Practical Resources ... Business Plan by Robbie Pentecost, OSF

Building a Business Plan

Planning to open a new business or start a new ministry is much like preparing for a major trip. A business plan is the itinerary. It gives an overview of where you are going, stops along the way, times and schedules to be met – but with room for creative flexibility. Your resources, both human and financial, give shape and limitations to your itinerary. You just can’t visit every destination along the journey. Or there may be no destination other than the end point.

Perhaps the biggest roadblock encountered by new entrepreneurs is the limited time and energy given to the planning aspect. Understanding the personal demands on your time and energy, the resources needed to be successful; the length of time to finally make a profit (or at least break even!); building clientele; and keeping up with the new knowledge in your field can be overwhelming.

The felt need or desire of your targeted population will determine your business or ministry. An effective marketing strategy needs to be developed along with a financial plan. Other factors to consider in planning are location, delivery of goods or services, and most of all a list of potential obstacles that must be overcome. All are critical decisions to make prior to opening any doors.

So . . . a few pointers for your roadmap:

Determine your final destination, but know it will take you 3-5 times longer than your originally schedule.
Set a timeline for your plan with targeted goal points along the way. Celebrate!
Research . . . research . . . research!!! Research the particular type of business or ministry you are considering. Talk to people who have started any kind of business or ministry. Find a mentor or better yet a support network.
Develop a 3-year (at least) cash flow plan. More important than profit and loss statements for a new initiative is a cash flow plan. Most small business offices or books can describe this tool. A cash flow plan provides a monthly view of your cash needs – which is critical to the success of a new enterprise.
Evaluate your personal situation and needs. Is this a good time for you to enter into a highly stressful and risky venture? If you have a family, how can they help you during these initial few years?

Whatever your final destination, know your limitations and enjoy! Most important–keep your spirit well nourished and your hope alive.

Contact Robbie Pentecost, OSF: rpentecost@chrisapp.org