Business Plans For Dummies. Paul Tiffany
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Foolish Assumptions
Believe it or not, we don’t need to consult a fortune teller to know a bit about your background. In fact, we can assume that you’re probably in one of the following situations:
You have a great idea for some radically disruptive new online service and can’t wait to get your own company up and running and start crypto-ing the cash.
Your boss just turned over a new leaf and wants a business plan from you in three weeks.
You’ve always run your business without a business plan, and you’re the one who turned over the new leaf.
You thought you had a business plan for the company, but it isn’t doing the job that it should.
You’re taking a course in management somewhere and have come to realize that your textbook is great on theory but lacking in practicality.
Are we close? Whatever your situation, you don’t need that crystal ball to make a business plan; just read this book. We can’t tell you the future of your business. But the business plan that we help you put together prepares you for the future. And we’re here with you every step of the way.
Icons Used in This Book
To guide you through your business plan preparation, we include icons in the left margins of the book. Here’s what they mean:
Beyond the Book
In addition to the material in the print or e-book you’re reading right now, this product comes with some access-anywhere goodies on the web. Check out the free Cheat Sheet for info on the elements of a business plan, a checklist of planning essentials, and much more. To get this Cheat Sheet, simply go to www.dummies.com and search for “Business Plans For Dummies Cheat Sheet” in the Search box.
Where to Go From Here
Take a minute or two to thumb through the book and get comfortable with what’s inside. Pick out a couple of chapters whose topics you’ve pondered in the past but never had the time to dive deeper. Better yet, turn to a chapter that covers a subject you think you already know about. Or if you’re really daring, just turn the page and start at the beginning.
Don’t forget to use the table of contents for a chapter-by-chapter breakdown. The index is also an excellent place to turn to find a specific topic right away. Meanwhile, good luck and may your business dreams come true!
Part 1
Getting Started with Business Plans
IN THIS PART …
We start by looking at what a business plan is all about. We convince you of the importance of a plan, just in case you’re still undecided.
After you’re sold on the idea, we identify some really useful planning resources. And to help you get your own plans underway, we outline a planning process for you and review the major pieces of a business plan.
We point out why values and ethics are so important to your company and show you how you can make practical use of them in your planning. We look at how a vision for your company gives you something to aim for and a direction to take.
Finally, we look at how to establish a mission for your company and develop effective business goals and objectives to fulfill that mission.
Chapter 1
Preparing to Do a Business Plan
IN THIS CHAPTER
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