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Monthly Archives: June 2017

Tips Develop Successful Business Plan

Have An Overall Vision

When writing your business plan it is really important to have an overriding vision of what your business is going to do, what it is going to be, and what you want to achieve. Very often it is tempting to get straight into the technical details, the monetary concerns, financial matters, where you will be sourcing supplies, etc. Now all these things will be vital in your business plan, but it has to be held together by a coherent, broader vision.

Remember the proverbial expression ‘not seeing the wood for the trees’? You need to see the ‘wood’ first, then delve in and start examining the individual ‘trees’, meaning the individual items which you will be breaking down later. So a great point is to make sure that you have that overarching vision – and if you cannot find one, then maybe it is an indication that you are obsessing on a few technical aspects that do not necessarily make up a whole business as you had imagined it. A business that makes sense and is going to be sustainable in the future is one that has that clear vision within which all the smaller parts contribute to make it successful.

Contextualise Your Budget

Of course your budget will be extremely important. But sometimes people sort of pluck figures out of thin air, not giving it the context it needs in the business plan to make real concrete sense of how that budget is going to work.

So it is crucial that every time you mention financials in your business plan, to really give them the correct context. When I have worked with clients in developing business plans, there has been a budget or amount set aside for example to be spent on marketing, which has been decided a bit arbitrarily. I mean with no real research, no understanding of what that amount needs to be spent on, and what that budget will truly achieve. It seems to have been put there to fill the need to attribute a certain sum to marketing.

Make sure you are researching each point of your budget, make sure that you are giving it context and it makes proper sense within your overall plan.

Don’t Make Assumptions About Customers

To be an entrepreneur does require plenty of self-confidence, sometimes almost a bloody-minded determination to make your business work. But this confidence spilling over into thinking that you know what ‘the market’ wants can be dangerous, without checking that it’s true. You need to do your research that the market does ultimately want what you will be offering, whatever products or services you will be selling.

That is a great thing to make sure you have in your business plan, that your business will be built around those real customer wants. Do not make callous assumptions, or statements like “I know what people want”, “People are going to love this”, and so on. Have you done your research? Do you really know that the people you will be targeting want your product / service, and crucially do they want it AT THE PRICE that you will be offering it at? Whilst confidence in your plan is fantastic, you must make sure that it does not lead you down a blind alley along a path that is not desired by your target market.

Resources for Entrepreneurs

Market Research Resources
These books can be found in the reference section at the library. Most cannot be checked out. However, you may luck up and find them on an online bookstores at a fraction of the cost.

Print Directories

  • Directory of Associations / Directory of Tradeshows
  • Sourcebook of Zip Code Demographics
  • American Market Place
  • Small Business Sourcebook
  • Best Customers – Demographics of Consumer Demand
  • Survey of Current Businesses
  • Industry and Trade Outlook
  • State and Metropolitan Area Data Book

Online Resources

  • Reference USA
  • ABI/Inform
  • ProQuest
  • Census – Business Census

Above are just a few tools to get you started on your business plan writing journey. If at anytime you feel stuck, contact one of the organizations listed to speak with a counselor. If you need assistance with your marketing or financial plans, they can help you with those, too. Just be sure to have a plan.

Inconvenient Truths UK Business Plans

Start-up businesses are often too optimistic in their income forecasts

We all tend to be over optimistic. There are plenty of high profile, high value projects that ended up with a price tag many time greater than the initial budget forecast – the building of the Channel Tunnel or the Millennium Dome (now the O2 Arena in Greenwich) are just two examples. Getting input from professional business plan writers is one way to deal with this problem.

Having an active plan also means that you can monitor actual performance against your plan and take action if you see that things are going off course.

Business owners do not know what is in their business plans

This can happen when professional business plan writers are brought in. The plan they create is fabulous, it secures the funds the business needs, but all too often the business owner never really understood what was in their plan, so it is of little ongoing use and their business risks going off track. If you hire in professional business plan writers ensure you understand what they have said about your business and that you know how to monitor your performance against your plan.

