Business
Plan
Research has proven
that businesses with a plan have grown faster, both
in terms of turnover and profitability, than those that
don’t. Whilst a business plan is often mandatory
for those who want to borrow money from the bank or
seek funding from investors, it should not be optional
for the rest. In today’s highly competitive markets,
adequate planning and research is almost certainly necessary
if a business is to be successful – whatever its
size and how ever long it has
been in existence.
So
what is a business plan?
Various terms are used to describe the business planning
process - business plans, business strategy, marketing
strategy, strategic business planning, sales planning
– but they all cover the same basic principles.
When faced with a business planning or strategy development
task it's important to clarify exactly what is required
and that means committing to writing.
A
plan is a statement of intent – how to
organise effort & resources to achieve an outcome.
Take for example a building project – whether
it be a small extension, a new five bedroom house or
a multi-storey office block. You couldn’t start
work without a plan, to determine the design and structure
of the building, the materials to be used, the labour
required, the costs involved and, equally important,
whether the end result will meet the added value, sales
or rental targets envisaged. And so the parallel with
business becomes apparent. In this context a written
plan enables all those involved in managing a business
to plan, review and monitor its development.
Whatever the size
of business, the plan should cover FIVE keys areas:
Marketing
This is the process by which a business decides its
strategy as to what it will sell, to whom, when and
how and then how it does it. This covers everything
from company culture and positioning, through to market
research, new business/product development, advertising
and promotion, PR and all the sales functions as well.
Personnel
People are essential to the success of a business. The
plan needs to cover details of the key personnel who
will run the business, their background, capabilities
and their roles. Employment policies and procedures,
skill requirements and training processes for all staff
also need to be covered.
Operations
An outline of how the business will operate and all
the operational processes involved, including the premises,
plant and equipment required. This section should also
cover matters such as quality control, health &
safety, use of sub-contract services and so on.
Finance
The plan must include spreadsheets of the sales, profit
and loss and cash flow forecasts, together with a resume
of how the assumptions have been arrived at. Details
of any finance needed and where and how it is intended
to obtain it. Also details of how the accounting policies
and procedures will operate.
Risk
Assessment
As no business plan is without risk, it is sensible
to confront any possible shortcomings and explain any
contingency plans or measures to deal with these.
The most important
objective of any business plan is to demonstrate a return
on investment. Without a reasonable return, a business
is unlikely to flourish or survive.
stepbystep
software is a suitable business plan for most
UK businesses – see demo
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