The 2 Figures Inside Your Business Plan That Determine The Price You Need To Charge

In 2007 I attended an annual conference for a franchised building company.

One of the speakers at the conference was a master franchisor from New Zealand who had just sold his company for $15 million to a private equity group.
This successful entrepreneur talked about a lot of different aspects regarding what it takes to run a successful building company and in particular, a successful business.

One of the things that really stuck in my mind was what he said about business plans.

And after emphasizing just how crucial it was for every business owner to produce and update their own business plan, he then shared how he carries his own business plan with him everywhere he goes and refers to it every day.

When thinking back to that presentation, I remember seeing this business leader standing there on stage with his briefcase containing his business plan by his side!

Now I know he didn't literally carry his business plan with him everywhere and certainly not on stage, however, that is the visual memory that has formed over time and it's what I think of every time we refer to our own business plan.

The truth is, business plans do not need to be overly detailed or complicated. They really can be as simple as a budget forecast.

So rather than get bogged down in the details of a full business plan, here are the fundamentals for creating a business plan and the two key figures inside your plan which determine the price you need to charge.