A Business plan is a tool which forces you into thinking and planning strategically. In doing so, it will force you to think through some tough issues such as:
Are you sure that what you are doing now, is taking you closer to where you want to be in the future?
Do you know what you want your business to look like in five or ten years time? If you don't think that is important, have you considered:
- Do you want to sell your business in the future or are you just trying to generate a source of income? The way you answer this will greatly impact the decisions you make and the way you run your business now going towards that goal.
- Are you aware of the things that you need to do now so that your company is in a saleable state in the future?
- Or alternatively, do you know whether your company will be able to generate sufficient income for your needs in five years time? By the time you realise the company is not generating sufficient income for you, its already too late. You need to plan ahead.
what is a business plan and why do i need one?
A Business Plan is a living document which sets out the objectives of the organisation and the plan on how to achieve those objectives.
Many people believe that a business plan is synonymous with a financial plan. Yes, a significant number of the activities that will be undertaken by a business will have or should have financial implications, but the financial plan is merely one component of a business plan. In a sense, the financial plan pulls all the different components of the business plan together in translating each component into numbers.
A formal business plan is just as important for an established business, irrespective of its size, as it is for new ventures and non profit organisations. A business plan:
- helps management or an entrepreneur to clarify, focus and research their business' development and prospects;
- provides a logical framework within which a business can develop and pursue business strategies;
- serves as a basis for sharing the business' objectives and strategies with outside parties
- provides the yard stick against which you can measure the business' performance
A business plan should be a realistic view of the expectations and long-term objectives for an established business or new venture. It provides the framework within which it must operate and, ultimately, succeed or fail. For management or entrepreneurs seeking external support, the plan is the most important sales document that they are ever likely to produce as it is the key to raising finance. Preparation of a comprehensive plan will not guarantee success in raising funds, but the lack of a sound plan will, almost certainly, ensure failure.
Preparing a good business plan is a painful process. It forces managers or entrepreneurs to understand more clearly what they want to achieve, and how and when they can do it. Even if no external support is needed, a business plan can play a vital role in helping to avoid mistakes or recognise hidden opportunities. For many entrepreneurs and planners, the process of planning (thinking, discussing, researching and analysing) is just as, or even more, useful than the final plan itself.
can a third party create my business plan?
In a word....No.
As the owner or manager of a business, the business plan reflects your goals and ambitions for the company. It sets out your vision and how you expect to reach it. An independent party cannot create this vision and plan for you.
All we can do is to facilitate the vocalisation and documentation of your plan. It is essential therefore that a significant amount of interaction takes place between your consultant and yourself in putting the plan together. Experience has proven that a plan built without the input and buy in of the management team (and owners) will be irrelevant to the business.
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how do i go about developing a business plan?
1. Clearly define the target audience. Why are you building the plan? Most plans are developed as a result of an external influence such as a financier requiring a formal plan before investing in the business. Determine to whom you will present the plan as this will guide you in the type and detail of information to include in your plan. Ideally, your business plan should be developed for you as the manager or owner and a subset of this "master plan" created for third parties.
2. Determine your audience's requirements in relation to the contents and levels of detail
3. Map out the plan's structure - prepare a contents page. A Business Plan template may be useful in this regard. The download area contains such a template which you are free to use.
4. Identify all the main issues to be addressed.
5. Determine what research needs to be done.
6. Identify critical success factors
7. Start with your vision, mission and objectives. Unless you are absolutely clear on what you are trying to achieve, your plan will be confused and unfocussed. It is useful at this stage to involve an outside party who can challenge your thinking.
how we can help you with your business plan
We will work with you to ensure that the right issues are addressed in your plan. Our business plan process is facilitation driven, requiring significant input from you.
Essentially, we will ask the right questions, guide your thinking, and then take your ideas and plans and formalise these into a business plan.
We will also take the opportunity to provide you with strategic advice on achieving your vision.
The end result : your plan and your ideas presented according to your business' requirements.
