Crafting a Winning Strategy: Essential Business Planning Tips for Small Business Success
Anyone can have a good idea, but what transforms a good idea into a business?
That would be strategy.
And what exactly helps set strategy into motion?
That would be a business plan.
When you start out, it doesn’t have to be big
In the early stages of planning for a small business, your first steps don’t have to be huge. There may be any number of factors to consider and think through, but if the groundwork seems too complicated, then maybe it’s time to break it up into smaller bite-sized bits. Rome wasn’t built in a day. Your business won’t be either.
Distill the necessary elements
Successful business plans don’t need to be 80 pages. They don’t even need to be 20. In fact, keeping a business plan short and to the point can be your best ally, especially when you’re ready to present it to possible investors. Showing that you’re able to distill the most crucial elements of your business and including them into your plan will get you started off (and moving) on the right foot.
Understand your market. What are you up against?
Often, these initial stages can be full of sweeping moments of hopefulness and a simultaneous feeling that the mountain is, in fact, too great. Like we said earlier, break it down. Take it step by step.
In the beginning, it may be best to simply outline what your business would do for the world and gauge where that might fit into the greater scheme of things. Is there a business in the current marketplace now that looks like the business you are starting to grow? If there is something similar, be clear on how your business will be different.
Gather what information you can and take an honest look at your findings. If you are someone who may be too emotional early on, enlist the help of someone who may be able to gauge things with a more objective eye. This part of the process takes perseverance. Don’t give up just yet.
Sharpen your pencil
Now is the time to get started on that business plan, and here’s where you can begin to outline your strategy. Generally, a business plan that is well written can help you get your foot in the door to secure a small business loan. Include details about your business’s mission statement, an executive summary, an analysis of your competitors, financial planning, a description of your product and/or services, the background of your company, how you imagine operations will run, and a plan for your marketing campaigns.
If one thing is for certain, sitting down and getting pen to paper (or fingers to the keyboard) will help you become very (and we mean very) clear on just what your aim is. When you’re typing out a business plan, you can’t fudge the numbers or take educated guess and hope “that it works.” Writing a business plan eliminates vague understandings, unfocused thinking, and messiness.
Get everyone on the same page
Your strategy may make sense to you if you’re the only one in business, but how many people actually start a business completely by themselves? (OK, some might. If that’s the case, involving trusted advisors who can think strategically and creatively will be beneficial to your business plan.)
That’s another added benefit of opening shop with others on board. When there is a founding team involved, a business plan will certainly help unite the overall vision. Whereas before you may have had one idea and your fellow mastermind may have had another, a business plan must be a marriage of the best ideas you all have collectively. Like a contract (though business plans are certainly meant to morph and change over time), you and your teammates at least have something down on paper. There is some kind of boundary to keep you all moving forward...and moving forward on the same page.
Set goals, but also keep dreaming
What are your goals?
What are the milestones you are seeking?
At the beginning, when you are starting out with small business strategy, it can be easy to become wrapped up in the day to day. How much money is in the bank account now. How many employees you should hire. How much rent will cost. How much it will cost just to keep the lights on. Staying practical and also continuing to dream big are two ideals you will need to learn to be comfortable oscillating between. Just because the reality looks like this now doesn’t mean it will always be this way.
Practicality may serve you well, but so will dreaming a bit. In starting a small business, you need those big ideas. You need the gusto of dreaming. Don’t stifle your good ideas with too much oversight.
Though, we should mention, business sense is important, too.
The best approach? Find a comfortable balance between the two.
Be smart with your business planning, but don’t overthink it. Those who get started are the ones who eventually get somewhere.
If you’re thinking about getting a small business loan to help you grow, we’re happy to join you in that discussion. Or check out our Small Business Financing Guide to start exploring products that might work for you.