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Why You Need A Business Plan

If you want to go somewhere, you need a roadmap or directions. Without a map or directions or even prior knowledge of how to go, you have a hard time getting anywhere. You might also need a vehicle or have to take a hike! You need to know how much fuel you will need. You may want to know how quickly you need to get to your destination. You need to know a lot.

Your Plan provides you with that “map”. It shows where “somewhere” is. And how you will get there. How much fuel you will need. It tells you where the rivers and streams are, and where the roads to wealth lay.

You may have been operating by innately planning or creating the “map”, but an actual plan will help you put all the pieces together to run more efficiently and profitably.

The pieces of your plan can include your goals, competitive situation, and pricing review, point of difference, strategies, and tactics. Any format can work, as long as it works for you.

If you do not know where you are going, you will never get there! Your destination must be clear. Your goals need to include specifics – especially numbers and dates. Goals and objectives need to be measureable. You need to be able to gauge your success. Remember, “Only that which is measured can be Improved!”

Know thy enemy! Your competitors are the enemy. The more you know about them, the better you can win over them. Know their pricing so that you can compete against them. Figure out why you are better than your competition. It is your point of difference.

Strategies are your vehicles on the road to success. They are the broad methods you use to reach your goals and objectives. Each and every one of your strategies must be in furtherance of you meeting your goals. If it is not, then it is not a valid strategy. Your strategies are broad and can be very general or more specific. Your strategy could be “advertise”. Another could be “hire a sales force”. Or “open a storefront”. Or “open a web store”.

Tactics are the tools that you use within your strategies. Every tactic must come from a strategy. Otherwise, it does not advance your trip to your goals. Tactics could include specific actions, timing, and budgets.

For example, a tactic could be “Advertise on local radio stations XYZ for 4 week flights every other month starting 1/2/18, with a budget of $45,000”.

Having clear tactics, strategies and objectives are keys to a good plan or “roadmap”. A solid competitive overview outlining the “battlefield” gives you the solid foundation on which you can build your business.
Whether it is called a business plan, strategic plan, business outline, or “just something you put together” in order to grow your sales and profits, you must have some sort of Plan.

Presented By;
Larry Goldsmith, President/Owner
LRG Business Consulting

Larry has over 40 years of business experience with more than 10 years as a successful consultant to small businesses in the S.E. Valley. He is married with 2 grown sons and 2 grandchildren and a proud resident of Gilbert, AZ.