1. Read the text a roadmap to success

1. If you want to get to your targeted destination as quick as possible then a business plan is essentially a map to help you do that. Ideally, it gets you from a starting point to the goal: from your basic business concept to a healthy, successful business. It gives a clear idea of the obstacles that lie ahead, and points out alternate routes.

2. Many people view the business planning process as a chore; in fact, it is an opportunity. While creating the business plan, you have the chance to:

• Learn about industry and market.

• Gain control over business.

• Obtain a competitive edge.

3. Learn your industry and market. One of the major benefits you’ll receive from developing a business plan is getting to know your industry and market thoroughly. Even a small amount of information in this area can make a difference.

4. For example, one new entrepreneur, in the course of developing a business plan for his print and frame shop, learned that his *target customers¹, middle-class women in the age range of 28 to 45, preferred Impressionist paintings and the colors blue and mauve. As a result, he chose a well-known Impressionist work as his company logo, and he always keeps a blue or mauve print in his window. This entrepreneur learned about his market and acted on what he learned. Business is booming.

5. Get control of your business. The business plan process also helps you, as the most responsible for the growth of your company, gain more control over both the short-term and long-term progress of your business. While developing your business plan, you will increase your understanding of the many forces that have an impact on your company’s success, which in turn will give you a stronger sense of control. A business plan provides mechanisms to enhance your management in these areas:

"It's easy to sit in an office and think up a brilliant strategy, but you have to be able to execute it. The deciding factor of a plan is really whether it can be executed. We kept looking for what we could do, rather than what we wanted to do." Larry Leigon, President, Ariel Vineyards

• Marketing. By developing marketing plan based on a well-defined target market and evaluation of your industry and competition.

• Operations. By evaluating and establishing the procedures, labor deployment, and work flow necessary to run your business from day to day.

• Finances. By realistically projecting cash flow, income and expense, *break-even points², and by creating channels of information to keep you fully informed of your financial picture.

• Long-Term Development. Setting specific goals and objectives; identifying milestones; devising an exit plan, if appropriate; and determining how will the position of your company respond to both internal and external changes.

6. Obtain your competitive edge. By evaluating and refining your business concept through the planning process, you will be far more effective when you attempt to convey your message to your target market. Your message will be clearer, and customers will be better able to distinguish your company from the competitors. Evaluating your competition and your company’s strengths and weaknesses provides you with a better sense of how to position your company in relation to competitor’s. Focus and consistency give you a competitive edge.