Credit Squeeze
The financial squeeze is on in 2008 and, just as many homeowners begin to feel the pinch, business feels it too. New business, in particular, may find credit hard to come by as we approach financial meltdown. A rigorous and well-constructed Business Plan can smooth the path in obtaining the financial injection to fuel your ambitions. This is an uncomplicated guide in how to go about identifying the content required, and then composing the words to appropriately describe your business. The assembled plan must be robust enough to withstand scrutiny and acquire the investment needed to build your dream. Done properly it can then act as the framework for consistent success.
What is a Business Plan?
In very simple terms, a Business Plan is a statement of where a business is now, where it wants to be and, how it intends to get from here to there.
Why do you need a Business Plan?
In a financial sense, a Business Plan is needed in order to convince your investors that the business is sound, the management is rational and the ambition is prudent. Operationally, a Business Plan will assist in ensuring that dreams can materialise, rather than remaining mere hopes.
Who needs a business plan?
In my opinion, every business or service requires a Business plan. From a large Multi-national company down to a sole-trader and across all sectors of industry, including service sectors such as local government, a properly constructed Business Plan can often be the difference between success and failure.
When is a Business Plan necessary?
Certainly, if you are looking to secure investment, right at the beginning of any venture. However, it is never too late to plan properly.
Where should a Business Plan be retained?
A properly constructed Business Plan will become a dynamic and constantly referred-to document. If it sits on a shelf gathering dust, it has not been properly constructed.
How do you create a Business Plan?
Ok, so having understood what it is and what its purpose is, the tricky bit is drafting it. However, you can make it as simple or as complicated as you like. What follows is a simple methodology which you can use, especially if this is your first attempt.
Step One
Begin with the end in mind. You need to define your business and identify where, or what, you want your business to be? This is best described in a simple statement; it used to be referred to as a "Mission Statement" but, that phrase is a little tired now. Simply call it your "Purpose" or, "Main Aim". The importance of this is that it can be shared with all staff, who then can all identify with the ultimate goal. An even better way of achieving staff "buy-in" is to involve them in the process. This may be determined by the size of your organisation but, even if it is very big, run a competition for ideas and suggestions. It does not necessarily have to provide what is eventually used but, it will generate ideas and you will have sparked some interest.
Example : Atom plc employs a workforce who are professionally and operationally trained, to forge vibrant working partnerships with our customers and, to deliver an efficient and effective service - the best!
Optional additions to Step One
If you wished to expand on this aspect of the Business Plan you could include and develop any of the following items : Vision; Core Values; Differentiators or Unique Selling Points.
Step Two
Where are you now? In other words, record what is the current state and performance level of your business, or service? Describe your business and provide some background. However, in order to develop some meaningful data upon which you can draw to create positive momentum, I believe that a SWOT (Strengths, Weaknesses, Opportunities & Threats) Analysis is very productive. This has to be an honest appraisal if you want genuine success. Apart from, perhaps, focussing the mind the purpose of this exercise will not become fully apparent until you move on to Step Three. In the meantime, do not hold back on your SWOT Analysis, it can be transformational!
Example : Strength - Experienced, dedicated, committed and professional staff; Weakness - Management & staff have little experience of commercial environment; Threat - Loss of key staff; Opportunity - Revised Structure with multi-skilling & flexibility.
Optional additions to Step Two
If you wished to expand on this aspect of the Business Plan you could include and develop any of the following items : Management/Organisation structure, Historical Profile, Core Business, Situation Analysis, Organisational Culture.
Step Three
Identify your Key Objectives. Your Key Objectives should be designed to achieve your Main Aim or Purpose. If any of them do not help in achieving that then, I would suggest, they do not qualify as a Key Objective. There only needs to be about 10 to 12 Key Objectives. Any more and you are starting to set yourself up to fail. In order to assist you in identifying what your objectives should be, you ought to be able to use the SWOT Analysis - if you have done it properly! Make note of your strengths, as you do not want to compromise them, rather you want to build upon them. However, if you look carefully at the items identified as Weaknesses and Threats, the chances are that your Key Objectives will either be very apparent or, will become much clearer. In other words, each of the identified Weaknesses and Threats should be addressed by a Key Objective. Equally, it would be very useful if, at least some, of the Opportunities were able to be accommodated within your Key Objectives.
