Get All Access for $5/mo

Use Your Leadership Style to Make Your Best Business Plan Yet Find out what kind of a thinker--and business owner--you are by asking these strategic questions.

Opinions expressed by Entrepreneur contributors are their own.

Funny, isn't it, how just getting started is often the hardest part? I think that's true of business planning. Avoid the inertia. Get started, get going and don't wait.

How do you get started? It's important to realize there are many different ways, and the best choice for you depends on the way you like to work.

In Start with the Review Schedule , my March 2008 column, I suggest that you start by setting the review schedule. That's still one of my favorite starting points, because it sends a clear message about what the planning is about and how it'll help your business.

However, maybe you're a concept person, a strategic thinker. That's great. Stick with that, and start your planning with what I call the heart of the plan, the core strategy. Take a step back from your business and ask yourself four key strategic questions:

  1. What am I really selling?
    Ask yourself why people buy your product, what they're getting from your business that they can't get elsewhere, and what wants and needs drive their decision to buy your product.
  2. How do I want my customers to think of my business?
    Ideally, what words or phrases would they use to describe your business to a friend? Are you reasonably differentiated? What's the key message customers should be getting?
  3. What am I really good at? What do I (my company) do better than anybody else? Am I correctly focused on that core competence?
  4. What do my customers want that I'm not giving them?

But perhaps you're more comfortable with numbers than concepts. That's not a problem; no apologies necessary. In that case, consider these three tips:

  1. Do a sales forecast. Break your sales into components, such as specific products, groups of products, channels or buyers. Project it if possible into units, price per unit and cost per unit (not always possible, but a good idea when you can do it). You'll discover that as you project your estimated sales, you're thinking about some of the core strategy questions above, which will be implicit in your numbers. And once you have a sales forecast, you can start tracking results, which leads to your planning process.
  2. If you're a startup company, estimate startup costs. That includes expenses that occur before your first day of business, such as legal expenses, fixing up a location, developing prototypes; and the assets you'll need to start, such as equipment, starting inventory, and--oh, yes--cash in the bank.
  3. Estimate your expense budget. If you like, call it a burn rate. What do you think you'll be spending for rent, payroll, utilities, marketing expenses and everything else? As with the sales forecast, this gives you something to track, so you can start planning.

Alternatively, perhaps you like to-do lists better than numbers or concepts. In that case, start your plan with milestones: dates, deadlines, business activities, how much they're going to cost, how much they're going to produce. These are concrete specifics.

The key here is to get started and get going. People are different, so start anywhere you like; it won't matter. You'll fill in the rest when it's needed. This way you'll be able to see results quickly, and that will help you stay motivated as you do your planning.

Tim Berry

Entrepreneur, Business Planner and Angel Investor

Tim Berry is the chairman of Eugene, Ore.-Palo Alto Software, which produces business-planning software. He founded Bplans.com and wrote The Plan-As-You-Go Business Plan, published by Entrepreneur Press. Berry is also a co-founder of HavePresence.com, a leader in a local angel-investment group and a judge of international business-plan competitions.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

Meta Makes $1 Million Dollar Donation to Donald Trump's Inaugural Fund

Meta CEO Mark Zuckerberg also reportedly gave Trump a pair of Ray-Ban Meta smart glasses.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Leadership

Should I Stay or Should I Go? 8 Key Points to Navigate the Founder's Dilemma

Here are eight key signs that help founders determine whether to persevere or let go.

Marketing

Your Most Powerful Marketing Weapon Is Hiding in the Finance Department — Here's Why

Transform your marketing leadership by turning finance from a barrier into a strategic ally. Learn how aligning with your finance team can drive unprecedented growth and innovation.

Starting a Business

They Bought an Ice Cream Truck Off eBay for $5,000. Now Their Company Has 70 Shops and Sells Treats in Over 12,000 Stores.

For the episode of "The Founder CEO," the co-founder and CEO of Van Leeuwen Ice Cream explains how one ice cream truck grew into a successful nationwide brand.