Construction Business Plan Page 9
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142.
Developing a Business Plan
Introduction to Business Planning
What is a
Business
Plan:
The primary
value
of your business plan
will be
to
cerate a written outline that
evaluates
all aspects of
the
economic viability of your
business
venture
including a description
and
analysis of
your business
prospects.
A
business
plan
is
an essential step
for
any
prudent
entrepreneur
to
take,
regardless
of
the size of the
business.
This
step is
too
often skipped
but the
discipline
required
to
develop
a
plan
will
impact
your ability
to
succeed
not only in the
short-term
but also over
the long
term.
Business plans
can
vary
enormously.
They
can
range from
a
one page outline
or a
comprehensive
document
including
detailed market
analyses,
competitive
analysis,
and
three-year financial
projections.
Many concepts for a
new
business can
take
shape on
something as
primitive
as a
cocktail napkin
similar
to
what
Herb Kelleher did
when he
first conceived his
idea
for Southwest
Airlines.
Why Prepare a Business
Plan:
Your
business
plan
is
going
to
be
useful in
a number of
ways.
Here
are some
reasons
not to
skip
this valuable tool.
• First
and
foremost, it will
define and
focus
your
objective
using appropriate
information
and analysis.
• You
can
use
it
as
a
selling
tool in
dealing
with important relationships including
your
lenders,
investors
and banks.
• You
can
use the
plan to solicit opinions and advice from
people,
including those
in
your intended field of
business,
who
will freely give you
invaluable
advice.
Too
often,
entrepreneurs
forge
ahead
("My
Way!")
without
the
benefit
of
input from
experts
who could save
them
a
great deal of
wear and tear. "My
Way" is
a great
song,
but in
practice can result in
unnecessary
hardships.
• Your business plan
can
uncover
omissions and/or weaknesses
in
your
planning
process.
What
to Avoid
in
Your
Business
Plan:
Place some reasonable limits on long-term,
future projections.
(Long-term
means
over
one year.)
Better to
stick with short-term objectives and
modify the plan
as your
business
progresses. Too
often,
long-range
planning
becomes meaningless because
the
reality of
your
business
can be
different from
your
initial
concept.
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