A couple of weeks ago, I attended my Headliners Toastmaster’s meeting in the Women’s Enterprise Centre boardroom (I don’t even have to go outside into the snow to get to these meetings!). My fellow Toastmaster Glenn Bunston delivered an excellent presentation about his finance background, work experience and education. During his speech, he informed us that although it is possible to mathematically calculate and measure risk using sophisticated formulas, risk most certainly can’t be controlled.
His comment reminded me about all the work that goes into the development of a business plan. A business plan is a living document that explains the enterprise, identifies the business goals, and explains how these goals will be achieved. It also is a tool the entrepreneur can use to forecast potential risks, and minimize the consequences should those risks occur. While it is impossible to identify all potential risks and future problems, a business plan is an excellent tool to help a business owner calculate risk and avoid as many pitfalls as possible. A solid business plan is one element in an entrepreneur’s formula for success!