Retail Observer

RETAILOBSERVER.COM JULY 2014 56 E verybody needs a business plan. Some new business startups don't even know what that means, and some well-established companies may have never created one in the first place. If you've watched Mike Judge's Silicon Valley, which pokes fun at a startup called Pied Piper and its founder's lack of a business plan. Many of you may even be able to relate to the exec checking Wikipedia to see how to create his own business plan and scramble to create one in less than 48 hours to show potential investors. But for serious business owners, it's no laughing matter. A business plan is way more than a tool for fundraising, it's one of the most important foundational documents that you can create for your company—one that forces you to establish your identity and your unique value proposition. In addition to the obvious sales and recruiting purposes you'd normally associate with a business plan, you can use your business plan to hold yourself accountable to the original vision of the company, as a compass to monitor your progress, and a tool to help control your fate. In fact, BrandSource's Appliance division recently held our third Maytag University. Nearly half of our Maytag Channel (Maytag Source) members attended the conference in Lake Tahoe, California. It was a 3-day business plan boot camp. We included only inside speakers with agendas only intended to help members, including myself, Anitra Nichols, Maytag Source Director, and Mark Hecht and Michael Gross from Whirlpool Corp, all of whom spoke to the importance of creating a good business plan. It was the most productive University we have ever had. We started by breaking into small groups based on volume and location, and discussed in great detail key elements of a successful business plan, including, for one, the importance of having a plan in the first place! A few things to consider when creating or redefining your own business plan include Goal Setting, SWOT Analysis (a structured planning method used to identify and evaluate Strengths, Weaknesses, Opportunities, and Threats); Mission Statement; Operational Analysis; Financial Analysis; Competitive Analysis; and Action Plan. At the university, we provided each Maytag Source member with a template based on the above items and everyone emerged from the conference with a business plan. It was so successful and proved to be such a benefit for our members that we will continue to do the business- plan evaluation annually. Members can either add to their plan and build off the original plan, or newbies can create a business plan from scratch. One thing we noticed is that by writing out your business plan in the moment, you are forced to review everything from marketing assumptions to staffing to financial analysis all at once. By evaluating these things in one swoop, you get a clearer picture of your business from a bird's eye view rather than a segment view of disparate parts of the business. Even better, this plan will help you drive your future and set goals. If you set goals for end-of-year sales, for example, you aren't just waiting for sales to happen, you are actually creating tools and guidelines by which to judge your team. If they aren't actively working to get you toward this goal, then you need to re-evaluate your staff. On that note, you can also attract better talent with a well-written business plan. When a prospect wants to understand your business better, hand over the business plan and you may get instant buy-in from some of your top talent choices. Potential employees will respond to a well-crafted and thought-out message just like banks and investors will. RO John White Appliance Trends John White is a 20-year veteran of the appliance industry and is currently serving as the Executive Vice President of Appliances for BrandSource. BUSINESS PLAN BASICS Why you need a business plan, even if you're a well-established company

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