Mom Invented

I have an idea and I just want to start moving - do I really need to write a business plan first?

- Meredith, Park City, UT

Dear Meredith,

When you're excited about an idea, it's tempting to start working on your business rather than sitting down to write about it. I know this because I dreaded writing my own plan when I first started out! So this falls into the "do what I say, not what I did" category -- I have since learned the benefits of starting with a plan.

Your business plan will help you focus your thoughts, organize your plan of action, and develop a strategy for moving forward. It will also encourage others to take you more seriously, including potential business partners or vendors. Plus a written plan has a way of turning an idea into something more concrete.

Your first plan need not be overly complex with elaborate financial models. So what should it include? It should spell out the goals of your business and articulate the steps you need to take to achieve these goals. It should also answer the following questions:

• What am I building? Is it a service or product?
• Why does this product or service exist? What does it accomplish?
• What are my specific short- and long-term goals?
• How will I build this company over time?
• What is the work to be done?

There are many books, websites and workbooks that can help you write your plan. I personally loved The One Page Business Plan -- I found it accessible and simple but also very effective. (Check it out at www.onepagebusinessplan.com.) Remember that your plan is always evolving, and that it can and should be revised as your product, service or company develops. Happy planning!

Tagged as: Ask Tamara, Business Advice, business plan, Business Planning, Product Development