Real-World Example 6.4
Craig Knouf, the CEO of Associated Business Systems, figures he’s revised his
plan about 120 times since the founding of his’ company in 1997: He refer to his
plan monthly, quarterly, and annually and says running the company any other
way “would be like driving a car with no steering wheel” With society and the
economy in constant change, he must be prepared to satisfy his customers’ needs
By being aware of new trends. As a result of his constant scanning and revising,
he expects sales to double in 2004 (from 2003) to $3 I million In addition, the
changing business plan provides a detailed, written record of his company’s
evolution. Lenders love this type of information.
What the Plan Should Include
Because an effective business plan helps determine the feasibility of an idea, it should
include a detailed analysis of factors such as the following:
• The proposed product.
• The expected market for it.