In this posting I will be discussing the strategy and tactics of a recognized business plan writing expert. The expert I will be talking about is Tim Berry, founder of Palo Alto Software and bplans.com. Tim Berry has been called the Obi-wan Kenobe of business planning. One of the types of business planning that stuck out to me that Mr. Berry teaches is what he calls “plan-as-you-go” business planning. This type of planning is intended to bring the idea of the business plan up to date with the kind of flexibility and power we have in the tools we use in business everywhere. Most of the focus is on the power of planning the plan and easing up on the form. So what is different in this type of business planning is that it is a process, not just a plan. The “plan-as-you-go” plan is not like the formal business plan you see in business school or read about all over. It doesn’t follow any particular recipe. Every plan is unique in its own way. One of the most essential parts of this type of business planning is the review schedule. If you don’t have a plan review schedule, you don’t have a “plan-as-you-go” plan. The review schedule keeps the people involved aware of the points of the plan, these points keep those involved aware of when and how your going to track progress. Another important part of PAYG planning is developing useful metrics. One useful metric is cash flow.
Tim Berry has some unique views on business planning. He says in his list of principles that “good business plans are never done”. He says that once your business plan is finished your company is finished. Instead of saying your business plan is finished he says you should revise it as needed. He reminds us you should never let your business plan go static. We need to always keep the plan active and on top of things.
Investors want to see your background in the industry and what kind of experience you have in business. Often times small businesses fail because they don’t have the experience or right people onboard in the management team. Investors also want to see that there is a need for your product or service. No matter how unique your product or service is investors want to see if you understand your demographics and can reach your target market.
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