Ask Tim Berry: “What is a business plan?”

Ask Tim Berry: “What is a business plan?”

So what’s a business plan? How do you do one,
how do you get one done for you? Let’s talk about what it isn’t. It isn’t some damn document
that you acquired over the Web to get over some hurdle that you had to have a business
plan. It’s not like you have to have a term paper and now you’ve got one and you turn
it in and whew! At least I had a term paper I hope gets a C. A business plan is what’s
going to happen in your business. That’s what it’s about. And, you might be able to find
something like coaching to help, somebody who has experience to help guide you through
what’s supposed to happen, but the idea of having somebody write a plan for you or worse,
you’re gonna buy it, or you’re gonna get some sample plan and change the names and now I
have a business plan? That’s, that’s crazy! That’s baloney. Your plan is always unique
to you. It’s not a document, it’s what you want to have happen, and it’s not predicting
the future, and you don’t follow it just because you follow it. You use it to manage the change
that happens all the time in business so that, when one thing like sales is more than expected
in one product and less in another, because you have a plan that ties that to your strategy
and your specific milestones and your tasks, your cost of goods for each product and your
expenses, you can adjust to the change between what you thought would happen and what actually
happened, quickly, because you’ve got a plan which is alive, flexible and helps you manage
the ongoing change of your business. It’s almost like steering. You hold the steering
wheel but even in the straightest highway you’ve ever been on you’re still constantly
making corrections. That’s the planning process, that’s how planning is management.

Comments (1)

  1. Great talk; A business plan essentially puts your ideas into words and also lets you critically understand all the aspects of your idea. Sometimes an idea may be great in our head, but you make be plan about concepts such as marketing, financing, etc.

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