Strategies: Business plans, planning, still relevant

Crowdfunding. The Cloud. Minimum viable product. Globalization.

Start-ups and small businesses have a whole new vocabulary. And you need to consider a lot more when launching or growing your company.

What's one thing you can do to get a grasp on these new developments? Develop a business plan.

Every month, entrepreneurs launch a huge number of new businesses in America: more than 500,000 employer businesses and more than 2 million sole proprietorships. That's a flood of new enterprises.

What's one thing they can do to increase their chances of success? Develop a business plan.

Every year, existing businesses face challenges — new competition, new technology, economic ups and downs.

What's one thing they can do to increase their chances of survival and growth? Develop a business plan.

But the idea of creating a business plan seems overwhelming to some and outdated to others. When everything in business changes so quickly, is a business plan really necessary anymore?

Absolutely! Remember, the planning, not the plan, makes the difference, and that contributes to your eventual success.

Developing a business plan is a great framework for thinking through the fundamentals of your company; understanding your market, competition and industry; and identifying a sustainable strategic position.

When I decided on the title Successful Business Plan: Secrets and Strategies for my first book in 1991, I intended for the adjective "successful" to apply to the word "business." In other words, this is a step-by-step guide to help you develop a successful business, not just create a plan.

But things have changed since it was first published — and business plans need to change along with them:

• Crowdfunding. This recently developed fundraising method can help launch new companies, create new products and develop an avid customer base. Find out which businesses have the most success with it and when to use it.

• The Lean Start-Up movement. You can leverage new technologies and streamline processes to get your business up and running with fewer dollars.

• Minimum viable product. Customers are increasingly willing to accept Version 1.0 qualities in many products, so it's important to learn how to expedite and iterate to get your items to market faster.

• The Cloud. In-house computer servers are old school. By taking advantage of the Cloud, you can gain powerful technological capabilities with fewer costs and greater ease of use.

• Sample PowerPoint. A slide-by-slide guide shows you what investors want in a quick overview of your business.

This sixth edition includes insights from Seth Goldman, chief executive of HonestTea; Kay Koplovitz, former chairwoman of Kate Spade; and Bill Rancic, winner of the first Apprentice series and serial entrepreneur.

Taking the time to develop a business plan is crucial for initiating, growing and saving companies. Three times at critical junctures the business-plan process has helped me save and grow my own venture.

By developing a business plan and thinking through the tough questions, entrepreneurs greatly improve their chances of success.

Among Rhonda Abrams' recent books isEntrepreneurship: A Real-World Approach. Register for her free newsletter at PlanningShop.com. Twitter:@RhondaAbrams.