The number one reason that businesses are unsuccessful is the failure to plan properly.

Cash Flow Form

Business Plan Form

There are two primary types of planning necessary for effective operation of any business:

• Strategic planning
• Operational planning

Strategic planning is the one most often overlooked by small businesses even though it is most determinative of the long-term health and success of the business. Strategic planning is dedicated to establishing business core values, shared vision and mission. It should answer questions:  “Who are we?” “What do we want to do?” “What will we look like five years from now?”

Outstanding organizations demonstrate excellent market intelligence, superior business processes, and strong organizational commitment from the top down. Each of these is modeled in the strategic planning process and that process is viewed as a critical and continuing business practice.

Operational planning* is shorter term, but should be no less specific. This is the roadmap process…”We know where we want to go, so now we need to lay out how we are going to get there. ”

*This is also the activity required by conventional lenders and by the Small Business Administration before considering a commercial loan request.  Cash flow projections are also required with the written business plan.

SBDC services include hands on guidance with the planning process and critical review of the finished product.  The Certified Business Analyst works closely with business bankers from across the region to maintain familiarity with their expectations for business plans as required in the loan process.