Business plan

Yesterday got away from me, so I will play catch up today. In talking to a commercial real estate guy on Tuesday, and in looking at a possible store front in a nearby market, I was faced with putting down information in two different formats: a business plan and a financial report. I found a business plan template online, deciding that reinventing the wheel was not a logical thing to do. I cannot believe how many good model documents I can find online! Some scam and want money at some point, but with careful research, an individual can find what he/she needs and tweak it as needed.

This particular business plan was more detailed than I need right now, so I worked on it for several hours, covering the background material that would serve the immediate purpose. The rest (researched background for traffic and customer breakdown in a 3-5 mile radius, statistics for needs, etc) could be done at a later time).

I have always before now avoided this commitment on paper, thinking it was not necessary for what I was doing. However, in finally taking the step, at least to complete Part 1, I am able to see exactly where I have been, where I am now, and where I want to be three to five years in the future. The business plan also requires that I acknowledge what and who I am as a business, complete with mission statement, description of product line and customer base, and short and long term goals. While I would not say it was "fun," it showed me that I have grown from hobbyist to business person in understanding the need for growth and development.

The book I talked about earlier by Bill Collier also reiterates the need to look constantly at the business play--keeping an eye on the prize--to be sure I stay on track and can meet my goals, even if they shift and change depending on what happens in the market of fragrance oils. For my purposes, this plan shows a potential landlord that I know what I am doing with this business. One of the important parts of this plan was an explanation of how my business is different from other similar fragrance-oriented stores. This part is a lot like the question a potential employer might ask a job-seeker: "Why should we hire you? How are you different from the other 17 applicants for this job?" Especially if the landlord has leased space to other similar businesses that have not succeeded and maybe even broken a lease, he needs to be convinced that my situation and business is different.

Now that does not mean I won't fail for reasons out of my control; on the other hand, filling in the parts of the business plan that elucidate strengths, weaknesses, and challenges at least show this lessor that I have considered different scenarios and possibilities as well as solutions to the challenges that may face me. I do not plan on failing. I have faith that I offer a quality, affordable line of products. Unfortunately, business cannot run on faith alone, and so the planning part is critical to acknowledge.