An Essential Element of a Successful Business: A Business Plan

Suncoast CFO Consultative SolutionAt the forefront of every successful business is an entrepreneur with a passion for an idea or concept to produce and deliver a product or service that is unique and satisfies a need in the marketplace.   Entrepreneurs are constantly thinking about how to create value and build new businesses, or how to improve or transform existing organizations.

The landscape is covered with good business ideas that have traversed the many obstacles a young business encounters as it brings to market its innovative concept, and develops and evolves the concept into a successful business, supported by a solid business organization.

At the same time, there are countless examples of businesses with good innovative ideas that did not survive the risks of a startup business in its early years.  There are numerous reasons for failure or lack of success in start-up businesses; the most common include:

  • the business product or service is not adequately differentiated from competition
  • lack of market demand for the product or service
  • lack of proper funding
  • poor execution of business concept
  • inadequate resources devoted to the business

Although a small business cannot avoid the risks, uncertainties and rigors of moving its business forward, there is a process that can help avoid some mistakes, anticipate potential obstacles, and reduce the amount of uncertainty with respect to the direction of the business — constructing a well-thought-out Business Plan.

When studying successful businesses, the common elements include not only an underlying innovative business concept that is unique to the marketplace, but also a managerial discipline working in concert with the entrepreneur. This managerial discipline provides balance to the organization and enables an efficient and effective environment to build and manage an infrastructure to produce the value to its customers as envisioned by the entrepreneur.

The careful creation of a Business Plan will not only capture the underlying spirit of the innovative and creative ideas of the Entrepreneur, but will also contain the deliberate and thoughtful approach of how the business will deliver the concept to its customers and build a sustainable infrastructure to support its growth.

So what is a Business Plan?  A Business Plan is an essential roadmap for business success.  The document is the outcome of an important business process that is carefully constructed after much thought and research, highlighting the 3-5 year plan of the business concept, how the concept is different in the marketplace, detailing the route the company intends to take to reach its stated goals and objectives, and periodically revisited and revised to reflect the learned operating realities from recent operating history.

The Business Plan becomes the foundation for many of the business organization’s most important decisions.  The Business Plan is the basis for budgets, helping to ensure that the business achieves its financial goals. Strategic decisions should also be made with the Business Plan in mind.  Does the decision being considered advance the business toward the goals in its Business plan; is it the best route toward achieving its goals? Once the Business Plan is established, if it is consistently maintained and utilized, it is a powerful tool for business success.

Suncoast CFO Solutions provides an affordable solution for small- to mid-sized businesses operating without the role of a CFO by offering part-time CFO services tailored to the needs of the business.  To learn more about how a Business Plan can impact your business results or other ways we can add value to your business, contact us for a free consultation or, for a nominal fee, an in-depth Business Analysis of your business.