The new year brings many small businesses a little downtime in January (unless you're a CPA, of course).  This is a great time to dust off your business plan and review your goals for 2010. 


Here are five tips for getting the most out of this process:

(1) Write the plan yourself--at least the first draft.  After all, no one knows your business the way you do.  You may want to hire a professional to help you polish your plan once it's written, especially if you'll be seeking an investor and/or business loan this year.  However, write the first draft on your own.  There are several templates available for free on the Internet.  You can also send me an email and I'll send you one of the templates I use.

(2) Write the plan in third person.  "The ABC Company plans to..." not "We plan to...".  This may be a personal preference, but it definitely makes your plan sound more professional.

(3) Recognize that your business plan is a living, breathing document.  Be flexible.  As you receive feedback, take it in stride.  Use it to improve specific areas of your plan.  You're building a roadmap here.  Without it, it'll be hard for you to visualize how you'll get from Point A to Point B.  However, just like taking a long road trip, there will be times you'll venture off the beaten path for a little extra sightseeing.  This will happen, and it's OK.  Your plan will help you come back and get focused again.

(4) Don't try to fool anyone.  Disclose everything.  Investors are saavy enough to find the holes in your plan.  So, don't leave unanswered questions.  Plus, a business plan is a representation of you--of your honesty and integrity.  Address everything--both positive and negative.  

(5) Don't ignore the competition.  Everyone has competition.  If you're over-confident now, investors might think you'll have difficulty recognizing important factors in the future. 

Remember, people don't invest in ideas and products--they invest in people.  And, plans don't sell new business ideas to investors--people do.  This plan is just one of many tools you'll use to keep yourself on track--and to help others understand how you're planning to reach your goals. 

Do you have other tips you can share?