Business Plans
What is a Business Plan?
A business plan is any plan that helps a business look ahead, allocate resources, focus on key areas and make preparation for any problems or opportunities that may arise.
There are many names for business plans; there are strategic plans, investment plans, expansion plans, operational plans, annual plans, internal plans, growth plans, product plans, feasibility plans and so on. They are all business plans, but each has a unique position and function within the business.
Many business people view business plans as being only necessary when they have to approach a bank for finance, or to aid in the sale of their business, or when they are initially starting the business. These are important roles of a business plan, but they are important if the business wants to maximize profitability and sustain growth for the years ahead.
Who needs a Business Plan?
Anyone who is running a business or intending to start a business needs a business plan, in what ever form they may take. Simply put, running a business without a plan is like bush walking through a national park without a compass or map: you are traveling blind. With a plan you can set objectives, establish priorities and allocate cash flow.
You need a Business Plan if:
- You are starting a new business - basically it includes a summary, mission statement, keys to success, market analysis, and break-even analysis.
- You are applying for a business loan.
- You are looking for investors - they invest in people, ideas, track records, the market, technology etc.
- You are wanting to increase sales and improve profitability.
- You are working with a partner in the business - defines and allocates roles and responsibilities.
- You are going to communicate with your management - they need to know where the business is going, and how it is going to get there, so that they can feel committed to its success.
- You are planning to sell the business - it gives potential buyers an overview of the business.
Specific types of Business Plans:
- A start up plan - an outline for the start and direction of the new business.
- Feasibility plan - a simple start up plan that examines the feasibility of a new business, product or service.
- Marketing plan - often a part of a standard business plan, but a necessary plan to address marketing issues within the business.
- Operations plan - an internal plan not intended for outside scrutiny. Often done annually, with dates, deadlines, responsibilities of teams and managers, and specific goals for the year.
- Strategic plan - focuses on setting priorities and options for the business. An internal plan. Sets the background for the implementation of the operations plan.
- Growth plan - Expansion plan - New product plan. Often focuses on a specific area of the business. Used to outline the steps for growth and expansion.
Uses for a Business Plan: Preparing a business plan is an organised, logical way to look at all of the important aspects of a business. But first decide what the use of the Business Plan will be for:
- Describing a new business.
- To define the objectives of the business and the programs to achieve them.
- For regular business review and any necessary course correction.
- To support a loan application.
- To outline and define the roles of business partners.
- To set a value on the business for sale or taxation purposes.
- To evaluate a new product line or service
- Objectives and strategies for growth and expansion.
Common excuse: No time?
This is a common excuse among business people, that they are so busy doing business that they don't have time to plan for the future. It's important to remember however, that planning now will save you time and stress in the future, and will reduce the risk of business failure.
Too many businesses only write a business plan when they are compelled to by circumstances or when required by the bank.
It's when you are busy that you need to take the time to plan, so that you potentially eliminate all possible problems that may arise. If you are looking to expand you need to plan. If you want to increase sales you need to plan.
Without a plan do you really know where you are going or how you are going to get there?
How we can help:
- We guide and assist you. No matter whether your Business plan is complex and detailed, or a simple feasibility study.
- We offer assistance ranging from advice to researching and writing of the entire plan.
- We sit down with you on a one on one basis to determine your requirements, and then work with you to implement the plan.
- We offer professional advice and work with your accountant or solicitor as required.
- We help you succeed and attain your goals.
Contact us now for a FREE confidential, no obligation appointment to discuss your business's future.
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