What are the most effective strategies for developing a business plan?

In business, your purpose is the master conductor, guiding every decision and keeping you on track. It's not just a mission statement; it's the soul of your venture. Like setting sail without a destination, a clear purpose ensures you know where you're headed. What change do you want to bring? What keeps you going? Your purpose is the heartbeat that propels you forward in challenging times.

Although the article is talking about the purpose for your business plan (which is important), my thought when I saw the topic heading was focused on the purpose of the business. I believe every business has a higher purpose… a cause that impacts lives, communities, or the world. This purpose (or mission) needs to flow from the core values. And that purpose will demand a vision or Ideal Destination for the business to reach in the next 5 to 10 years.

Market research is a key but often and surprisingly ignored even by big firms . I would say get to know your fans and well - what they love, how they act – it's not just about numbers, don’t fixate on them; keep an eye on your competition; follow trends as they are like market whispers. What’s hot today may be cold tomorrow; technology is always changing so don’t ignore it but embrace the new stuff or you will end up way behind and unable to catch up; customer feedback is like gold. Sometimes, we get so wrapped up in our own vision that we forget it's not what customers like.

In my experience working with various retail brands it's best to stick to a strong, simple foundation. Define your business strategy, outlining how you plan to achieve your goals and objectives. Detail your marketing plans, sales strategies, operational processes, and financial projections. Consider using frameworks like Porter's Five Forces or SWOT analysis to gain a deeper understanding of your competitive environment and strategic opportunities.

My strategy is simple yet potent: clarity and adaptability. Start with a crystal-clear vision of your business goals—know where you want to go. But here's the secret sauce: be adaptable. The business landscape is dynamic, and you need a plan that can pirouette when the dance floor changes. Consider it your business GPS: map out the route, but be ready for detours. Flexibility is the name of the game. And let's not forget the power of storytelling. Your business plan should be a narrative that captivates. Numbers are crucial, but they're not the whole story. Weave in the passion, the mission, the 'why' that makes your business unique.

Es relevante considerar el macroentorno de los negocios, tener en cuenta que estamos en una dinámica geoestratégica que afectará de alguna forma la industria en la cual estamos desarrollando nuestro negocio. Nos encontramos en una configuración geoestratégica hacia un mundo multipolar, donde están cambiando las variables económicas, políticas, legales, ambientales, tecnológicas y sociales. Tenemos que ir más allá...

The business plan is an extraction in a period of time of how the company is going to fulfill its purpose. Try first to define how the ultimate goal of your company looks like. It will give you a purpose for existance and it will express the main course and boundaries that will rule the plan. Then, the business plan could be aggressive or quite slow in terms of growth, depending on the investment behind and the competitive landscape. Make sure that you can keep competitive costs in time with a good shape of profitability along the plan life and the company has the necessary advantages supporting that. If the purpose is strong and relevant and the plan in place solidly link with a reliable P&L, you're closer to a successful business plan.

Prototypes or MVPs might work for digital products or services but sometimes are not suitable (due costs, risks, etc) in others industries (i.ex. related to CP /FMCG). At any case, consider to test differentiated routes of concepts using freemium market research digital platforms. Google it!. You could run a questionnaire with a mix of close or open questions to get a winning concept idea and calibrate it later on to get a final version of that concept. Then using the same platform, consider a quantitative test (at least 200 responses) using the adjusted concept and run a close questions questionnaire. This last, will give you an idea of the concept impact and relevance (i.ex. +70% "would surely buy"). Platforms might provide tuttorials.

Gathering all the previous phases, the most important things that the business plan and P&L projections should deliver to stakeholders are enthusiasm and Trust. Make sure that the executive summary, as well as reflecting clearly the outstanding opportunity of the plan and the main goal, also pointed out briefly but with the necessary details all drivers and facts that support the vision and ambition of that plan. Be rigorous with KPIs and targets that allow to track key actions response from the very beginning as well as forecast and phasings involved. Also consider in this summary a conclusion on the plan risk assessment that should be done and a contingency plan in response. Trust is built on how well are you prepared to the battle.

Leadership will be key. Who are in charge at the top of the decision making? How is the company culture? is that culture something that boost, slow down or remains neutral toward the business plan execution? This is true from garage business until consolidated companies. At a given market, companies tend to have in time the same strategy, priorities and even plans. But having the best human talent is what make the difference between winners and loosers. Consider this as part of the investment and with high priority in your business plan.

Once you know the purpose for your business plan (financing, investors, or internal), then find an appropriate template to complete. Even though the Executive Summary is 1st in the layout, write it last. Your local Small Business Development Center is very skilled at helping with business plans. Not only can they steer you in the right direction, but they can provide tools, resources, templates, and some market research. And this is usually at no cost.