Business Plans

According to business guru Phillip Thow, business plans are the lifeblood of any business, there is just no avoiding it. Many business owners spend time obtaining corporate credit, but fail to spend the right amount of time on a business plan. But, business plans shouldn’t be looked at as a chore, or just a means of getting financing. No, business plans function as the instruction manual to not just start your company, but to maintain it throughout its life cycle. It is the opportunity to clearly think out your strategy and to quantify why your idea is a good one, not only to yourself, but to potential stakeholders as well.

Think of business plans as maps, or charts, if you happen to be a boater. They are the guide to a destination without which you would be lost, floundering and helpless in a sea of competitors. They are competitors who had the foresight to follow their maps, and adjust their course accordingly. Ok, enough of the sailing metaphors! Phillip Thow teaches that business plans force you to think out every aspect of your business, from why it is needed to how it will succeed. Good business plans cover the entire life span of the company from the inception of the business through expansion, and ultimately even how you will exit the business.

Business plans are more often than not seen as an instrument to obtain financing. While that is certainly true, businesses that ultimately fail are usually ones that did not follow their own plans once financing was achieved. Phillip Thow says use this mindset, you are writing the business plan for you…not the bank or investors. You should re-visit your business plans regularly, whether it is quarterly, semi-annually, or annually. And, you should always adjust the plan once a year as necessary. This is of the utmost importance if your business is to succeed long-term according to Phillip Thow.

There are many different schools of thought on how to write business plans. The truth is there is no silver bullet. Knowing the structure of how to write a business plan is not as important as the data you put into it. As long as you are honest and realistic about the goals of your business, the quality of your plan will certainly show through. Keep this in mind, if your business plan keeps getting rejected by financers, something is wrong and you need to re-evaluate. Phillip Thow urges you not to worry if this happens. Take the time and do it right.