Business Plan Priorities – Cart Before Which Horse?

Even respected peers in business plan development sometimes disagree as to what part of a plan should be prioritized at what time. While it does depend on the type of business, almost always we suggest completing the market and competitive analysis first and foremost. Understanding your competitors within the framework of their marketing pursuits and your contemplated marketing efforts to capture an estimated market share within your service area (regional or national) is the best initial approach. Once you have comparative analysis on how to achieve, then a detailed marketing plan can be the next component on the roadmap to success. Then the forecasts can have critical, well supported revenue assumptions as well as appropriate corresponding expenses. Now you know you have a viable plan, the right way to write so much of a true, high quality plan.

Hence, when we take on larger engagements, we typically do the market analysis first to assess the business opportunity and often the forecasts before completing a business plan. This approach is wise since the market analysis “cart” belongs before a forecast, let alone a business plan “horse” that is capable of winning the Kentucky Derby.

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