[My Biggest Mistake] Not Putting a Business Plan Down on Paper

I’ve built a good, solid business here in Milton, Vt., over the past seven years, but it hasn’t been easy. Part of the reason we’ve had to work so hard to grow State Pest Control is that I jumped into the business so quickly that I didn’t take the time to put a business plan down on paper. When you walk into a bank without a business plan, you’re not likely to walk out with the loan or line of credit you had hoped to secure. Instead, you’re forced to seek alternative means of funding your capital investments, and your potential for growth becomes more limited.

The lack of capital funding has held us back on a number of occasions, as we have put off hiring more employees, buying more trucks, advertising and investing in technology. I have a plan in my head of how all of this should go, but my day-to-day responsibilities are so demanding that I haven’t been able to stop long enough to develop a carefully thought-out written plan. It’s on my immediate to-do list, however, I realize that we need the extra push of additional funding to grow to the next level. In fact, I expect my new business plan to help State Pest Control in a variety of ways. It will:

• Lay out the details of my current situation as well as my growth plans so that banks or other investors can see the strength of this company.
• Document our operational procedures so that a backup person could temporarily run the business should I want or need to take some time off. (Seven years without a vacation? I must love this business!)
• Define our target markets so that we can develop strategies to attract, retain and more deeply penetrate the type of accounts that optimize our profitability.
• Analyze our competition and explore opportunities for improving our market position.
• Set a schedule for growth in terms of capital investments, new hires and geographic expansion.
• Anticipate challenges so that we can prevent or mitigate potential risks.
• Determine the value of the business so we can quantify our growth in terms of dollars and negotiate wisely should we ever decide to sell.

When entrepreneurs ask me for advice about getting their businesses off the ground, I tell them to start by evaluating whether this is truly the right industry for you. If it is – if you love pest control and are willing to put in the hard work and long hours it takes to succeed in this business – then you need to commit to running your business with honesty, integrity and sincerity, and look for employees who share your values. Choose a company name that instills confidence in your brand. (“State Pest Control” has been extremely beneficial to our business.) Take the time to get to know your customers’ needs and educate them about pest control. Understand their concerns and respect their budgets. Deliver unparalleled service.

Remember, though, that no matter how well you do all of the above, you aren’t likely to reach your full potential unless you make the time for thoughtful strategic planning before you open your doors. Study the market, do some soul-searching about your goals and objectives, and develop a formal business plan that documents all the details. You’ll open doors for yourself and put your business on the path to success.

As told to PCT contributing writer Donna DeFranco.