What is a Skinny Business Plan?
A skinny business plan is a lightweight, high-level document that briefly outlines the business’s mission, goals, competitive landscape, market need, and initial strategy. Unlike traditional, in-depth business plans, a ‘skinny’ version is a simpler version of a regular business plan. Skinny business plans focus on the key elements of any successful business plan without needing to go into too much detail.
Advantages of a Skinny Business Plan
There are several advantages of using a skinny business plan over a traditional business plan approach.
- It is a quick and easy way to get a broad overview of a business without the need to conduct a thorough analysis.
- It prevents the business from getting overwhelmed by the sheer amount of data and analysis.
- The brief nature of a skinny business plan makes it easier to break down and present to stakeholders.
- It is a great way to gain information about the competition and determine how a business’s offering is different and can stand out in the market.
When to Use a Skinny Business Plan
A skinny business plan is convenient for a variety of scenarios.
- Early-stage entrepreneurs looking to determine whether their business idea is worth pursuing.
- Established leaders who need to assess their current strategies and define new goals.
- Businesses whose owners need to present their ideas to potential investors or stakeholders.
- Fast-growing companies that need to quickly test out a potential new product idea.
How to Write a Skinny Business Plan
Creating a skin business plan doesn’t have to be a daunting task. Below are the steps to help one get started:
- Define the Mission and Vision:
The first and most important step in creating a skinny business plan is to determine the direction of the business and what it aims to achieve. This can be done by creating a mission statement and a vision statement. The mission should address why the company exists and the vision should explain the long-term goals and objectives the business wants to reach.
- Analyze Market Research Data:
Businesses should have a deep understanding of the market they serve and their potential customers. Analyzing market research data allows businesses to better understand the competitive landscape and identify potential trends. Additionally, this helps to determine whether there is a need for the product or service being offered.
- Identify Your Competitive Advantage:
In order to stand out in the market and compete with other businesses, it is important to figure out what makes a business’s offering unique. Identifying the core advantages the business can offer, then leveraging from those advantages to differentiate in the market.
- Outline Your Strategy:
Once businesses have identified their competitive advantage and the market need, it is necessary to outline the strategy for how the business plans to execute on its vision. This should include a list of objectives, goals, and milestones the company wants to reach. It should also outline the implementation plans for achieving those goals.
- Evaluate Operating Resources:
The business should assess the resources available for implementing its strategy and objectives. This includes finances, personnel, physical resources, etc. Having a clear understanding of what is available helps determine the feasibility of reaching business goals.
- Set Deadlines and Monitor Progress:
To ensure the business is reaching its objectives, it is important to set reasonable deadlines and create a timeline to monitor progress. This will help prioritize tasks, ensure the business is on track and help make course corrections, if necessary.
- Put it All Together:
Once the pieces of the skinny business plan have been written out and organized, it should be compiled into one concise document. This is the document that will be used to present the business’s objectives and strategy to investors, share with stakeholders, or review internally.
A skinny business plan is a great tool for business owners who want to quickly outline their high-level vision and strategy. By focusing on the most essential aspects of a business plan, businesses are able to quickly assess their market and competitive landscape, define their competitive advantage, and create clear objectives and goals.