Consider the following scenarios:
You have a great idea for a business, but do not know where to begin.
You have started a business, but it is not getting the results you anticipated.
You have been running your business for some time, but want to expand.

In any of the above cases, the most important thing you can do is to develop a plan.

There is a myriad of reasons why people hate to plan. It takes time and effort. Things change so rapidly in the business world that the plan is obsolete almost as soon as it is written. We're simply too busy running the business.

So, not planning can have advantages of saving time, energy, reducing our level of frustration. But the nicest thing of all about not planning is that failure comes as a complete surprise and is not preceded by that awful period of worry and depression!

So get over it. You need a plan. And the most critical aspect of that plan is the thought you put into it. Here are 10 easy steps to follow in building your plan.

1. What is your goal? Decide what you want to accomplish in your business over a specific period of time. Consider the revenue/profit you would like to achieve. How would you like to be viewed in the marketplace?

Write it down.

2. Define your target marketplace. To whom will you sell? Be as specific as possible. Target specific market segments and customer size. You will be developing value propositions to those customers, and they have different needs, based on their segment and their size.

For example, if you are developing a consulting business for Web design, what is your ideal company size? Is it small firms with fewer than 100 employees, or mid-size companies? Will you focus on the retail space? High-tech? Nonprofits?

Write it down.

3. Define your offerings. What will you sell? Again, be specific. Identify your products and/or services. Also determine your pricing and discount structure.

Write it down.

4. Consider your competition. Once you have completed steps 2 and 3, you need to investigate your competition. Visit their Web sites. Use your network. Try to uncover their strengths, weaknesses, pricing models. Then determine how you will compete with them. Do you want to be the low-price leader? Or preferably, what value can you bring to your customer which is different from or better than the value that they bring?

Write it down.

5. Define your value propositions. For each of your major offerings, develop a three-sentence statement that documents your value proposition: The value you deliver (see step 4). The business results your customers can expect to receive because of the value you will deliver. Note that this may need to be different statements for different market segments. A proof statement, which is an example of how you have done that in the past.

Write them down.

6. Develop your objectives. In order to achieve your goal (step 1) you probably have a number of objectives that will help you get there. For example, you may have separate objectives for prospecting, marketing, administrative support, financing, etc. For each one of these areas, you need a statement that is S.M.A.R.T. (Specific, Measurable, Achievable, Relevant, and Time-bound).

Consider the difference between these two statements:
Build a set of core offerings
Build a set of core offerings, as evidenced by a product description for each core offering on my Web site, by May 30, 2003.

The second statement meets the criteria of S.M.A.R.T., showing you clearly what success in that objective looks like.

Write them down.

7. Develop your strategy and action plan for each objective. Every objective should have a strategy statement that answers the question, "How will I do this?" The strategy is simply a description of the major route you will take to accomplish your objective.

For example, if you were starting a consulting business with an objective to build a core set of offerings, you might have a strategy that stated, "Focus on repeatable solutions that leverage my core competencies and experience." The strategy leads you directly to your actions.

What are the things you need to do? For each action, you should also identify the "do by" date, needed resources (money, other people, information, etc.) and who owns the action item.

And keep it simple. While your objectives and strategies can be 12 months in nature, keep your actions limited to the next two to four months. You cannot possibly know what you will be doing in eight months' time.

Write them down.

8. Develop a financial plan. If you are considering external financing, then your venture capitalist or bank will have specific information that they need. If, however, you are starting a home-based business, then a simple budget plan will do. Estimate your revenue by quarter and identify your expenses.

In my own consulting business, I consider the following cost categories: telephone, supplies and postage, dues and subscriptions, travel, entertainment, accounting and legal costs, advertising (including Web site), meetings and conferences, education and development, and the all-important miscellaneous.

Write it down.

9. Get feedback. Review your plan with some trusted advisors, people who are key parts of your network and whose business advice you trust. Listen to their feedback and adjust as needed.

Write it down.

10. Review the plan regularly. Keep it current. Review it every three months. Update the action items. Assess whether or not you are on track. If you are, great. Keep going. If you are not, think about what you need to do differently and adjust the plan if needed.

Write it down.

I sound like a broken record about writing it down, but I cannot tell you how many times people have told me that they have a plan, it's in their head. Well, a plan that is in your head is not worth the paper it's not written on.

This is the first in a series of articles on developing a business from Pat Molloy, founder and principal consultant at The Sales Alliance (www.thesalesalliance.com), a sales and marketing consultancy. With more than 25 years experience in sales, sales management and operations, Pat has been managing her successful consulting business for the past four years. Contact Pat at pat@thesalesalliance.com or at 603-888-0361.