Planning is difficult because there is no immediate feedback as to its
                      value. But if you think of starting and operating your business in the same
                      way you might think about climbing a mountain, the purpose and
                      advantages of planning become clearer. 

                      When you start up the mountain you never know what to expect: sudden change in
                      weather, lost or broken equipment, mistakes in maps, an injury. Planning for these
                      eventualities will allow you to deal with them and still reach your objective in spite of
                      temporary setbacks. On the other hand, lack of planning can spell disaster. The more
                      careful the planning, the more likely problems will be anticipated and not allowed to
                      interfere with your ultimate business objective. 

                     THE BUSINESS PLAN

                      Countless books have been written on how to write an "effective" business plan. The
                      traditional business plan is a very well defined and structured document. It is written as a
                      presentation to lenders, potential investors, and bankers in order to raise capital. As such,
                      it is sort of an advertising document and, well, maybe tends to exaggerate a little. 

                      Although many will argue the business plan is a planning document, it frequently is not
                      because of these exaggerations. After a while YOU will start to believe the business plan ...
                      even if you know that what is contained within the document is absurd in places. (Yes sir,
                      there is no doubt about it, sales will easily double each year ... as long as we can obtain
                      adequate financing.) 

                      If your business is going to require investor capital at the onset, you will need that
                      traditional business plan. But BEFORE you even get to this point, or if you are like so many
                      of us and are starting a small business venture where little or no formal investment is
                      needed, you need another plan ... A plan for YOURSELF ... A HONEST plan for you. You need
                      a strategic plan. 

                     THE STRATEGIC PLAN

                      A strategic plan is your plan for success. It will define your business mission, your present
                      situation, and where you want to be in three to five years. A strategic plan, like the
                      traditional business plan, should be well-structured, and include a number of short succinct
                      statements covering the following areas: 

                          Vision Statement 
                           Mission/Purpose Statement 
                           Scope of Business 
                           Assumptions 
                           Goals and Objectives 
                           Risks 
                           Strategies 
                           Progress Reporting Methods

                      Every statement in your strategic plan will be important since it defines what your business
                      will be, what your objectives are, and how you intend to achieve these objectives. If you
                      find you cannot write about the areas that are about to be discussed, you need to stop
                      and think carefully about your situation until you can. A strategic plan will allow you to
                      anticipate problems and to make decisions that will help you meet your business goals and
                      objectives. Without a clear goal in mind, the best decision 

                     VISION. 

                      This is a short statement that defines your overall long term goal. This statement should
                      define WHAT your business will be. It should be brief (20-30 words) and clearly define your
                      customer base and you're providing. Too specific and it's not much of a vision; too general
                      and it's unattainable. Your vision should be something to strive for ... usually a multi-year
                      effort. 

                      Example: Build an automobile repair business, specializing in Porsche, that will gain a
                      reputation for outstanding service within the community and will, first and foremost, always
                      be responsive to customers' needs. 

                     MISSION/PURPOSE. 

                      This is a definitive comment that tells WHY you are pursuing your vision. Why do you want
                      to start a business? What do you have to give? Keep in mind that a lot of people have a
                      vision but very few have a mission ... At least one they are willing to pursue (many people
                      shared Martin Luther King's dream but he was the one who also had a mission to do
                      something about it). 

                      Example: Make use of my background and experience with Porsche automobiles to provide
                      high quality repair and restoration services; to provide jobs for locally qualified individuals;
                      to provide for my family's needs 

                     SCOPE. 

                      You must define the boundaries of your business. You cannot be everything to every-body.
                      If the scope of your business is too narrow, the probability for success may be diminished
                      due to the smaller number of potential customers. If the scope is too broad, you will never
                      be able to focus on your objectives. 

                      Example: We will provide our services for all Porsche automobiles with the exception of the
                      914 series. Our services will include general repairs and maintenance (less major body
                      work), detailing, storage, rebuilding and restoring. 

                     ASSUMPTIONS. 

                      It is important to understand what specific assumptions you are operating under
                      concerning your new business, since they determine and dictate how your business will
                      grow and prosper. The more specific these assumptions are, the better. It may require a
                      little research on your part to lay out these assumptions but the planning stage is the time
                      to do it. It is difficult to give general examples, but in keeping with our Porsche repair
                      facility, here are a few: 

                         1. I will keep my present job for the next 12-months. 
                         2. There is a significant number of Porsche facilities in the area and they are not
                             perceived as doing a good job. 
                         3. I will limit my involvement to 20 hours per week for the first 12-months. 
                         4. I have fifteen customers that I can start with right now whose cars require major
                             repairs. 

