The Secret To Success In Business Planningplan Your Work And Work Your Plan
Running your own business is a highly rewarding but often a risky endeavor. As with anything else increasing your chances of success begins with preparation. And when it comes to transforming your dream into reality the key to successfully jump starting your business is simple: plan the work and work the plan. Whether youre just getting a new business off the ground expanding the business you have or purchasing a business devote plenty of time to planning:
Begin with a discovery process to confirm the viability of your venture.
Do your homework.
Uncover fundamental objectives insights opportunities and risks.
Research the market.
Examine your offering market conditions trends and the competition.
Excavate potential problems.
Outline your goals and objectives.
Compile the business intelligence you need to create a solid foundation of actionable
information to chart your present and future direction.
The next logical step is to develop a plana strategic business plan that functions as a living document to define your objectives guide your business and take you from Point Awhere you are today to Point Z where youd like to be. But remembera strategic plan is about more than securing fundingits essential to jump starting your business. And once youve written your business plan follow it up with an action plan that spells out your short and longterm objectives and how youll achieve them.
Just remember thisthere is no underestimating the power of planning. As the former CEO of Octel and Lucent Technologies notes People usually plan their vacations more carefully than they plan their careers. Im a compulsive planner but there were times when I had no idea what I was doing.
Even when you have no idea what youre doing developing and implementing a plan improves your chances of achieving your goals. This article outlines the fundamental components of crafting a strategic plan to take your business to the next level.
What is a strategic plan?
Strategic planning is the process by which the key stakeholders you and your partners in an organization
envision its future and develop the procedures and operations that will enable you to achieve that vision.
A strategic business plan serves two purposes. First its an internal document that defines your goals strategies and tactics. Second its a tool for raising capital. However you need a plan whether youre looking for capital or not. Without a plan you wont know where youre going and you have no way to benchmark or track your progress.
With a strategic plan you have a roadmap that enables you to look ahead allocate resources focus on key points and prepare for problems and opportunities.
A wellarticulated strategic business plan clearly outlines your vision goals priorities strategies products services and financing needs. It also provides relevant information about your company your management team and short and longterm objectives. Highlighting both the positive and negative aspects of your business opportunity your strategic plan should look ahead from three to five years.
How do I write a business plan?
As they say theres more than one way to skin a cat. Likewise theres more than one way to write a business plan. Formats outlines and lengths vary. But they all tend to share a generally accepted format and certain standard components.
Your plan must be clearly written logically organized and convincingly worded. It should target a specific audience. It should outline the details of financing competition strengths weaknesses and forecasted financial performance. As a rule of thumb when writing your plan include the following components:
Cover letterwrite a cover letter to introduce you and your business plan to your audience.
Title pageinclude a title page that details the content of your plan your name address phone number names and positions of the executive team date and contact information.
Table of contentsadd a table of contents to make it easy for readers to find information.
Statement of purposeinclude a clearly stated explanation of your companys goals and how youll achieve them. For example your statement of purpose may be to provide quality reliable landscaping services for less in the Phoenix metropolitan area. Describe your value proposition whether its price convenience service or another attribute how much capital youll need and how youll repay it.
Executive summarythis is the most important part of your business plan. Include a brief summary that highlights the major points of your plan. Provide background on your business the market your value proposition key team members projected ROI Return on Investment internal rate of return and current and potential risks.
Market informationdescribe your target markets. Substantiate statements with facts and supporting detail. Include market research on initial and future markets key market segments past growth rates anticipated trends and changes.
Companydescribe your company its type history legal structure industry market principals revenue size and growth rate.
Product/service descriptiondescribe your offering relevant business benefits stage of development how your product/services will satisfy a real business need and enable you to compete.
Management teaminclude detailed information on the core members of your teamthe people who will run the company as well as senior partners attorneys financial and business advisors. Include names titles experience skills responsibilities and compensation.
Potential risk factorsinclude an assessment of the risks facing the company. Describe the worstcase scenario and anything that could go wrong today and in the future. Offer strategies for overcoming risk.
Execution/action plandescribe how youll translate your business plan into actionable results down to the finest detail. Describe how you will obtain licenses to do business open an establishment get products on the shelf hire employees and forge partnerships. Describe production schedules delivery processes and customer service policies in order to set operational benchmarks to measure progress.
Financial informationInclude a section that projects future revenues and profits three to five years out. Base this information on bestcase worstcase and most likelycase scenarios. Summarize financial data like cash flow income statements balance sheets banking relationships terms and rates of loans financing plans and working capital requirements.
Legal preparationincludes corporate bylaws patents and trademarks licenses to do business employment agreements and customer contracts. Anticipate the legal and documentary setup your business will require. Writing a business plan can seem like a daunting task. However there are many resources available to help you prepare a sound plan. You can find books in your local bookstore software programs and templates online and in local computer/software stores or you can work with a consulting firm a nearby Small Business Development Center or a local business school.
No time like the present to start to plan your work and work your plan. Happy planning
About the writer:nbsp;nbsp;An author speaker and consultant Terry H. Hill is the founder and managing partner of Legacy Associates Inc. a business consulting and advisory services firm based in Sarasota Florida. A veteran chief executive Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. Terry is the author of the business deskreference book How to Jump Start Your Business. He hosts the Business Insights from Legacy Blog at http://blog.legacyai.com and writes a bimonthly eNewsletter “Business Insights from Legacy eZine.”
By signing up for Business Insights from Legacy eZine at http://www.legacyai.com/Business_Insights_eZine.html you can keep abreast of the latest tips tactics and best business practices. You will also receive the free eBook Jump Start Your Knowledge of Business.
Contact Terry by email at http://www.legacyai.com or telephone him at 9415561299.
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