Have you ever felt the pull to be your own boss? How about the urge to roll the dice and see how you would do when all the responsibility rests on your shoulders? Do you need to forecast and project what the future market will have in store for your current business? Maybe you need to nail down your company’s goals and objectives once and for all. Perhaps you’re trying to raise money for a stated project or business? Any these instances make for a great opportunity to write a business plan and as fate would have it (jk, we planned it this way), December is National Write a Business Plan Month.
A 2010 survey conducted by Palo Alto Software founder Tim Berry discovered that of the 2,877 people who participated in the survey, 995 had completed a business plan compared to 1,556 who had not. Of the group of 995 who completed a plan, 36% secured a loan, 36% secured investment capital and 64%(!) had grown their business. The statistics for the non-completed business plan group concluced 18% secured a loan, 18% secured investment capital and 43% had grown their business.
Certainly, there are more factors in play which would determine the success or failure of a business venture, but it seems fair to say completing that business plan does help. The U.S. Small Business Administration has some good resources on collecting business data and statistics to help you get started with your business plan.
Additionally, we sourced some good tips from Forbes (5 Tips for a Great Business Plan), Entrepreneur Magazine (Expert Advice: 10 Tips to Craft a Strong Business Plan), and Small Business Trends (7 Ways to Make “Write a Business Plan Month” Work for You). Some of the tips are what you might expect (set goals, make a sales forecast, etc.), but there is good information in here on what to do and what not to do if you’re thinking of sitting down to write your plan.
As you’re developing your plan, we’d encourage you to consider the insurance implications and requirements as well. If you have questions along the way, we’re more than happy to discuss them with you. Feel free to reach out to questions@clhins.com or call 636.391.0700 to speak with an agent.