Often with a prospective client, just asking the simple question ?tell me about your business plan? can lead to all the information I need to coach this business owner to next year. I learn about the vision for the business, the issues, the focus, the employees or lack of and I learn about the customer who buys their product or service.
Entrepreneurs are typically great talkers so I wait until after their first breath and say something like ?is all this in writing? or ?what do your employees think about the plan?? Really, it is not meant to be an earth shattering provocative question. Somehow it usually is.
On a side note, I love entrepreneurs. It could be that I love them because they are often a lot like me. They have great ideas, a positive attitude and have way too much to do! It could be I enjoy them because their business issues are a lot like my own. It could just be that I tend to favor the underdog and want to see the mom and pop organization take market share and win against all odds. Okay, it is probably all three.
So when I ask about their business plan, it's because I have learned that most of my clients don't have one and that when they take the time to think through their focus and strategy, preferably with their team, everything comes together.
When the time is right, I ask my clients ?What would it be like if you could reference a plan when making choices?? Can you imagine being able to share the whole plan with your employees, affiliates and your coach?? Sometimes I ask, ?Can you imagine the freedom you will have when it is out of your head and on paper?? or ?What if everyone understood the business strategy, as well as the business strengths and weaknesses?? These questions along with my simple business plan format usually do the trick and they go to work on a plan.
They often report many insights into future mistakes that would have happened had they not written the plan and that having a simple plan in writing has allowed the whole team to collaborate, align and support the business vision.
For a simple business plan format go to www.profitconsultingco.com/business.htm or join us for business planning tele class in October.
Alicia Fruin ?Owner Profit Consulting Co. Business coach and trainer
Business Plan For Restaurant
Marketing Policies and Strategies: A sound business plan must always describe the marketing policies and strategies of the company. This includes the target consumer base, the advertising channels, various media communication strategies and employee welfare schemes.
Financial Status: A Business Plan ought to list in detail the expected profits including revenues and turnovers. Depending on the type of business, the plan has to chart out the rates of expected operating profit, gross and net profit margin rates. The plan should clearly outline the investment on the business opportunity and the returns received on it. It has to map out the employee salary rates and the expected profit and loss margin. The plan has to state the risks and uncertainties of the market. It has to observe contingency actions in case of insolvency, damage, obsolete goods and services.
A business plan rests on the twin bedrocks of Market Research and Business Opportunity. When an entrepreneur decides to form a company, the first step undertaken is that of conducting intensive market research.
Market Research: Market research shows the entrepreneur whether his business intent or draft plan is commercially viable or not. Market research details, analyses the financial rates and trends in a particular sector. Market research is not static but is always in flux. It acts as a guiding post informing the entrepreneur whether the investment on a business opportunity is feasible or not.
Business Opportunity: A business opportunity charts out the various assets involved in a business. It includes the property site, machinery, goodwill and the company's real estate. An entrepreneur makes an investment on a business opportunity. In a nutshell, a business plan has to show the investment made on the business opportunity in real value.
The UK Business Link and Economic Development Weekly argues that a business plan must include a marketing strategy, sales strategy, employee turnover rate, demand and supply growth rate. However, the business plan should state real projections. It should not give overestimations. The entrepreneur should keep his/ her target audience in mind while framing a business plan. Business Link states that there can be two types of business plans:
a)A business plan which exists at the departmental level of a company: The plan lists only short term goals and inter-departmental policies. The business plan is drafted to achieve a certain purpose in a specified period of time.
b)A long term business plan: It maps out the company intent, objectives and financial regulations. This type of business plan is drafted at the inception of the company and is used to get financial grants and loans. The plan acts a guiding light to employees, investors and management. The business plan is a lengthy document detailing the projected returns and the amount of investment. The business plan is read and analysed by:
Bank manager
Alternative finance providers
Advisory business firms
Investors
Management and employees
The business plan is used:
For business assessment: A business plan outlines every aspect of the business covering the basic company purpose.
To make a SWOT analysis: Whether a new company or an existing one, a business plan provides a detailed list of the strengths, weaknesses, opportunities and threats faced by the organisation. The SWOT analysis helps to show shareholders the standing of the company in the market.
For financial security: A business plan is used by an existing company to apply for grants and loans. The plan is used as a yardstick by financial institutions to decide whether to invest in the company or not.
A business plan must not be written in a hurry. It ought to be written after considering every aspect of the company. An entrepreneur often runs into a few common mistakes when composing a business plan:
Unrealistic projections and figures: Investors concern themselves with numbers. Thus, it is essential for every entrepreneur to state realistic projections based on current market trends and demand rates. Banks and financial institutions demand precise forecasting in case of marketing and financial strategies.
Commercial viability: A business plan should not be overly ambitious or downright impossible. It has to map the company intent which is commercially viable. Investors look for a company's market base in a business plan. The business plan has to clearly define company goals, path of achievement, employee roles and consumer base.
In short, a good business plan should answer these questions:
What is the proposed business issue?
What is the proposed business solution?
What will be the material benefits of the business solution?
Who will be the recipients of these benefits?
An answer to these questions indicates business transparency. Thus, a good business plan ought to be commercially viable and transparent.
Both Alicia Marie Fruin & James Walsh are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Alicia Marie Fruin has sinced written about articles on various topics from Business Plan. Alicia Marie applies almost two decades of business ownership experience, as well as a wealth of sales and marketing knowledge, to help her clients tackle the business challenges they face.. Alicia Marie Fruin's top article generates over 5400 views. Bookmark Alicia Marie Fruin to your Favourites.
James Walsh has sinced written about articles on various topics from Small Business, Binding Machines and Divorce and Infidelity. James Walsh is a freelance writer and copy editor. If you are interested in starting up your own business and would like some help with your Business Plan see. James Walsh's top article generates over 368000 views. Bookmark James Walsh to your Favourites.
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