Part I
Laying the Foundation for Your Plan
In this part . . .
Having a business plan – which means writing a business plan – is the best way to turn your great idea into a thriving business.
The chapters in this part turn you into a business-plan convert. They present the case for why a plan is important, walk you through the process and guide you as you take the first steps towards creating a business with a long and prosperous future.
We provide tips on how to come up with a winning business idea and steps for conducting a reality check to make sure that your idea is worth pursuing. We also help kick off your planning process and offer a guided tour through the essential elements of creating your business’s mission, vision, goals and objectives.
Chapter 1
Starting Your Planning Engine
In This Chapter
Understanding the contents, use and value of a business plan Identifying the people who are going to read your plan Setting your business time frame and milestones Launching the business-planning process Because you’re holding this book, the task of writing a business plan has probably made its way to the top of your to-do list. Now you want to know what’s involved in the process and which actions to take first when writing your business plan.
Well, that’s exactly what this first chapter of Business Plans Kit For Dummies, UK Edition, is all about. It confirms your hunch that business planning is not only important, but essential, both when you start your business and at every growth stage along the way. Plus, it helps you think clearly about why you need a business plan, who your business plan is for, what key components you need to include and what time frame is reasonable.
Writing a business plan is a big task, but this book makes it manageable, and this chapter provides a quick and easy overview to get you oriented and on your way to business-planning success.
Committing to the Business-Planning Process
With a thousand issues clamouring for the precious hours in your day, committing time to plan your business’s future isn’t easy. But operating without a plan is even harder – and even more time-consuming in the long run. You took the most important step when you made the decision to write a business plan. Now you need to convert that decision into action – starting by dedicating your time and effort to the process.
As you carve time out of your calendar, these two steps are going to keep you motivated:
Define your business situation and how a business plan can help you move your business from where it is to where you want it to be. List the ways that a business plan can heighten your business’s odds of success. The next two sections lead the way.
Defining your business-planning situation
To get your business where you want it to go, you need a map to follow, which is what your business plan is all about. It starts with a description of your current situation; describes your future plans; defines your opportunities; and details the financial, operational, marketing and organisational strategies you’re going to follow to achieve success.
Take a minute to think of your business as a boat about to set sail on an ocean race. Your business plan defines your destination and the route that you’ll follow. It details the supplies and crew you have on board as well as what you still need to acquire. It forecasts the cost of the voyage. It describes the weather and sea conditions you’re likely to encounter along the way and anticipates the potential dangers that may lurk over the horizon. Finally, your business plan identifies the other crews that you’re up against and their strengths and weaknesses. The same kind of planning is necessary on dry land. To navigate a new course for your business, you need to start with an assessment of where your business is right now – in other words, what current business situation you want to address or overcome. You need to define where you want to arrive and what strategies you’re going to follow to get there.
To define your current business situation, use Form 1-1 on the CD-ROM. It lists some of the many situations t... 
