Your business plan will create the foundation for your success

This should not be a question you should ask. That’s like asking “do I need a steering wheel with this car?” or “Will I ever need a charger for this cell phone?” Although not everyone may agree that a business plan is necessary to start a business, it is highly recommended.

A business plan is not just a document that lenders and investors want you to have because they like to read it. Consider a new home development that is in the process of building 100 homes on one lot. Imagine if contractors, utility workers, cable splicers, and all the other workers involved in building a house showed up on the lot and said, “Alright, someone called for our services, well we’re here! ” He couldn’t imagine the chaos created by everyone’s arrival at the same time. There is something called a “construction process” when it comes to building new homes. We will look at it from a very broad point of view for a matter of time. First you have the excavation process, then the terrain has to improve and then we can start to build the foundation. The foundation is the foundation on which the entire house will be placed. Let’s stop and think about it. In order to have a firm foundation built for your home, one would want to ensure that the earth below does not give way at any given time.

Now let’s relate this scenario to your business. Imagine you have a vision to open a boutique and you have great ideas, marketing strategies, and incredible team players. You have what we call the “Dream Team”. What happens if the “dream team” decides to show up for the grand opening? Well, who signed the lease for the store? Who ordered the signage for the exterior foundations of the boutique? Wait, where’s the merchandise for the store?

Exactly. There has to be a “building process” for your grand opening of your business. First you have to trace the steps from dreaming to achieving. There should be a diagram of all the parties involved and which part of the process will become active. This is what we call the “blueprint” in the construction world. In the business world, we call it a business plan.

Take this time to review your strategic plan or business plan to make sure you are on the right track to build a firm foundation.