Looking for a business plan that gets results?
Most plans end up forgotten in a drawer. People spend weeks making them but rarely use them after. What a waste! Here’s how to create a plan you’ll really use as you build your business.
Why Most Business Plans Fail?
Fancy, long plans don’t help real businesses. They try to wow investors, not guide daily choices. Moreover, TD Bank found 18% of business owners rarely look at their plans. Crazy, right?
CB Insights shows 70% of startups fail within 20 months. Their plans didn’t match real life.
For instance, look at Blockbuster’s fall against Netflix. Blockbuster couldn’t adapt to streaming and new viewing habits. Meanwhile, Netflix changed from DVD-mail to streaming to making shows. Their simple plan let them evolve.
Start With a Problem Worth Solving
Good businesses fix real problems. Before spreadsheets or marketing plans, ask:
- What problem are you fixing?
- Who needs this solution badly enough to pay?
- Why is your fix better than others?
Harvard Business School found 42% of startups fail because nobody wanted their product. Consequently, talk to real people first!
The Journal of Small Business Strategy shows businesses that check customer needs before launch succeed 60% more often. As a result, customer feedback builds your strategy backbone.
Know Your Customers Deeply
Forget vague targets like “women 25-45 with money.” That tells you nothing! Dig deeper:
- Which websites do they visit?
- What frustrates them now?
- Why would they tell friends about you?
The Spanx founder knew exactly when existing products failed women. She didn’t just see “people wanting smoother silhouettes.”
Visit forums where potential customers hang out. Additionally, read Amazon reviews of similar products. Gold hides in the complaints! Furthermore, these real voices give you marketing language your competitors miss.
Research Your Market (But Don’t Overdo It)
Know your market without spending months researching. Focus on:
- Market size (potential customer count)
- Growth trends (expanding or shrinking?)
- Competitor strengths and weaknesses
Tools like SEMrush help spy on competitor strategies. Meanwhile, the Small Business Administration offers free research resources too.
I’ve seen people stuck in research paralysis. Nevertheless, perfect research isn’t needed! Just gather enough info to make smart choices.
Create Believable Financial Projections
Here’s where most mess up. They dream of millions by year two, then abandon the plan when reality hits.
Instead:
- Start with costs – what will running this business really cost?
- Make conservative revenue estimates (then cut them 25% more)
- Include a “survival scenario” – what’s the minimum to stay afloat?
Your numbers should pass the “straight face test.” Can you discuss them without laughing?
LivePlan helps with calculations, but don’t trust default templates. The Journal of Business Venturing found entrepreneurs who regularly update financial projections are 35% more likely to get funding.
Treat projections as living documents. In other words, they should evolve as you learn, not become rigid targets.
Your Marketing Plan: Get Specific
Ditch the marketing buzzwords. Nobody needs that nonsense! Be concrete:
- How exactly will people find you? (Which specific platforms?)
- What message will grab their attention?
- How much will acquiring each customer cost?
- What’s your plan for repeat business?
A Content Marketing Institute study found businesses with documented marketing strategies succeed 3x more often.
Many founders focus too much on product and neglect marketing. However, successful businesses build marketing into their DNA from day one.
Operations: Boring But Vital
This part shows how you’ll get your stuff made or job done each day:
- What tools or goods do you need?
- Who does what work? (Even if it’s just you wearing many hats)
- What might go wrong? How will you handle it?
- What parts will you hire out vs. do in-house?
As shown by the Small Biz group, firms with backup plans are 2.5x more likely to ride out hard times.
Work plans get less focus than fun parts like ads. However, these dull details often make or break you.
Create a One-Page Summary You’ll Actually Use
After completing your full plan, make a one-page version with just:
- Your core customer and their main problem
- Your solution and why it’s special
- Top 3 yearly goals with specific numbers
- Major milestones with deadlines
- Key expenses and revenue targets
This one-pager becomes your daily guide. Meanwhile, the full plan provides deeper details when needed.
Babson College research shows companies checking progress against plans grow 30% faster. Despite this, nobody reviews 50-page documents regularly!
Get Brutally Honest Feedback
Your plan has blind spots – guaranteed! Show it to truth-tellers, not yes-people.
Ask them:
- “Which parts seem unrealistic?”
- “What important things am I missing?”
- “Where would you hesitate if considering investment?”
Startup Genome reports startups seeking regular feedback are 80% more likely to survive their first year.
Your Plan Is Wrong (And That’s OK)
Here’s the truth – all business plans are wrong because nobody predicts the future perfectly. The point isn’t perfection but thinking through possibilities to adapt quickly.
According to the Kauffman Foundation, 87% of successful businesses end up with strategies different from their initial plans.
The folks at Strategyzer call this “making a plan that works” not “trying to see the future.”
As a result, set up monthly checks to see how your plan meets real life. Afterwards, fix what needs to change.
Final Thoughts: Just Go For It!
A good plan you use beats a great plan you don’t. Don’t get stuck in endless planning.
Mike Tyson said, “All plans fail at first punch.” Your firm will face shocks. Your plan is just where you start.
The Stanford group found firms that shift plans each three months grow 37% more than those who stick to yearly plans. Being quick to change helps you win.
Look at Amazon’s path from book store to all-things store to cloud giant. Bezos first just sold books, but his will to try new things built a huge firm.
Or see Slack, which started as a game firm called Tiny Speck. When the game failed, they flipped their team chat tool into a work tool worth billions. Seeing when to drop the first plan saved them.
Make your plan. Use it to guide you. Change when you need to. Then start to build! Doing beats planning. A so-so plan done well beats a great plan done badly.
Remember that guy who spent two years on his app plan? My friend made a like app in 3 months with a quick plan, got real input, and made it better twice before the other guy even got started. Don’t be that guy!
