What problem solving skills are essential for writing effective business plans?

An innovative solution that can assist in a living breathing live data supported business plan is Empiraa a SaaS platform developed by Ash Brown. To be truly useful a business plan needs to be accessed and understood by all in the business. By connecting with all of the businesses data sources and setting vision and goals, in a visually pleasing dashboard, Empiraa encourages ownership and accountability for the business plan. Many years ago I wrote a book on business planning and it's something I really believe in. Advocating for a business plan can be a little controversial but I think Ash Brown has created an innovative solution to keep the business plan alive and essential. I work with the Empiraa team.

Effective business plan writing requires analytical thinking to evaluate market conditions and identify business opportunities, critical thinking for strategic decision-making, and creative thinking to overcome challenges and innovate. Financial modeling is also crucial for devising realistic financial projections and scenarios.

This approach reminds me of people who teach children to read using the boring 'Dick and Jane' books versus the fun 'Cat in the Hat' books. A fun way to approach business planning is with an interesting story. An example is the challenge salmon fish farmers have with sea lice. In the example the discussion is whether sea lice is (a) a containment problem to stop sea lice getting into the fish pens or (b) a cleaning problem that can be fixed by washing the fish or (c) a surface water issue that can be solved by keeping salmon in deeper water or (d) a nutrition problem addressed by change of diet. This example highlights how difficult it is to define the problem in a way that your solution provides the best solution.

One of the most important things to remember about a business plan is its actual implementation in reality. Over my career I have seen literally hundreds of plans for great ideas that are hampered by their own grandiosity. It is fair enough to "shoot for the moon" when preparing something for potential investors and the projected upside of what you are offering but be sure to have a doable executive summary with short term goals you can realistically obtain as well. You will find that if you set moderate weekly benchworks that you can reach...you will achieve ultimate success quicker than you think and always feel a sense of accomplishment.

- start up about a dozen companies and then you'll start to get the hang of it - know the markets you will serve and why they'll buy - never hire someone from a "big company background" to start a new company- they're too reliant on staff and are used to having a team to lean on

This isn't part of a business plan. This is part of the strategic analysis before you write a business plan. Don't start writing a business plan until you know the problem (pain point), the solution you believe is the best option, and a clear understanding of how to get your solution to market. Then expect to constantly update it as you learn more!

This is where the lifelong habit of reading kicks in. Different books provide us with varying perspectives. These enrich our worldview and give us the ability to craft solutions. Reading unlocks creativity for effective problem solving.

A business plan evolves as it is created. It is an iterative process and even when deemed complete its best to revisit and revise it annually. 1) Data gathering - including financials, GTM, operations, sales, marketing, etc. 2) Assessment - Porter's 5 forces, SWAT, critical event register, etc. 3) Creating the plan - Here is where you need problem-solving skills to create a plan using the outcome of the assessment. ex: How to shift culture, resolve working capital constraints, identify new markets to target, decide which products to retire, determine the ideal sales motion, etc. You need curiosity, the ability to ask many good questions, and skills to identify the experts ("WHOs") to best answer those questions.

Business plans and solutions are only useful if they are implemented effectively. When time is invested in strategizing and developing plans, there is a need for follow-through. When creating a business plan, consider the practicality of carrying it out. Plan for potential obstacles or detours that may need to happen.

With respect to learning from feedback, it is important to go to people/ organizations that you do not know. Earlier in my career, I went to a hospital emergency department to learn about stroke workflow and ask questions. In one case a very busy clinician, who I just met, was so intrigued by what we were doing, he spent several hours with me, challenging me and in the end became one of our biggest supporters. My point is to talk to people and ask them about their problems openly, don't start with your solution. Then in your business plan, it becomes the basis of executing a plan to solve that problem, and your product is the embodiment of that solution. The product can change and evolve.

I believe that feedback is the key for every type of effective communication not just in business, but also in personal relationships. The way we receive and give feedback can either lead to success or failure.

Mindfulness skills are essential for problem solving, since they allow space for creativity without the interference of conditioning, ego, pressure, bias, etc.

I like that the question focuses on problem solving skills. And the solution is as simple as first identifying the problem, and deciding what can be done about it. In a business setting, what business can be designed to address the particular problem. Common ways to address the problem would be to examine the cause of the problem, aiming to eliminate that cause for your clients. You could also offer an alternative solution to solutions already available, and that difference becomes the selling point of your business. If it’s not a problem that can be eliminated, try offering solutions to mitigate the impact of the problem.

A business plan should evolve into a strategic plan to help you pivot in the ever-changing economy. Using inductive reasoning when a market trend comes into play is crucial. How can this current trend help or hurt my business and why? Then, you can planning out the next steps to pivot accordingly.

Effective business planners are like detectives. They are experts at anticipating challenges and solving mysteries before they even arise. They possess critical and dynamic thinking abilities, are skilled in data analysis, and are scenario wizards all rolled into one. Using sharp analysis, creative forecasting, and clear communication, they transform every problem into a stepping stone toward greater success.