Economic Development

What Makes a Good Plan?

What factors are involved in creating a good business plan? Is it the length of the plan? The information it covers? How well it’s written, or the brilliance of its strategy. No.

The following illustration shows a business plan as part of a process. You can think about the good or bad of a plan as the plan itself, measuring its value by its contents. There are some qualities in a plan that make it more likely to create results, and these are important. However, it is even better to see the plan as part of the whole process of results, because even a great plan is wasted if nobody follows it.

Planning is a process, not just a plan

A business plan will be hard to implement unless it is simple, specific, realistic and complete. Even if it is all these things, a good plan will need someone to follow up and check on it. The plan depends on the human elements around it, particularly the process of commitment and involvement, and the tracking and follow-up that comes afterward.

Successful implementation starts with a good plan. There are elements that will make a plan more likely to be successfully implemented. Some of the clues to implementation include:

  1. Is the plan simple? Is it easy to understand and to act on? Does it communicate its contents easily and practically?
  2. Is the plan specific? Are its objectives concrete and measurable? Does it include specific actions and activities, each with specific dates of completion, specific persons responsible and specific budgets?
  3. Is the plan realistic? Are the sales goals, expense budgets, and milestone dates realistic? Nothing stifles implementation like unrealistic goals.
  4. Is the plan complete? Does it include all the necessary elements? Requirements of a business plan vary, depending on the context. There is no guarantee, however, that the plan will work if it doesn’t cover the main bases.

Uses of business plans
too many people think of business plans as something you do to start a company, apply for a loan, or find investors. Yes, they are vital for those purposes, but there’s a lot more to it.

Preparing a business plan is an organized, logical way to look at all of the important aspects of a business. First, decide what you will use the plan for, such as to:

  • Define and fix objectives, and programs to achieve those objectives.
  • Create regular business review and course correction.
  • Define a new business.
  • Support a loan application.
  • Define agreements between partners.
  • Set a value on a business for sale or legal purposes.
  • Evaluate a new product line, promotion, or expansion.

No time to plan? A common misconception
“Not enough time for a plan,” business people say. “I can’t plan. I’m too busy getting things done.” A business plan now can save time and stress later.

Too many businesses make business plans only when they have to. Unless a bank or investors want to look at a business plan, there isn’t likely to be a plan written. The busier you are, the more you need to plan. If you are always putting out fires, you should build fire breaks or a sprinkler system. You can lose the whole forest for too much attention to the individual trees.

Keys to better business plans

  • Use a business plan to set concrete goals, responsibilities, and deadlines to guide your business.
  • A good business plan assigns tasks to people or departments and sets milestones and deadlines for tracking implementation.
  • A practical business plan includes 10 parts implementation for every one part strategy.
  • As part of the implementation of a business plan, it should provide a forum for regular review and course corrections.
  • Good business plans are practical.

Business plan “don’ts”

  • Don’t use a business plan to show how much you know about your business.
  • Nobody reads a long-winded business plan: not bankers, bosses, nor venture capitalists. Years ago, people were favorably impressed by long plans. Today, nobody is interested in a business plan more than 50 pages long.

What can help me write a good business plan?

  • Sample business plans – Over 100 free sample business plans from various industries
  • Business plan template – This fill-in-the-blank business plan template is in the format preferred by the SBA and banks
  • Start a business – An easy to follow six step process with plenty of information for helping to start a new business
  • Business plan software – The #1 best selling business plan software helps you to write a professional business plan

Recalled Cars to Fix Toyota Issue

Word of the remedy came as the French automaker Peugeot said it was recalling cars it builds with Toyota at a plant the companies operate together in the Czech Republic, widening a recall that has already affected cars in the United States, Canada, and China and throughout Europe.

Toyota presented a plan for repairing the potentially sticky pedals to the National Highway Traffic Safety Administration, a senior official at the Transportation Department said. The official spoke on condition of anonymity.

The safety agency is not required to approve remedies but can reject them if it thinks they will not sufficiently address defects. The agency did not reject the remedy, the Transportation official said.

Toyota officials phoned dealers Saturday to say that a remedy was ready.

“We got the call this morning,” said Peter Blackstock, the owner of Victory Toyota and Lexus Monterey Peninsula in Seaside, Calif. “The parts are on their way.”

A Toyota spokesman, Mike Michels, said the company planned an announcement next week and would send letters to owners, but he cautioned it could take several weeks for notices to arrive. Toyota wants owners to wait for the letters before they take their cars to dealerships for repairs, he said.

Mr. Blackstock said he expected that dealers would be sent replacement accelerator pedals, which are produced for Toyota by CTS, a parts supplier based in Elkhart, Ind.

Separately on Saturday, the traffic safety agency said it had opened an investigation into the manufacture of the accelerator pedals.

Last week, Toyota said it would temporary stop production and sales of eight models — as well as sales of the Pontiac Vibe, which Toyota makes on behalf of General Motors — at plants throughout the United States and Canada. The plants are scheduled to be closed for a week beginning on Monday.

Toyota did not stop production or sales at plants in Europe because it said it had already devised and implemented a remedy there.

The recall for accelerator pedals involves 4.1 million cars in the United States, Europe and elsewhere. Toyota has also recalled another 5.4 million cars in the United States whose accelerator pedals could get stuck on floor mats. Worldwide, the recalls affect more than 9.5 million vehicles.

The recalls have given a black eye to Toyota, which grew to become the world’s largest automaker, and the second largest in the United States, based on a reputation for building high-quality vehicles.

On Friday, Toyota’s chief executive, Akio Toyoda, apologized for the problem but said consumers should feel confident driving the company’s cars.

Toyota’s competitors have tried to capitalize on the company’s troubles by offering trade-in deals to Toyota owners. But it is still unclear what effect the recalls might have on Toyota’s sales in the United States.

Edmunds.com, a Web site that provides car-buying advice, forecast that Toyota’s market share for January would fall to a four-year low. But AutoTrader.com, which tracks consumers’ shopping habits, said consideration of Toyota brands had actually risen over the last few days.

Mr. Blackstock, the California dealer, said he hoped repairs could be completed quickly. He said he did not think the recalls would have a lasting effect on his business, or that of Toyota.

“If this is the worst thing that happens to us this year, it should be a pretty good year,” Mr. Blackstock said.

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