How to make your business plan effective

Business planning feels sometimes like visiting the dentist – you know you must do it, but you keep putting it off

Historically business plans were prepared to obtain finance and subsequently filed away. Larger corporations prepared business plans internally to justify operational and project budgets. These business plans were seldom revisit and the accuracy and completeness were always questionable.

Regardless of the size of your business, it is imperative to be incredibly focused within your business. In depth focus can only be achieved through proper planning. This can be achieved through the use of structured business plan, sound business advice and ongoing evaluation against the plans.

The structure of the business plan should include:

•    Current market situation – Understand your current market environment, including its size and the share you can realistically achieve. The size of the market will depend on market trends, target customers and competition.

•    Current target customers - Evaluate the characteristics of the target groups of customers that could buy from your business.

•    Competitor analysis – The level of competition and the strength of the competition will provide an indication of how difficult it will be for you to attract customers.

•    Marketing strategy – Detail the objectives and targets for the volume and share of the market you hope to achieve and when you want to achieve it by.

•    Marketing plan – Explain in detail how you going to achieve your marketing targets and objectives.

• Sales Goal and objectives – Details your sale forecasts in terms of different product types by volume and value.

• Operational requirements – Draft an outline for your business plans for premises, equipment, staff, suppliers, compliance and estimated costs.

•    Current financial requirements and financial forecasts – Includes a breakdown of your financial requirements, the sources of finance available and any shortfall that will require funding.

•    Management processes – Consider key skills, responsibilities, and management processes needed.

•    Business risks – Details the risks your business is exposed to and how you plan to mitigate it.
Closing remarks

No-one knows the pitfalls of planning and running a business better than people who have done it. Rather than wait too late, contract business advice in if you do not have the necessary expertise. Experts can not only provide business advice for your business planning process but will become advocates for your business, cheering it on!