How important are business plans?Â
Do you think you need a business plan for your small business?
Yes.Â You need a business plan for your small business.Â You just do.
As the U.S. economy continues to put pressure on everything we do, your business might not have the strength to manage these tough times.Â
Hopefully you have a plan to ride out these tough times and a plan to be a successful business owner.
I’m not trying to sell you our services on business plan writing ratherÂ trying to drive the point home that business plans are very important to our small businesses.Â They just are.
Sure you can hire a business plan writer who will charge you anywhere from $3,000 to $15,000 for something so basic and important, or you can get a business plan template from Google for aboutÂ $100 bucks.
Is it the same thing?Â It sure is.
So why is a business plan so important?
It’s important because it takes all the things you know about your business and all the things that are happening in the macro economy and puts it all together in one place for you to use as a guide.
Sure you know everything about your business, but you don’t know allot about what is going to affect your business.Â That is why business plans are so important.
They allow us to see how our business reacts with the outside forces that will make or break your business.Â No matter what your business is, it will be pressured by external forces.
It is a fact that all business, small, medium and large are affected by the macro economy.
For example, if I am a restaurant owner, my business will be affected by consumers not going out to eat because buying a gallon of gas is probably more important these days.
Sound odd?Â Look at Starbucks.
Two weeks ago, Starbucks announced less than expected earnings due to declining sales.Â In the same announcement, Starbucks mentioned they will be closing underperforming stores.Â
And on a related topic, Starbucks also announced that it will begin selling a small cup of coffee for less than $1.00.Â Yup, less than a buck for a cup of Starbucks coffee.
Why do you suppose Starbucks is taking such a stance?
Because it is being pressured by less consumer spending via less disposable income by consumers.
In other words, we would rather buy a gallon of gas than a Frappacino.
Disposable income is the money consumers have left over after paying for the essentials of life such as mortgage, taxes, andÂ a gallon of gas.
Starbucks is also being pressured by McDonald’s who recently announced they will take a shot at having gourmet coffee bars in some of their stores.
So, do you think Starbucks has a business plan?Â
Now they do and so should you.Â You just should.Social tagging: General Business > Small Business