If you're one of the many people thinking about starting a small business, having a business plan is one of the first things you should have on your list of things to do. It doesn't matter if you're starting a small business from home or away, having a plan for your business is considered a blue print for a successful small business. What is a business plan and why do you need one?
Developing Planning Modules: Compartmentalizing your plan by developing planning modules or "chunks" allows you to attack the plan in parts, yet still maintain a cohesive plan. I have found that developing an annual plan made up of quarterly targets _ thus becoming a rolling quarterly forecast financial model _ allows for a cohesive structure along with the nimbleness to react to market conditions. At the end of each quarter, a true_up process to align results to annual targets needs to be re_forecast and adjustments made.