Developing an Effective Business Plan - Blog #10

Factors that Make a Good Business Plan

What makes a good business plan?

The value of a business plan is measured in money. The actual calculation is somewhat hypothetical. With that in mind, here are some of the qualities of a good business plan, in order of importance:

1. It fits the business need- We simply can’t look at business plans as common. You have to start with whether or not the plan achieved its business purpose.

2. It is realistic. It can be implemented. The second measure of good or bad in a business plan is realism.

3. It is specific. You can track results against plan.

4. It clearly defines responsibilities for implementation

5. It clearly identifies assumptions

6.  It is communicated to the people who have to run it - At this point we leave the discussion of the plan itself as if it were a stand-alone entity, and get into how the plan is managed. The first five points here are about the plan. You can deal with them as the plan develops. This and the following two are about the management of the plan.

7.  It gets people committed -  The plan has to have the specifics in point 3 and responsibilities as in point 4, but the management has to take them to the team and get the team committed.

8. It is kept alive by follow up and planning process - One can have all seven of the above points, and if one drop the ball — the plan in the drawer syndrome — then the plan still is not a good plan. It has to bring the planning process with it, meaning regular review and course correction.

 No business plan is good if it is static and inflexible.


http://timberry.bplans.com/2009/02/some-key-questions-on-business-plans.html