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The Importance of Creating Your Business Plan in Dec

The Importance of Creating Your Business Plan in Dec

This month is the perfect time to update your plan whether your business is one or one hundred years old. Most founders and CEOs do this when their business is starting out or when they require funding, but truth be told, this should be executed every year to make sure you know where your organization has been and where it is going in the coming year.

7 Essential Business Plan Elements

Executive Summary: This should be written last as it highlights the key points in the document. It should highlight your company vision, mission and key changes from last year’s plan.

Market Analysis: This is where your research goes, including your Strengths, Weaknesses, Opportunities and Threats (SWOT) compared to your major competitors. You also want to evaluate your four Ps – Pricing, Promotion, Products and Positioning. Adjust accordingly.

Company Description: This part encapsulates who you are, what you do and what makes your organization unique.  This is where you identify your current client profile, as well as, the prospects you are seeking.

Services and Products: What you currently offer, what you are planning to launch and discontinue in 2019.

Funding Required for New Products/Services if Needed: Are you looking for funding? If so, what kind and how much?

Three to Five Year Financial Projections: Include your P&L statements, with and without the funding requests.

Leadership Team: Identify who’s in the C-Suite, along with titles and responsibilities, and contact information.

Benefits of a Good Business Plan

  1. Provides a clear vision for the next twelve months.
    As the saying goes, “Your destination is on the horizon and everyone is rowing toward it.” Sharing this vision with your employees will help them get excited for the future. Prioritize your initiatives through SMART goals (Specific, Measurable, Achievable, Realistic and Timely). Here’s an example:

S: Grow sales revenue in 2019
M: By 20 percent, year-to-year
A: Yes, need to hire one more sales rep, upgrade CRM system and migrate all reps over to tablet rentals
R: Yes, if receive funding
T: Yes

  1. Helps get the funding you require.
    With minimal tweaking you can take the same plan to the corporate office, multiple investors or the bank.
  2. Identifies hidden opportunities and threats.
    The most successful businesses are the most agile and forward-thinking ones. Take Amazon and Netflix versus Blackberry and General Motors. The former identified and continue to seek out market changes while the latter reacts to them.
  3. Great jumping off point to share with clients.
    While everything isn’t shareable, you can use elements of the plan to create a PowerPoint or portfolio presentation. This will get them excited about where you’re going and allow them to give you feedback.  They can also identify things you may not have thought about, which will make your plan even stronger.

Hartford Technology Rental Can Help with Your Business Plan

As your company grows, we have the experience to deliver the latest technology to your doorstep. We are agile and can adapt to your needs at a moment’s notice. We are also available 24/7. Hartford Technology Rental serves every U.S. city and has distribution centers in Chicago, Washington DC, NYC and LA. Give us a call at 888-520-5667. We can help with your 2019 business plan budget!