Business planning and the start of a new tea room venture is more of a process than an event. A new business is a separate entity that is very much like a garden: planning is required to start, certain mandatory steps are required and constant management and pruning must occur to produce a successful venture.
This plan addresses the basic steps as well as business structure and management steps that are required for success.
The Basic Concept
The basic concept of the business plan is simple:
o An Entrepreneur senses a market opportunity
o To capitalize on this opportunity the entrepreneur establishes a business entity
o The entrepreneur has a vision of the company for the future that foresees a healthy, growing, profitable company
o In order to reach that future vision, a roadmap is required that can be reviewed to determine progress to achieve the ultimate goal
Just like any important trip, a roadmap in the form of a business plan will improve chances of arriving on time and safely. An additional benefit of the business plan is the control function evidenced by the ability to measure progress against the plan.
The critical feature of any plan is not its complexity but its use. Since this document is focused on building a tea room business, a basic document should be prepared and used as the basic guide to the growth of the business, The business plan should be the business owner’s bible and should be read and consulted frequently to determine the mid course adjustments that are always required in the life span of the business.
TEA ROOM TIP: Believe that the business plan is your guide to success. The completion of the plan is only the start of the business. The plan will act as the guide to success and will constantly change as conditions require. The plan will never be complete but will always be useful.
Business planning is a universal discipline and there are as many plans as there are companies. The complexity of the business plan can vary from simple .to overly complex to Byzantine. A classic case study is the story of Compaq Computer, a multi billion dollar computer manufacturer that was launched based on a business plan written on the back of a cocktail napkin.
Many companies however focus on the tress of the planning process and overlook the forest of building a business. Often, the business plan becomes one more document for the corporate bookshelf or the drawer of the planning executive and is not used as it should.
Most effective business planners add only that detail that is informative and productive but does not distract the reader from the core ideas of the plan. Since each plan is a living document that represents a guideline to grow a business, changes can be made as often as required by business conditions. Excessive detail may become irrelevant in the light of new conditions.
TEA ROOM TIP: Start with a bare bones plan that can be expanded or enhanced as conditions warrant. Don’t attempt to create an overly detailed plan that may become obsolete as conditions change.