Creating a Business Plan

..The First Steps to Get You Started

Whilst I am always delighted to challenge, guide and assist, I do consciously resist the temptation to actually take control of the process.

There is a very important reason for my position on this....

If I write the Business Plan…then it becomes my plan, incorporating my goals and aspirations, which I own and have responsibility for. As its YOUR business, you need to own your business strategy.

The Business Plan is about thinking through your “vision” for the business. Whilst it should draw on the input and experience of others, the business owner must have ultimate responsibility for delivering what it sets out to do!

What's that I hear you cry?...

"That’s all well and good, but I don’t know how to complete a plan".

Or was it?...

“My business is too small to produce big reports that mean nothing!”

A business plan is like any tool – it’s what you do with it that matters. It needs to work for you and your business.

So whether it’s 1 key page or 100...which requires more in depth analysis to produce...it needs to be relevant and in a form that will be used.

As always, that’s part of the purpose of my site – to give you the tools to be able to undertake these sorts of tasks, with confidence and with great success.

How long should it be?

It’s also not about rigidly producing a blueprint which you unerringly stick to. It is about gathering and using information to make better informed decisions…TODAY!

By producing a business plan, you will also help those involved in the management of the business to be reassured about its financial viability. And you get a double benefit, because this data will also help investors and lenders gain confidence in what you are doing.

To be proactive and drive success, all businesses will need to define the Key Performance Indicators (KPI’s).These are factors that will directly influence how successful the business will be.

In your determination, you will need to decide which ones to monitor and ultimately how to judge success.

As with all things involved with gazing into the future, there can be a degree of inaccuracy. The plan should therefore take account of any areas of sensitivity.

For instance variable fuel costs would be something of concern to a haulage company as would be the value of currency to an export company.

And don't be scared to make assumptions, it's invetiable that you will have to. But you know what they are and can modify your plan as more knowledge and information is available to you over time. This is far better control than leaving the activities of your business to chance.

Assembling Information

1. What people profile (skills, numbers etc) have you currently and what do you need in the years ahead?

2. What markets are you trying to serve?
   To answer this, you will need you to identify your customers, determine what the competition is doing, try and develop an understanding of what characterises your customers and how ultimately will help you address their needs.

3. What financial records do you have available?
   Understanding your costs and sales are two fundamental KPI’s!

4. Are you technology driven, or is there an opportunity to use it to gain an advantage?

Initial Decisions

1. What is my niche? Reflect on the features of your product or service. Ask yourself what advantages it can bring to your clients and how easy are they to provide.

   This will begin to clarify your Unique Selling Point (USP).

   For instance a friend of mine is involved in providing bakery products. He knows that his ingredients help improve the longevity of the baked product, help retain its moisture (and therefore the customer experience will be better) and will reduce the Bakery material costs by 10% against more traditional supplies.

   As a highly successful National Sales Manager, he knows and uses his USP’s!

2. I want to grow but my sales force isn’t big enough.

3. With increased orders, my Information Communications and Technology will need to be improved.

4. I may have to borrow money to buy a new production machine

5. Can I change my prices?
   This normally sends businesses into panic. Largely because they become hooked on price rather that the value, quality and service that they are providing to clients.

   In making your judgement, you should also be conscious of what prices your competitors are selling at. Most importantly, to adjust your prices, you do need to know what you are spending.

   “Annual income twenty pounds, annual expenditure nineteen and six, result happiness ...Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery”
   

   - Charles Dickens, (author of David Copperfield).

6. Choice of business location
   My advice is to keep your overhead costs as low as you can. So as a preference, work from home. If you need bigger premises, think about what size you really need, where it is best located and the travel costs (out of town will be cheaper, be may make it harder to recruit staff).

OK. so I have hopefully got you thinking about your plan. So what's next?...

Well why not click on each link below to find out more of my successful business planning secrets!. I am sure you will find it a superb information resource!

You can also directly access our expert coaching, advice and support to ensure you achieve your goals and the success you want. DON'T DELAY, follow the link to Contact Us! or call on 0845 408 5978

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