If entrepreneurs are anything they are impatient.  Myself included. I am a huge proponent of the; Ready-Fire-Aim, approach to life.  Funny isn’t it coming from a Project Manager. Planning is just so much dry work that most folks want to skip it or the prospect stops them from even getting started. You can’t avoid doing a plan but, what you can do is chunk it down into bite size chunks. The first chunk to start with is, a business charter.  

What is a charter? Well first let me tell you that it isn't additional work. A charter is the framework on which you will next build your plan. But it is much shorter.  You are probably already thinking (worrying) about the things we will put in your charter anyway. So, drag your fears out from under the bed, out of the closet and put them down on paper. You will find that they aren’t nearly as scary once you do.

A charter for your business should be able to be completed quickly.  For most startup business it should take less than a day.  When you build your plan you incorporate the Charter into it.

A charter defines the what, when and why of a piece of work.   Yes, a business plan does that too but it goes way-too-deep and can be like trying to turn the Titanic. So chunk it down.

Your business charter should also be a living document.  Keep versions as you update it so you can look back and see how you have learned from your mistakes.

What is in a Charter?

The charter is a tool to move you from ideation to creation, from concept to reality. Don’t waste time trying to make it perfect. Do it and get on with your business.

Your business charter should ONLY contain that which is necessary to get you moving.  Specifically it should identify;

1. A working name for your business (not  your final name)
2. Who are the key people involved – Sponsors
3. Where is it located (city, county, state, or country)
4. A brief background of how you came up with your idea
5. Your Vision. Don’t get too lofty just write what you want to do
6. Ideal customer – Identify your IC; Give’em a name, a personality
7. Goals/Metrics – Where are you going and how will you know when you are there?
8. Scope in and out – What are the edges of your work. Again don’t be too crazy about this just hit the high points. You can come back and add more detail later. (remember it is a living document)
9. Assumptions – This is one that is often forgotten.  What are your assumptions about the business, your customers, their needs, your abilities, the economy, you name it.
10. Major Milestones – What are the big one, three, six, and 12 month milestones. These help you get your vision set and prioritize your work, “Is it taking me toward one of these goals?”
11. Team and roles – again be brief if you are the only one. Then say Me. But I bet there are others.  The post office, your Internet provider, your suppliers, your graphic designers, anyone.
12. Risks – Ok this is where you need to spend a few minutes.  Think about all the things that could go wrong.  Get a beer and get all depressed.  But then think of all the ways you could recover from them.  And you can,  you always have in the past.
13. Budget – finally there is the budget. How much to you think it will cost to start out.  Again I am not asking for a doctoral thesis in accounting.  Just throw out the numbers that you know. This is a LIVING document.

Even if you create the 'charter' (which looks nearly identical to a formal business plan), if you're seeking investment capital, investors want a business plan.  A full, thorough, well-thought out business plan with details, especially financial details demonstrating how and when their investment will make a profit.  No matter what you call it, without taking the time to create such a document you will have a tough time finding capital.

I firmly believe that if you fail to plan - you plan to fail. 

I seem to have not communicated very clearly.  I also firmly believe that if you fail to plan you plan to fail. But in counterpoint if you plan and don'tdo anything. Why did you plan at all.

When I speak of being a proponent of the ready-FIRE-aim approach I am not saying to be random.  If you have never fired a gun before you first must get READY; point it in the general direction of the target, FIRE (do something) and then AIM; see where the bullet landed and readjust. So really it should read

READY - FIRE - AIM - FIRE - Aim - Fire - fire - aim.....

What I am trying to encourage is a different approach, maybe, to planning.  One where you do just enough (tactical) planning to get moving and learning what your business is about and THEN you can do some real Strategic planning with the wisdom of experience.