Today’s post is by Randy Russon, founder of TOPCFOS
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When I was just a little boy, I used to build these really cool playhouses in the backyard. I built them out of wood using a saw, hammer and nails. I remember one that was long like a tunnel. After I got through building it, we kids would crawl through it and we had a blast playing in it. As I remember, I think it was my Dad who tried to give me some advice one time. He said something like, “Why don’t you draw up some plans first, then build your playhouse based upon the plans you draw?”
In my little boys mind, I remember thinking what a waste of time this would be. I would rather be working on my playhouse than wasting it on some written plan. Writing a plan would take way too much time. I didn’t want anyone or anything to get in my way! Now when I look back on that, I kind of wish I had taken my Dad’s advice to heart and taken the time to make a plan for my playhouse. I think it would have turned out much better! The same is true in business today. When people take the time to draw up plans for their business, it gives them a clear direction of where they want to go and how to get there. These plans become the blueprint for success in the future.
I’m not sure who said this, “A goal not written is only a wish”. But, I’d like to give this unknown author credit for these words of wisdom. By formally writing down our business plans this crystallizes it in our mind where we want to go. From the SBA website we learn, “A business plan is an essential roadmap for business success. This living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues.” One of the biggest reasons companies write business plans is so they can attract startup capital. Angel investors and venture capitalists want to see what the business plan is before investing.
So, the better the business plan is and the more detailed it can be the more likely you are going to attract highly qualified investors. Also, I would highly recommend that you hire a professional to write your business plan, since they usually have software that will include pro forma statements. Pro forma statements will project the financial results of your business into the future. In other words, it’s the pro forma statements that will help to influence whether an investor wants to invest in your idea or not. As you can see, a well written business plan is something that is definitely worth doing right.
We hope you’ve enjoyed our Blog today. Please remember, TOP CFOS offers the finest CFO services to companies anywhere in the world and would love to be a part of your team. Feel free to reach out to us anytime. Your feedback is most welcome, and we invite you to share this post with friends and associates. Our contact information can easily be found here on our website, so give us a call today! Our next post will come from the Boards category on our website and is entitled Should the CEO serve as Chairman, too? And, thank you for joining us!