting. No pain, no gain.

Checking out the variety of sources out there

Obviously, you've already selected one of the best hands-on business-planning sources around (all right, the best, in our humble opinion). But admittedly, you can also find other useful business-planning tools out there - particularly ones that concentrate on specific areas, such as how to do digital marketing, the ins and outs of start-up financing, or others that focus on particular kinds of businesses, such as not-for-profits or selling on eBay. Hey, we even have a slew of these alternative sources available within the For Dummies series - check 'em out!

While you can't always tell a book by its cover, you can find out a lot by reading through its table of contents. You should also try dipping into the first chapter. If you're browsing on the web, booksellers like Amazon.com often include a detailed table of contents, along with the first chapter, directly on their website. Readers' reviews and ratings that you can find online can also help steer you toward other particularly useful books. And don't forget to ask colleagues, business advisers, family and friends, or investors to list their favorite business-planning go-to sources. The results may surprise you.

The basic principles of business planning may be timeless, but certain subjects - where and how to acquire funding, for example - change rapidly. An unrevised three-year-old site may already be ancient history. If you want to find timely information, such as details about tax considerations for a small business, be sure to check the source's original posting or publication date.

For the timeliest info, turn to relevant blogs, podcasts, social media, chat rooms, magazines, newspapers, and journals. For a broader and deeper sweep of trends and events, read the books. They offer a terrific way to keep up on what's happening in the world of business in general - and your industry in particular. The business press also provides an efficient way to routinely scan the business environment for trends or new developments that may affect your business plan. If you're not sure what online or print sources focus on your particular industry or your geographic region, do a quick search on the Internet (see the next section for more details).

Surfing the Internet

Today, countless numbers of websites offer information on business planning. Some are free; others tease you with a sample of what they have to offer and then charge you for more detailed data via "freemium" options. In our experience, some of the freebies can be just as helpful as the pay-now sites, so we suggest that you first check the no-cost offers before surrendering your credit card data. In particular, the U.S. federal government offers heaps of solid information on planning, starting, and operating your own business through its Small Business Administration site (www.sba.gov). And if you reside outside the United States, you will likely find that many public institutions in your region offer similar resources; business planning, after all, is not a U.S. monopoly.

INTERNET HOTSPOTS FOR BUSINESS-PLANNING INFO

A treasure trove of business-planning information and resources is available online. To help you sort through all the riches, we've put together a list of popular sites that provide useful and reliable tips, tools, and examples - including dozens of real-life business plans:

• www.sba.gov: The Small Business Administration (SBA) site is far and away the best source of information about planning, funding, starting, and running a small business. You find useful FAQs, as well as counseling help and shareware software programs that you can download for a nominal fee.
• www.irs.gov/smallbiz: A great site if you run a small business or are self-employed. The IRS provides all kinds of useful industry and profession-specific information. The site also includes links to other helpful non-IRS business resources on the web.
• www.nfib.com: The National Federation of Independent Business (NFIB) calls itself the largest advocacy organization to represent small and independent businesses in the United States. Its website features a set of tools and tips that small business owners may find useful.
• www.score.org: The Service Corps of Retired Executives (SCORE) offers free consulting to start-up business owners. Along with a way to contact SCORE, their website includes updated success stories about a variety of small- and medium-sized businesses. Also useful is a list of business-related links.
• www.nolo.com: You can't find a better place than Nolo to turn for basic information on the legal aspects of virtually any kind of business. The website also offers free advice, including info on insuring your home business, independent contractor arrangements, trademarks and copyrights, debts, bankruptcies, and employment law.

Lists of the hottest business-related websites have a way of going out of date fast - kind of like teenage fashion when you think about it. And a resource that appears hot to one would-be entrepreneur may not be suited for another. Your best bet is to scout around the web yourself, looking for useful resources. On search...