Articles: BusinessPlan/ProfitPlan

© Copyright 2008 Mike Crosa Permission granted to reproduce this article, providing you use the article in its entirety, including the brief bio trailer, all links and references within.

In starting a business, one of the first things the budding entrepreneur hears is, "You should have a business plan. I am sure you have heard this chant repeatedly like a mantra. I wonder how many of us really know what a business plan is.

Is it a resume of the budding entrepreneur? Yes!
Does it tell everyone concerned where you the entrepreneur are going? Yes!
Does it describe how you plan to get there? Yes!
Is it a financial forecast of your next year, of your next five years? Yes!
Is it a tool to get you a business loan? Yes!
Is your plan cast in stone? NO!

Like a flight plan a pilot uses to go from point A to point B, you use a business plan toreach your objective. You use the plan to keep on course. If a market change affects your proposed path, you map out an alternative. All well and good you say but how do I start.

Easy, you start at the end. Where do you want to be in one month, one year, or five years? Once you have this firmly worked out in your own mind and written down, you can begin to plan your path by working backwards.

You know where you want to be; now how do you get there. With the end in sight, it should be a lot simpler for you to determine the steps you must take to get to that end and in what sequence. The plan forces you to think in an organized and logical manner. Having planned your route, trying to anticipate all the zigs and zags, what is it going to take in order for you to achieve your goal? That is, what are your financial requirements?

With the steps of your plan written out, determining your financial needs is a simple matter. You do it by determining the cost involved in achieving each step. Once you know what your goal is going to cost in terms of time effort and money, you now face a very grave decision. Is the goal worth the effort? That's right, is the goal worth the effort?

If it is, great! You have your guide to success and are well on your way to achievement.

If it is not, that is great too. Many times in my experience as a CPA and QuickBooks Coach, once the business plan and the costs have been determined the goal has been abandoned. Not because the goal was not achievable, it was. The entrepreneur was just not willing to put out the effort required to attain the goal. That is the true benefit of the exercise. It makes you think through to your objective and helps you in your career decisions.

Anticipate; write out your business (goal) plan.

Bio: Mike Crosa CPA, QuickBooks Coach has been helping businesses grow and become more profitable for over 25 years. He is a Certified QuickBooks Pro Advisor. You can reach him at: coachmike@businessprofits.com or call toll free 877-538-4392. Visit his web site at www.businessprofits.com for more articles and to sign up for his newsletter "Profit Nuggets"

©Mike Crosa CPA, QuickBooks Coach 2008