One of the greatest financial freedoms one can ever enjoy is that of essentially being fully in charge of how you spend your time. The suggestion is that whatever it is you choose to do with your time, it has no immediate bearing on your income, which means you’re not really trading your time for money but are rather engaged in some kind of business activity that generates you your income independently.
Naturally this doesn’t mean you won’t have to do any work at all, because even someone like a shareholder is required to provide some input from time to time, whether directly or indirectly by way of something like a vote or sitting in on the mandatory annual general meeting of a listed company. But let’s start at the very beginning, shall we?
If you’re seeking to get some funding in the form of something like a bank loan from a traditional lending institution such as a bank, then you’ll need to take a formal approach to compiling your business plan, but otherwise the ultimate business plan template is one which leaves plenty of room for the anticipated dynamism which is all set to unfold as you immerse yourself in the world of business. No business plan ever goes unchanged, even in the case of it being one of those 100k ones complied by the world’s biggest accounting and auditing firms as a mere formality for landing a licence to operate in the insurance industry.
Applying programmer logic to a simulation
So it’s going to take a while to compile your business plan in this way, but as far as detailed planning goes it doesn’t get any better than this. You will thank yourself for having taken the time to implement this approach to compiling your business plan, because then sometime in the future when you’re facing various decision points to have to navigate, you won’t unnecessarily spend any time mulling over what may otherwise appear to be difficult decisions.
So what you do is apply the logic of a programmer in the simulation of the possible development of the business, by starting at the beginning and creating a flow diagram of all the possible scenarios you can think of. This is within reason of course, so for example it would be realistic to consider a scenario such as absolutely no clients buying your product or service, 0-10 clients buying, 10-100 and so on, whereas it would be unrealistic trying to consider that every single person on earth would buy from you…
What you then do is make realistic action plans for each eventuality that comes up, such as if heaven-forbid you were out of funds, in your plan you’d clearly state that at a particular point you’re going to get in touch with The Benenati Law Firm to start bankruptcy filing proceedings.
Plan for both the up-side and down-side as both scenarios and everything in between are indeed possible and as you go along you’ll realise that it really isn’t all that difficult. Getting into as much detail as possible doesn’t necessarily mean you’ll spend an entire year just compiling the business plan.