The business plan has gotten a bad rap. We have been conditioned over the decades to believe that a business plan is a mysterious document that leers at us from the shelf where it seems to just gather dust. We have come to believe that it takes an MBA to read the thing, let alone write it.

Fortunately, these are misconceptions, fish tales. I cannot overstate the important role a business plan plays in the success of your business (remember the blueprint analogy in last month’s column?). I believe that we have become so afraid of the unknown that we are frozen in place, unable to move forward with the business of business.

A business plan is simply a written declaration about what your business “does” or “sells” – that is, your business description or mission; to whom you sell it – your target market; how you let these people know that you are selling to them — –your marketing strategy; and how you know when you have been successful – that is, the milestones and benchmarks that let you know you have “arrived.”

Sounds too simple? It was meant to be. The process of writing a business plan creates the opportunity to think about each of these cornerstones of your business. The process forces you to really think through how the business is going to succeed over time. The process makes you a stronger business person, putting you in a stronger position for success.

Once you have captured the essence of your business on paper you can go about the analysis of what running your business really entails and what the impact to your bottom line is. Do you have start up costs? Have you identified any hidden costs? Will you be able to service your clientele with your existing or projected staff levels? Will your projected income cover your costs and allow you to turn a profit? If not now, then when? Will your projected cash flow – what is left over after subtracting expenses from income – be positive or negative? If it is negative, do you need to seek outside funding?

If you are satisfied with the answers you uncover through this process, then congratulations! You have just convinced yourself to launch or grow your business. So, your business plan’s work is done then, right? Wrong! Keep the dust from settling on your plan - — pull it out at least annually to do a “litmus test” on the health and direction of your business. This time your questions should graduate to the next level. Questions like, have I targeted the right market? Are my marketing efforts bringing in my projected volumes? If not, what should I do about it? Were my projections in the ballpark? If so, how can I build on them? If not, how can I correct these projections? Have I outgrown my plan? What can I do to expand – or, do I want to expand?

Your business plan is a living document. It is a tool that can keep you in “business” rather than “busy-ness.” It can save you a lot of headaches, sleepless nights and pie in the sky misconceptions about your business and where it is going. I will even go so far as to say it is more important to the success of your business than your business card.

Hmmm ...business cards. That is a topic that is much broader than you might think. Let’s take a look at that next time.

(Editor’s Note: Wendy Miles, Director of Customized Training and Special Programs at Olympic College, oversees the operation of the Kitsap Business Assistance Center (KBAC). For partnership opportunities, contact Ms. Miles at 360-475-7786. Business Development Specialist at the KBAC, Sharon Zerr, contributed to this article and provides individual counseling for businesses. For business counseling needs Ms. Zerr can be reached at 360-307-4220.).