Creating
a Business Plan
Whether you are starting
a new business or running an existing one, creating
a solid business plan is vital to improving
your chances of success.
For
a new business
You need to know what chance there is of making a return
on your investment. You will increase your prospects
of obtaining finance from banks or potential investors
if you can prove that you have weighed up the risks,
have a product or service that people will want, and
understand what the competition will be like. So in
creating your plan you must deal with the critical issues
that set you apart - your strengths, your weaknesses,
the opportunity and the potential threats (SWOT analysis).
Some of the key points
that need answering:
• How do you
know your product/service is a good idea?
• Have you researched competitors and rival products?
• What makes your business different and likely
to succeed?
• Have you considered all the needs and motivation
of potential customers?
• How much expertise do you have in management
and organisational skills?
• How much money will it take to set up, to staff
it and to market it?
• How long will it take before you can start paying
off the initial outlay?
• What problems are there likely to be - and how
you will overcome them?
• What will you do if things don't go as well
as you hoped?
• Have you allowed for the day-to-day operational
issues such as recruitment, employee management, accounting
procedures, taxation, health and safety, national insurance
and so on?
Setting down all
of these ideas is essential for the people to whom you
will be presenting the plan but the process is just
as important to you, because the more you know about
the way ahead, the better organised you will be and
the easier it will be to recognise and deal with challenges.
For an existing business
If you are creating a plan for an existing business,
what needs to be covered will depend on its purpose
and objectives. If it involves a new project or diversification,
then many of the above points will apply as for a new
business. If it is to develop or improve the present
state of the business, then it will be mainly a case
of doing a reality check on what exists and setting
out the case as to how to go forward.
Some key points here
would be:
• Doing a
thorough SWOT analysis on the business
• Examining the marketing strategy in relation
to own performance and competitors
• Reviewing the marketing plan – its effectiveness
and whether any improvements are needed
• Reviewing personnel strategy – whether
any new skills or training is required
• Examining operational procedures, suitability
of premises – can any efficiencies be achieved?
• Analysing financial performance – what
will it take to reduce costs and improve profitability?
• Examining contingency plans by doing an up to
date risk assessment
stepbystep business
plan software will provide full guidance on what you
need to cover - see demo
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