Getting the right business plan is a question of choice, multiple choice…There are over 49,000,000 million hits for just “business plans” just on Google alone.
So let’s rather have a checklist of what’s needed first off to start drawing up a good plan; the basics are;
- A business model/ business concept – well researched and designed… many people start with only the business plan, and then fail. A plan is a road map of how to get there. The model is what the specifications are, the design, the ingredients that translates into attributes and then the final product, the concept.
- It builds a vision of what is expected;
- Models assist with plans; they are used by investment-seeking entrepreneurs to convey their vision to potential investors. They may also be used to attract key employees, as well as prospecting for new business partners, suppliers or simply to understand how to manage new start-ups in their companies better.
- The plan must also be rational, project like, in other words; Time phased, sequential, depicting pre, during and after launch. Projections, of deliverables, and progress…
- Business plans can be divided roughly into four separate types. There are either very short plans, or mini-plans. Then we also see working plans – projects -, and then also presentation plans and even electronic plans… more here
- Ideas require effort, how much effort; time and money will be spent and where is the focus; KPA – your key performance areas phase one, two, three… enter Accounting strategy;
- Financial sense and backup; Accounting; KPA1 – phase one; deals with
- Sales; advertising and marketing.
- Budgeting; procurement and remuneration
- Credit control; – debtors and creditors
- Balance sheets; – capital, assets and accounts
- Cash management; actual cost and expenses
- Keeping financial records – administration and book keeping; tax, vat, pay etc
- Cash flow is most important during start-up, (forecasting cash flows, turnaround time, sales conversion,) but you also need lots of details when it comes to assigning tasks to people, setting dates, and specifying what’s supposed to happen and who’s supposed to make it happen. These details really matter – and become your second trust – operational success – becomes the second KPA – key performance areas, it needs to be streamlined and fast. A business plan is wasted without them.(KPA)
- Your Business structure; structure follows strategy; this requires systems, policy and procedure – training and supervision. From your business model, you should have come up with a structure to support this venture with people, resources, and an organogram (often called an organization chart) that acts as framework for how work distribution should take place, and flow…( By far, the most important ingredient for your success will be yourself. Focus on how your prior experiences will be applicable to your new business. Prepare a résumé of yourself and one for each person who will be involved with you in starting the business, and that reflects their field of responsibility, and their capacity and experience to do it. )
- No business functions in a vacuum; we need a competitive economic analysis, and threat assessment done. So we will have to deal with internal as well as external forces – competition and labour issues – both good and bad. What will be your strengths, weaknesses, opportunities and threats in this regard? Especially if you need investment, or partners. (you have to show that you understand the market, you could be at the eve of your launch, with looming labour strikes in your sector, not a good time to start then)
Structuring such a plan, a business plan consists of seven key components: and the aforementioned items should be slotted into these bullets.
- Executive summary
- Business description
- Market strategies
- Competitive analysis
- Design and development plan
- Operations and management plan
- Financial factors
GET the book right now; The Radical Revolutionary Strategic Management Matrix for Predators
By Reinier Geel