The Case for the Business Plan

71% of growing companies have a strategic plan in place.

A business plan is a document that contains the key decisions a company has made to operate. Its degree of width and depth will depend on the CEO. 

These decisions revolve around achieving the company's objectives.

The decisions can go from which markets to attend to which products to sell to which marketing strategies to pursue. It can detail what software and/or hardware to use, the profile of the talent needed, and how much money the business needs to raise.

The objectives can vary widely, but are usually linked to: achieving certain level of sales, growth, or profitability; reaching a specific customer satisfaction rating; or, gaining a target market share.

The main case for having plan is that a plan provides clarity. It lays out a structured framework to understand processes and the philosophy that fuels those processes.

Should we add sugar or a healthier alternative? If your objective is to position your brand as a healthy snack, your answer is clear. You don't need to think how to make it taste better, because that's not your objective.

A plan removes the second-guessing. When you don't know what to do, every decision causes insecurity. A business plan pulls out insecurity from the equation.

A plan is also very efficient. It eliminates time and effort invested in figuring out how to complete activities. It makes it easier on the team, especially on a startup.

Over time, business plans change. After "following the recipe" you will find out your team can perfect it. Or that sugar is no longer an accepted sweetener. Or that your actual market is kids and not teenagers.

The point is to perfect the business plan over time, but to remain clear along the way.

If you are having issues building a business plan, setting up goals, and/or achieving them, please feel free to reach out to us at contact@summa.consulting to learn about how we can help.