I couldn’t resist.
The question was, “What’s so great about developing a business plan for a business?”
Here’s my answer:
What’s great about a business plan starts with something similar to how we feel about having a collection of flight, hotel, and rental car reservations before we take a trip.
The business plan, done right, breaks the uncertainty into manageable pieces.
- It sets the most important elements of strategy, including business offering, target market, and differentiators.
- It sets the most important tactics for execution, and matches them to strategic focus.
- It sets up and defines the important steps for the future.
- It defines the key assumptions and resulting projections for sales, direct costs, operating expenses, and cash flow.
It’s a great tool for moving forward, figuring out what’s important, managing the important flow of tasks responsibilities, and money, and then—on a regular basis—checking results with review and revision.
It’s not the plan that really matters; it’s the planning. But you can’t have planning without a plan.
And here’s where that question and answer took place, on Quora: What is so great about developing a business plan for a business?