“If you are failing to take the opportunity to get into business planning, and by doing so proactively shape and design your life, business and future – someone else will take that opportunity away from you. Then, it will be irrelevant what your intentions were. In doing so, you are planning to fail!”
Having a business plan can be a valuable asset for any organization. A good business plan addresses all areas of a business such as marketing, finance, staffing, operations, budgeting, startup expenses and contingency plans. This article will provide a brief overview of what is included in the business planning process.
Getting Started With Your Business Plan – First, Facing Reality
Before preparing a business plan, you will need to do some research to assess your current condition, your current reality. This includes doing some research on your skills, knowledge, experience, connections, your industry, your market, your customers, and your competition. This will help you understand what type of investment may be needed to finance the startup or continued operations of your business. You will also need to document how much you will need to spend each month and each year on expenses, payroll, inventory and basic operating expenses. Having an initial idea of what will be involved, will allow you to write out a detailed plan. Your initial plan is your starting point, your minimum requirements your basics. Don’t try to go into details as such, remember “my starting point”.
Business Plan is continuously evolving document not the static once in a lifetime exercise
Another interesting point to mention about your plan is that it should be perceived as a Work in Progress, you add and reduce as you go along. You abandon, you improvise and experiment carefully considering your environment, circumstances, opportunities, threats. Please note it is impossible to predict the future with absolute accuracy. Some deviation will be unavoidable.
Including the Essentials Into Your Business Plan
The basic sections of a business plan include:
- Executive Summary: this is an introduction of the business and what it aims to achieve.
- Company Summary: this is an overview of the company, its location, owners, staff and business structure.
- Industry/Market Analysis: this is where research will be necessary. You should research your industry outlook, trends, customer behavior and buying habits, demand for your product or service and economic conditions or influences affecting your industry.
- Marketing Plan: in this section of the plan, you will need to explain how you plan to reach your target market. This means, identifying your ideal customers and their demographics. You will also need to detail how you will advertise and promote the business. You need to be clear on your USP, value that you bring to the table and your strengths.
- Operations Plan: this section explains who you will operate and includes information about your office, facility, vendors, employees, consultants, advisory board, payment and credit policies, etc. You must operate in the areas of your expertise, strengths and passions. Nothing beats expertise when it is topped with passion and motivation.
- Management Summary: a good business plan explains who the owners and management are, their background, experience and education, organisational chart, functions and connections. This is your orchestration, your initial draft of the system that will bring you results you are after.
- Financial Plan: a basic business plans lists its startup costs and provides four basic statements which are: the income statement, sales forecast, cash flow and balance sheet. Don’t go into details, you can’t predict what your stationary, and payroll bill will be 3 years and 5 months from today…
You will be better off and your business will be positioned for success if you don’t take business planning lightly
Writing a business plan may take some time and effort but will pay off in the end. Make it simple, concise and effective. More than anything user friendly. Certainly not in the way that you will have a document placed on the shelf in your office but in the way that will help you get clarity around what you are trying to accomplish, what you need to sacrifice and what additional resources you need to pour in.
Business Planning Is Really Thinking your own way through for future benefits
If you feel overwhelmed, stressed out and stuck by the process you may want to employ the services of an outside consultant, business coach or accountant to assist you. Just bare in mind that if you are struggling to outline your plan, thinking devoted to its production will enhance your chances once the business commences. Having a detailed business plan will make it easier to obtain funding for your business and serve as a blueprint for your day-to-day operations.