Where are you now? - must be your starting point. This question seeks to provide a planning base. It looks at your business to establish such things as:
- your business idea
- your current level of sales
- your customer groups
- your products and services
- your pricing policy
- your distribution policy
- your promotional activity
- your overall operation
- your employees
- your finances
Answering the question, "Where are you now?" is often a major stumbling block because most people don't know where to start. However, the answer is surprisingly simple if you divide your business planning into four key areas: Operational, Marketing, Employees and Finance. Such a division allows you to analyze your business (or assumed business) to create a solid planning base.
Where do you want to be at a future date? is simply asking you to visualize your business operation at a set date in the future. This visualization process is almost identical to the exercise of setting personal objectives. The difference, however, is that the focus here is on business objectives.
How will you get there? asks about the steps you need to take in order to achieve the business objectives you have set. These steps, or strategies, can be identified, written down and programmed.
Additional things a business plan should consider:
- What is a reasonable expectation of profitability and when?
- How will the business pay you and any team members?
- What are estimated expenses?
- What is the pricing strategy?
- What is the need for what you are offering and what profit margins can you expect?
