A business plan serves as a foundation for a company in its early stages. It aids in the development and understanding of a business strategy and enables investors to recognize the company’s potential. When creating a timeline or schedule for a business plan, it is essential to consider both the big picture and the finer details to stay on track while starting and running a business.
Key Facts
- Identify key milestones: Start by identifying the major milestones that need to be achieved in order to launch and run your business. These milestones may include legal procedures, acquiring licenses and permits, securing a physical space, developing and packaging your product, hiring employees, launching marketing campaigns, and officially opening your business.
- Consider past, present, and future: Take into account what you have already accomplished and include those milestones in your timeline. This helps investors understand the progress you have made and the remaining steps. For example, you can include market research you have conducted or relationships with suppliers you have established.
- Create a timeframe for each milestone: Assign a start date and an end date for each milestone. Some items may only require a due date. Consider interdependencies between milestones, as some tasks cannot be started until others are completed. For example, you cannot open your business until you have secured your permits.
- Include short-term and long-term milestones: Your business plan should not only focus on immediate goals but also include milestones for the next one, three, and five years. This could include plans to add new product lines, expand facilities, or move into a new office.
- Use the right format: Present your timeline in a way that is easy to read and follow. Consider using a Gantt chart, which visually illustrates a project’s schedule and shows the interdependencies of specific tasks. You can create a Gantt chart in Microsoft Excel using a free template or use specialized Gantt chart software like SmartSheet.
Identifying and Scheduling Key Milestones
There are numerous tasks to complete when launching a business. Identifying key milestones is crucial in determining how to create a timeline or schedule. These milestones represent the tasks that must be completed to launch the business.
Key business milestones may include:
- Legal procedures such as incorporating the business or establishing a partnership
- Obtaining all required federal, state, and county licenses and permits
- Securing an office, retail, or manufacturing space
- Designing, developing, and packaging a product for sale
- Purchasing business items such as a POS system, shelving, or other materials
- Hiring employees
- Launching a marketing campaign
- Officially opening the business
After scheduling the major milestones, smaller targets can be incorporated. These may include creating marketing materials and scheduling employee interviews. The smaller milestones contribute to the larger ones.
Considering Past, Present, and Future
When creating a timeline for a business plan, it is important to consider past accomplishments. Achieved milestones should also be included in the timeline. This information helps investors understand the progress that has been made and the remaining steps.
A timeline in a business plan may include market research that has been conducted or relationships with suppliers that have been established.
Assign a start date and an end date for each key milestone. Some items may only require a due date. Consider interdependencies between milestones, as some tasks cannot be started until others are completed.
For example, a business cannot be opened until the necessary permits have been secured. However, certain tasks can be completed simultaneously, such as working on marketing campaigns and obtaining business items.
A business plan should not only focus on the immediate future. Include milestones for the next one, three, and five years. This could include plans to add new product lines, expand facilities, or move into a new office.
Using the Right Format to Create a Business Timeline
Business plan timelines have many interrelated components and complex schedules. Therefore, it is essential to present the timeline in a way that is easy to read and follow. Consider using a Gantt chart, which is a useful tool for visually illustrating a project’s schedule. Gantt charts also show the interdependencies of specific tasks, which is necessary for a business plan timeline. A Gantt chart allows for the input of start dates, end dates, and hard deadlines.
A Gantt chart can be created in Microsoft Excel using a free template that can be downloaded from the Microsoft website. Specialized Gantt chart software, such as SmartSheet, can also be used. It includes a preformatted template that allows for the easy addition of tasks and dates, the establishment of hierarchies, and the delineation of dependencies.
FAQs
What is a timeline in a business plan?
A timeline in a business plan is a visual representation of the key milestones, tasks, and deadlines involved in starting and running a business. It provides a roadmap for achieving business goals and helps keep track of progress.
How do I identify key milestones for my business plan timeline?
Key milestones are the major accomplishments or events that need to be achieved in order to launch and run a business. To identify key milestones, consider the following: legal procedures, licenses and permits, securing a physical space, product development, hiring employees, marketing campaigns, and the official opening of the business.
What should I include in my business plan timeline?
A business plan timeline should include the following:
- Key milestones with start and end dates
- Smaller tasks and deadlines that contribute to the key milestones
- Interdependencies between tasks and milestones
- Short-term and long-term milestones (1, 3, and 5 years)
What format should I use for my business plan timeline?
A Gantt chart is a commonly used format for business plan timelines. Gantt charts are visual representations of project schedules that show the start and end dates of tasks, as well as their dependencies. Gantt charts can be created using Microsoft Excel or specialized Gantt chart software.
What are some tips for creating a business plan timeline?
Here are some tips for creating a business plan timeline:
- Be realistic about the time and resources required to complete each task.
- Consider the interdependencies between tasks and milestones.
- Include some buffer time in your timeline to account for unexpected delays.
- Review and update your timeline regularly to ensure that it stays accurate and relevant.
What are some common mistakes to avoid when creating a business plan timeline?
Some common mistakes to avoid when creating a business plan timeline include:
- Being too ambitious with deadlines.
- Not considering the interdependencies between tasks and milestones.
- Not including buffer time for unexpected delays.
- Not reviewing and updating the timeline regularly.
How can a business plan timeline help me secure funding?
A well-crafted business plan timeline can help secure funding by demonstrating to investors that you have a clear plan for how you will use their money. It shows that you have thought through the steps involved in starting and running your business and that you are realistic about the time and resources required to achieve your goals.