In the methodology for continuous improvement with business potential energy, a business plan is one of the crucial elements. It can help entrepreneurs to convert business potential energy in their ideas into kinetic energy that means performing work, or increasing performances.
This is an introductory text that will cover some of the vital points about the importance of business plans for every company.
Introduction to Business Potential Energy and Business Plan
You can dream how much you want, but nothing will happen until you don’t get outside and make your dream reality. Your dreams must be your motivation for everything in your life.
But, on the other side, everyone can dream. Dreaming is one of the easiest processes. They are a free and simple present creation of your own brain. One of the outcomes of the dreaming process is business ideas.
To convert your dreams, or business ideas with higher business potential energy into a successful company requires extra work from your side. That means more difficult activities than dreaming. One of the most important tools for converting ideas into a successful company is a business plan. Don’t be only a dreamer, be a dreamer and performer at the same time.
There are many people that are great dreamers, have great ideas with high business potential energy. But, at the same time, they continue with their boring jobs, because of the security that comes with their current workplaces.
Planning will help you to keep everything in motion in the desired direction. Without a step by step document, you cannot move your company from one stage to another stage in your business life-cycle. It is something that will be a roadmap for decision-making when you start with your company. In such a way, this document will convert your potential energy stored in your idea into the kinetic energy of your company.
Having a business without a business plan is like building a house without fundamentals.
What is a business plan?
You must remember that the purpose of the business plan of the startup businesses is primary to determine whether or not a particular business idea has sufficient business potential energy that can be converted into a successful business.
Your business plan can be every plan that will enable you to look into the future. You will focus on key activities, optimal resource allocation, and you will prepare yourself for potential opportunities and threats in that future. In such a way, this tool will become an operational, marketing, and financial design for your business.
What will need to cover your business plan?
In your plan, you must answer several crucial questions for the future of your business. These questions are:
- What are the acceptable expectation for sales figures, costs, and cash flow of your business?
- What are your strengths, weakness, opportunities, and threats?
- Who will be part of your target market?
- Who are your customers?
- What are your long-term business goals?
- What are the crucial activities for your business success?
- When these activities must be accomplished?
- Who will work and what will work in your business?
Often, a documented plan is required when you require a business loan or investment capital. Your plan is the first impression that potential investors will get about your venture. It is not just useful for obtaining finances, but also for improving all your business activities.
Every plan typically begins with the purpose and goals of any startup or existing business. But, after that, the critical question is how the entrepreneur will achieve those goals. This will require to include a detailed financial plan, marketing strategy, and activities that must be taken. On the other side, Business plan activities will cover activities such as market research, analyzing competitors, and comparing projected sales with realistic sales, promotional activities…
Planning as Never-Ending Process for Higher Business Potential Energy
Yes, planning is a never-ending process if you want to keep the highest possible level of your business potential energy. This is an important thing that you must remember.
If a business plan can increase the business potential energy of your business ideas, then the continuity of the planning process can increase your business potential energy stored in your business plan. Yes, a business plan is one of the elements that play a double role – converter and owner of business potential energy – in this business improvement process. Developing a business plan is a critical step for both new and existing businesses. But, here is not the end of the process. It will need to be a never-ending process because. So you will need not a static, but a dynamic document. This means that your plan must be seen as a continuous process without an endpoint.
Because planning means something about the future, and you cannot have an excellent prediction about your future, you must keep your plan up-to-date and fresh. You need to follow what’s going on in reality and check with your prediction in the plan. So, you must change your plan after some period of time to align your predictions with reality.
Be careful about too much formalization. The formalization can bring several dangers for the business planning process that can damage the whole business. More about this you can read in Dangers When Planning Your Business Plan.