Business Plan - Why They Could Be Crucial To Success
A business plan - probably something that many small business have not embarked on developing. What about us at Wealthy Affiliate Network? Do we need one? Or is it only for the big players in town?
I have been thinking a lot about this subject of late, especially in relation to my new direction as an online marketer. Over the past year or so, I have been following the training and guidelines here at WA and slowly my website has evolved. Did I have a business plan at the beginning? No, I didn't. This was going to be part time hobby that in time would be a passive income stream. Seems I had things a little askew.
Maybe I didn't take that as seriously as I should have, sort of like the image below.
How A Business Plan Could Help
The problem many have with developing a business plan is that they are not chasing a business loan or investor funding, which some believe is the only time you need a plan. I guess that was a reason I didn't have one - I wasn't going to hit up the bank (legally) for some cash to get the thing started.Note what Stever Robbins said in an article at Entrepreneur.com"In fact, a business plan is much more than that: It's a tool for understanding how your business is put together. You can use it to monitor progress, hold yourself accountable and control the business's fate. And of course, it's a sales and recruiting tool for courting key employees or future investors."It could be likened to what a mission statement does for the overall attitude and operation of a business. While a mission statement is more of the values-based foundation of a business, a business plan is a quantifiable outline of the direction it takes, allowing for useful measuring of the business' progression or regression as the case may be.
What do you think? Have you got a business plan? Would it be useful to have before we begin our Wealthy Affiliate journey? Leave a comment to share your valued opinion.
Till next time,
Recent Comments
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As Chris Guillebeau mentions in his book $100 Startup, many times small businesses start with no business plan, or one as primitive as a few notes on a napkin from a restaurant.
As many of the others have said, I do not have a business plan either.
But, I definitely see a need to at least formulate a planned direction with defined goals for your business.
Otherwise, it's hard to measure the progress and growth of your business. If you don't at least determine the direction you wish your business to take, you may end up swimming in circles and seeing no progress.
You make some very relevant points that make a stack of sense. Measuring our progress can be a very helpful motivation to keep on.
I think my tendency is to try and measure my progress based upon how much money I've earned.
But, at the stage of business I am at, I would have to consider my business a failure because I have not yet made any money.
But, I am making progress...I need to set more goals so I can truly put a measuring stick on that progress.
Otherwise, I am bound to continue looking at my lack of profit and become discouraged.
Yes, Chris, many of us are experiencing those thoughts. No money, no progress. But what knowledge have you accumulated? What progress you've made it developing things to this level! A business plan may help measure things a little further and take away the focus on money.
Like most of us here, I have no business plan either.I see your point and guess it is good to have a road map of how to get there.
Thanks for this encouraging post Duncan. Business plans are important because like maps the show you the way. Without a guide we don't know which 'direction' to go in!
All the Best
cheers Debbie
You have hit the nail on the head...like you the only time I wrote a business plan was when I needed to go to the bank to hit them up for a loan! Now I'll have to rethink this whole shebang!
I have a few notes, but it would make sense to develop them into a proper plan. Thanks Duncan :)
Thank you for this Duncan. You are absolutely right. I certainly haven't set up a business plan for WA and it is like getting lost without a map. Enjoyable meandering but going nowhere. Will get on with it!
That is a good saying, "enjoyable meandering". I guess as we get serious about making money online, we will need to get serious about the plan thing!
I think the beauty of the situation that most of us are in is...we are free to modify our business plans at any time. I haven't formally written one up yet either and probably should.
I do not have a business plan, but reading your blog, it might be sensible to write down a leading plan
Hi Loes. I am thinking of developing a training module on how and why it could be a useful thing to do.
Okay, I will see what I can do. Be patient, though, it will take me some time to get it together.
Yes, but if they are quantified then you are already on track to developing a business plan. You may just have a different name for it, John.
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I have a business plan that I put lots of time developing. My problem is sticking to it. I want to do my web business full time but my other work takes much of my time. I need the income. I am trying hard to phase out of the distracting work, but it is like giving up a security blanket. I know what I need to do it in order to move forward, I just have to stick to the plan.
Yes, sticking to the plan. If it is any consolation, the majority of us are in the same boat. Even sports people don't always stick to the game plan. Sometimes they survive that, sometimes they don't.
I guess the enduring and stick to the plan takes as much courage as developing one in the first place.