                     GOALS & OBJECTIVES. 

                      This is a specific list that should include items that can be measured in terms of
                      accomplishment and attainment. Goals should be realistic and attainable within one to
                      three years. 

                         1. Be able to quit my present job within 12 months. 
                         2. Grow the business to generate $150K gross sales in the first year of operation. 
                         3. Add 100 new customers by the end of the first year of business. 
                         4. Sponsor a racing team by the third year of business. 

                     RISKS. 

                      Identify as many risks as you can. This might be difficult since it requires some negative
                      thinking, but it is important for you to consider the downside in your planning. You must
                      identify as many specific risks to your proposed business as possible. By doing this, you can
                      more easily plan to deal with the risks. 

                         1. Possible damage or loss of tools, inventory, facility. 
                         2. Loss of customers due to the competition. 
                         3. Loss of employee(s). 
                         4. Loss of an important supplier. 
                         5. Loss of lease, requiring a new location and facility be found 

                     STRATEGIES. 

                      Your strategies are the methods you will use to achieve your goals and objectives in spite
                      of the risks. 

                         1. Sponsor a monthly "clinic" in which we will provide the use of my facility to members
                             of the local Porsche club. (generates loyal customers) 
                         2. Publish a monthly newsletter for all my customers. (excellent marketing), and use
                             direct mail to identify potential customers. 
                         3. Develop two reliable parts suppliers. (guard against loss of one) 
                         4. Constantly reassess pricing with respect to the competition and your costs. 
                         5. Be an employer worth working for ... treat my employees like the important asset
                             they represent. 

                     PROGRESS REPORTING. 

                      A plan written and forgotten does not serve the purpose for which it is intended. Your
                      business is dynamic - numerous variables that affect your business are changing constantly
                      and your plan must reflect these changes and be updated or modified accordingly.
                      Furthermore, you continually must assess your performance against the plan. 

                      Revisit your strategic plan monthly and revise and update it as required. Your planning
                      efforts, if carefully done in terms of assessing risk and the unexpected, should help you
                      maximize your chances for success. You must constantly update your plan to ensure it is
                      tracking changes that were not anticipated previously. If you find, by referring to your
                      planning documents, you are not making satisfactory progress toward your goals, you must
                      be ready to admit failure. Pull up stakes and cut your potential loss. Perform a post-mortem
                      and assess the failure. What went wrong? Were the circumstances beyond or within your
                      control? Could the event(s) contributing to the failure have been anticipated and possibly
                      mitigated? 

                      In the true entrepreneurial spirit, you will probably be involved in a new business venture
                      sooner or later and you want to be able to take advantage of your previous experiences.
                      By spending time performing a careful assessment of your failure, the lessons learned will
                      be documented for future reference. 

                      Lastly, be aware of this very important "planning for failure" truism: Pay yourself first or you
                      may end up with nothing for your efforts. 

                      Do not make the mistake of putting every dollar of profit back into your business. Your
                      business may very well prosper for a number of years and then be plunged into sudden
                      bankruptcy through no fault of your own. If this happens, and, if you have not planned
                      ahead, you may very well have nothing to show for your time or efforts. Plan for this
                      disaster by remembering that YOU are the business and deserve to be appropriately paid
                      for your efforts. Never forget to pay yourself first. In bad times, the creed Protect yourself by
                      placing a certain percentage of your income into a retirement account such as a SEP or
                      401K plan. Money in these types of accounts is protected from creditors. Plan ahead, you
                      won't be sorry! 

                     SUMMARY

                      Fail to plan and you plan to fail. Be the exception to the rule - plan, assess, and plan some
                      more. You MUST have a clear goal and a well-defined metho-dology for getting there. Take
                      all the time necessary to produce a well thought out strategic plan. Plan for your success
                      but also plan for failure.

                      Brought to you by: World Wide Information Outlet - http://certificate.net/wwio/, your
                      source of FREEWare Content online. 

                      Robert Sullivan is the author of The Small Business Start-Up Guide, and United States
                      Government - New Customer!. He frequently lectures on starting small businesses and appears
                      on CNBC's "Minding Your Business" as a small business expert. His books may be ordered
                      toll-free by calling 1 800 375 8439. 

                      Robert also developed and maintains an extensive award-winning Internet website, "The
                      Small Business Advisor," at http://www.isquare.com

                      Reprinted from Zongoo! Business