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or later every fictional adventurer faces a challenge for which there
is no precedent. As Indiana Jones often demonstrated, sometimes the
only secret to getting out of danger and into success is to "make
it up as I go along." The real world of business is also filled
with moments when new paths must be made up as we go along. Successfully
following these paths requires the basic heroic elements of courage,
creativity, and resilience. But as more and more courageous, creative
and resilient business wannabees (and their investors) have found,
an ability to "make it up as I go along" does not substitute
for a sound business plan.
A great business plan will support -- not inhibit -- your creativity
and sense of adventure. While a business plan may require disciplined
and often detailed work (particularly in developing market research
and sound financial documents), the work of developing a plan can
be fascinating part of your business adventure.
There's actually no great mystery about writing business plans.
The Small Business Administration (SBA) has already devised a perfect
outline (see www.sba.gov). The SBA and many small business development
organizations are loaded with information and connections to people
who can help you. This information, drawn from classes on business
planning I have taught for the Oakland and San Francisco SBA, is
designed to supplement SBA and other resources.
Secret #1: Understand and appreciate the importance of a business
plan -- even if you don't need to raise money for your business
A business plan is designed to help you minimize costs while maximizing
efficiency. Your plan can help you select the right employees and
stay on track towards your goals. Working on your plan is also a
way to discover which one of the following statements is true about
you and your potential business:
a. My business idea isn't as feasible as I thought. Isn't it wonderful
to discover that before I sink a lot of time and money into something
that's not really workable!
or
b. Whether or not my business idea is potentially profitable,
it's not for me. Isn't it great to know what I don't want so I can
be a little clearer about the business or vocation I really want!
or
c. Wow! I really do want to build this particular business! I
know what steps to take to make my business succeed, and I'm ready
to do whatever's necessary to turn my business idea into reality.
Secret #2: Before you plan, envision exactly what you want to
create
Let your imagination fly and dream big. Research what it would
take to create this draft vision, then discern whether or not you're
willing to pay the price. Redraft your vision based on what you've
learned. Keep repeating this cycle -- dream, research, discern --
until you know clearly what kind of business you want to build and
you can communicate your dream to others.
Secret #3: Be sure your goals reflect your desires, your talents,
your values
Life is too short to spend chasing someone else's dream, too long
to spend in a business you choose only because it seems feasible.
The deeper the resonance between your heart's desire and your goals,
the easier it is to summon the energy, the passion, the creativity,
the charisma to create a satisfying and thriving business.
Secret #4: Determine your research needs and be resourceful to
find credible information about your field and market
Then ask yourself, "Who else needs to know this information?"
For example, you want to make money selling wedding photographs.
You want to know if this field is already crowded or has room for
you, whether the market is expanding or contracting, and what types
of wedding packages are likely to be most popular over the next
ten years. Some people who are likely to also need this information
are newspapers that produce yearly wedding planning guides and wedding
planners.
Also check census surveys and government information so you know
whether your area is likely to have fewer or more people of marrying
age over the next ten years, and whether they have sufficient income
to buy your products. Be sure to check out cultural and ethnic trends.
What sells in San Leandro will not necessarily sell in Piedmont,
even if incomes are the same.
Secret #5: Use up-to-date information from neutral sources
In the example above, information from the wedding planners association
and a major newspaper are considered more credible than photography
associations.
Part 2 of this article: Secrets #6-#10
Pat McHenry Sullivan (visionpat@aol.com)
is president of Visionary Resources (www.visionary-resources.com),
a firm that provides tips, tools and resources for meaningful and
satisfying work and life. Her first business plan in 1990 helped
a photographer quit her day job and open a successful studio. The
plan was selected by an Idaho bank as a model for how to write business
plans. Pat has taught classes on how to write business plans for
the SBA since 1997. She is the author of many articles on business
and work, including "Vision and Values" columns for the San Francisco
Chronicle. Call Pat at 510-530-0284.
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