Have you ever driven to a new place without a GPS? Have you
ever planned a party without making any notes on the things you are going to
buy? Just imagine these situations if you have not experienced them. In both
situations, I think is possible to get a positive outcome, you eventually reach
your destination or have a great party, but can you imagine the waste of resources?
I would call these situations “trying to operate in the darkness”
unnecessarily.
These are simple comparisons we can also apply in business. It
is nearly impossible to operate a successful business in the darkness. Out of
10 business owners I talk to, 9 did not write a business plan before starting
their businesses and they seek advice only after they hit a wall or struggle to
continue their growth.
Writing a business plan makes any business owner 2.5 times
more likely to succeed from the ones that do not write one. You don’t want to
be lost in the middle of a highway hoping and praying it will take you to your
destination. Working on a business plan will make you think on what you have
and what you need, and that exercise will save your valuable resources
especially when you are starting a business and every dollar counts.
Here are 4 powerful reasons to make you consider getting a “business GPS”.
You will come up with
a solid Elevator Pitch
When you start defining what your product or service is, you
need to explain it so clearly that a potential customer can explain it to you
if you asked him. If you are selling puzzles for children, probably they will
be somewhat easy to describe, but if you are selling financial advice or
insurance, it won’t be as easy. Remember the best way to land a sale is
explaining the benefits of your product, so with puzzles you are actually selling
memory improvement and heightened creativity, and with insurance you are
selling peace of mind and security. People respond to products or services that
solve their daily problems, and that starts by your audience understanding and
remembering what you sell, so a good elevator pitch can also increase your own confidence
in your products or services and start putting the good word out for you.
Your business idea
will be backed up by data
The key to a good business plan is research. You want your
office, store, or product display to be in front of the eyes of your potential
customers. So, you need to find out whom these people are and where to find
them. Depending on your budget, you can use the many online free tools such as US Census or Sizeup
websites, or you can buy a subscription to ESRI or IBISWorld
for example.
You will have a
better idea on what you are getting yourself into
Over time, you develop skills that can be put to good use in
any industry, but some other times you need specific expertise and good
instinct that can only be developed with constant practice in that field. Working
on your business plan will make you think on specific steps you need to take
and project yourself and your company in 3 to 5 years time. When you plan those
specific steps, you will have another chance to think if this is something you
see yourself doing. You don’t want to be stuck running a company in an industry
you didn’t know from the very beginning, or much worse you don’t enjoy.
You will be taken
more seriously
You can come up with business ideas, but when you put them
on paper and start thinking on how to turn that idea into a reality, two things
can happen: you can fall in love even more with that idea, or you will have to
forget about it. Let’s face it: we all want to know if we are in love at some
point. So, go figure out by yourself and work in that effort that will pay big
time. You will be taken more seriously, first, by yourself, and by the people
who heard you talk about your idea probably more than once.
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