Start-up companies do a bad job of identifying their target markets

Perhaps one of the most tricky elements is identifying your target markets. It is not necessary to do lots of research but it is important to think deeply about what you know about the people who will buy your products and services. Who are they? How old are they? How wealthy are they? Where do they live? What do they like and dislike? Where and how to they currently buy similar services and products to those you will be providing?

If you have worked through the above questions and based your marketing strategy and sales forecasts on what you discovered, your plan will be stronger. If you also devise mechanisms for monitoring performance, based on the knowledge and assumptions behind your forecasts, you will have a much greater chance of improving your sales forecasts and marketing strategies, as your business develops.

Stop Wasting Your Time

Additionally, simply going through the process of building the plan will provide you with a great deal of information you will need while running your business.  Additionally, as the business grows, you will want to use the business plan to help guide you in your future planning and decision-making processes.  Finally, if you expect to raise money using investors – whether friends and family or through venture capitalists, you will need a good, strong business plan.

The Business Plan: Types

The first thing you’ll want to do for your business plan is to determine what it is going to be used for.  Basically, there are four types of business plans:

Startup plans – sometimes this will be more of an overview of the business with expected sales and expenses, discussion about the product or services, the market and marketing.  These plans can be very short (10 pages) and effective for the startup phase of the business.

Operational plans – that focus on how the business will operate, heavily focused on processes, systems and people.  Ideally, cost analysis of the various processes and systems should be included, but often, current financial information and projections are used in the plan.  These can be equated with business architecture and strategic planning.

Presentation plans – these plans are used to attract partners, donors, executive teams and investors.  The key, here, is that this plan is used to attract them. Rarely will they be the final piece of information required.  In this type of plan, we focus on outcomes: the product and why there is a great need for it in the marketplace, what an investment will do to bring the product or service to market and what type of return one might expect as a result of investing or partnering with the company.  It will normally include a lot of visuals and is, essentially, a marketing piece.

Investor Grade Plans – these are the all inclusive business plans that combine all three of the other plans, with the addition of exploring risk.  This is the epitome of a marketing and investing tool that potential investors will try to tear holes in (versus trying to justify) to determine whether or not they will invest.  The executive summary, alone, needs to be powerful enough to engage potential investors to read further.  Financial plans need to extend three to five years.  This type of plan requires the greatest investment in research and financial planning of the four plans.  It will be the authority on operating the business.

The Business Plan: How?

Many people begin their business plans with a simple template.  Templates can be found all over the internet, in books, through SCORE (Service Core of Retired Executives) the SBA (Small Business Administration) and the SBDC (Small Business Development Centers).  You can take courses on how to develop the plan, or you can work with a consultant or business plan expert (Note: I emphasize with. For your business plan to be practical, you need to fully understand what is going into the plan, why it’s there and what to do with it!).

The most important aspect of the plan, however, is that it needs to work for you and your business.  If you are a visual person, you might create a plan that is pictorially based.  If you are a task-oriented person, you might use bullet points to describe many areas of the business.  If you are a story teller, create a story, first, before even looking at a template.  Templates can be intimidating given all that is required.  Take it one step at a time.

The Business Plan: When?

When?  Your business plan should be your road map.  How often do you look at your road map when you are going somewhere you’ve never been?  Hopefully, you will look before you begin to veer off course.  Does this mean that you need to look at the whole thing, from beginning to end each and every day?  Not practical.  So when do you look at it?

The easy answer is: depends on your industry.

The better answer is – it’s too big to eat all at once.  Just like eating an elephant, you need to break it down into manageable pieces.  That means that you will want to put the marketing plan in one folder, put the SWOT analysis into another folder, your financial information in another, your processes in another, etc.  Your business plan does not necessarily need to be a single three inch thick document.

With the plan separated, it becomes much more practical to use and update.  You might do marketing every day, but do your SWOT only once a month or once a quarter.  Ideally, you’ll manage your finances regularly and can look, at any time, to see where the business is financially.  As you update any area, stick it in the appropriate area.  Once a year, you may wish to pull out a whole section, or the whole plan section by section to review and make plans for the following year.