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A Business Plan Matters. Entrepreneurship or Bust!

Your business plan is your compass.Do You really Need a Business Plan?

The phrase, “Pike’s Peak or Bust!”, became popular when gold was discovered in the Colorado Territory back in 1859.   It evokes images of those adventurous folk who risked it all for a chance at riches out West.   Those intrepid souls embarked on a journey into the absolute unknown. They had no guarantee of success, and relatively few succeeded.  A sense of adventure and a tolerance for risk are necessary traits in an entrepreneur. However, it must be tempered with good business sense, and a solid business plan.

According to the US Small Business Administration, over 60% of small businesses survive their first two years, and the odds of survival increase with the years.  This number is a far cry from the 90% failure rate that we often hear.  The SBA statistic is based on businesses with employees, which I believe can be misleading.  After factoring in Individual/Sole Proprietorships, that number could be closer to a 90% failure rate.  Starting a new business can be daunting.

A Business Plan is Like a Map

No matter how you fold it, starting a new business is not without risks. However, we can mitigate those risks with proper planning! A Business Plan is like a road map to success.  It does not guarantee that your business will succeed. It does provide  you with the tools to make smart decisions about your business.  Creating your Business Plan will clarify your Mission and Vision. This will help you to define measurable objectives for your business.  Setting goals as well as formulating strategies and plans for how you will market and sell your products. Again, proper planning will help you navigate the road blocks and  hazards you’ll encounter on your entrepreneurial adventure.  When you understand the story that the numbers tell you, you can adjust your course and reach your destination.

 

Additional Articles and Resources:

Small Business Administration – 9 Steps to Starting a Business

Entrepreneur.com – 7 Key Steps Toward Starting Your Own Business

Forbes – 16 Surprising Statistics About Small Business

 

 

Posted in: Business Advice

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