BUSINESS PLANS Gavin D. J. Harper www.gavindjharper.co.uk Presentation at: Institut Supérieur de Commerce Internatio Dunkerque, France March 2009
Jan 13, 2015
BUSINESS PLANS
Gavin D. J. Harperwww.gavindjharper.co.uk
Presentation at:
Institut Supérieur de Commerce InternationalDunkerque, France
March 2009
WHY DO YOU NEED ONE? Business plans are used for a number of
purposes – Fund raising from:
Banks Venture Capital Private Finance
Internal clarification of business goals
Business plans are not a static document that you write at the beginning of starting a business – they are DYNAMIC.Change them as the business environment and
your knowledge evolves.
The Seven P’s
P!$£ Poor PlanningProduces
P!&$ Poor Performance
ENTREPRENEURSHIP In developing your
business plan, you will be developing ‘entrepreneurial skills’.
Entrepreneurs come from a diverse range of backgrounds and integrate and synthesise a wide range of skills.
As a prospective entrepreneur, you will have to get used to wearing “lots of hats”.
IDEAS GENERATION IS THE EASY BIT
REGRET NOTHING If your business “doesn’t work on
paper” and the figures don’t add up – it has less chance of working in real life.
It’s better to waste a week writing a business plan than wasting a year (and lots of cash) trying to start up a venture that is destined to fail.
No…. I regret nothing… I took the time to do a business plan.
BENEFITS OF A BUSINESS PLAN A business plan defines what your
businesses objectives are.“Mission Statement”“Values / Ethos Clarification”
Are your objectives realistic?A business plan makes them “transparent”
How are you going to get there?Roadmap for your business.
GREAT IDEAS NEEDFIRM FOUNDATIONS
Any great idea needs firm foundations.By spending the time writing a business plan,you are building a firm foundation on whichto develop your business.
“A successful man is one who can lay a firm foundation with the bricks others have thrown at him.”
David Brinkley
“Confidence is the foundation for all business relations. The degree of confidence a man has in others, and the degree of confidence others have in him, determines a man's standing in the commercial and industrial world.”
William J. H. Boetcker
FOCUSSING YOUR EMPLOYEES Business plans help get “Everyone on
the same page” – they provide a central vision to which everyone in the business subscribes.
The more people you have to co-ordinate, the more important this becomes.
“Get EveryoneSinging in Tune”
STRUCTURE OF BUSINESS PLANS No two businesses are the same. No two business plans are the same.
It is ok for business plans to vary considerably depending on the type and style of business.
Generic business plans are available for differetn “types” of business, which you can customise for your own ends.
We are now going to look at a very ‘generic’ type of business plan, which provides the basic elements of structure for your plan.
1. EXECUTIVE SUMMARY Outlines what you are looking to
achieve. How are you going to do it with the
resources available. Keep it short, keep it concise and make
EVERY WORD COUNT.
It is the written equivalent to your “Elevator Pitch”.
If you can’t explain what you are doing in a minute, then you will lose your readers attention.
2. CUSTOMERS Who do you anticipate selling your
product or service to? What ‘sort of people’ are they? Where do they live? How many of them are there? What range of ages are your customers? What is their spending power?
3. COMPETITION Know everything about your enemy. What are their:
PricesStrengthsWeaknesses
How does your business differ from theirs?
What are you going to do better than them?
How will you steal their business?
4. SUPPLIERS Who are your suppliers and how will you
rely on them?
Any special requirements for delivery that are specific to your business? E.g./“Cold Chain” for Food-Service“Just In Time” for Automotive Parts
5. MARKETING What is your sales channel? How are you going to reach your
customers? Do you have the funds to market your
product to your consumers?
Innovative marketing models?Pyramid Sellinge-BusinessMail Order
6. HUMAN RESOURCES How many people will you need to run your
business? Who are your “key staff”? What specialist skills are required to produce
and deliver your product or service?Are there enough of these skilled people in your
area – if not where will you recruit them from? Is there a ‘premium’ to be paid for their skills?What is the labour market like in your area?
Do you need to provide training? Can you “outsource” where you can’t find
skills locally?
7. OPERATIONS MANAGEMENT What are the processes you will be
using in your business? Do these processes require specialist
equipment?Capital Investment in
Tooling Infrastructure
8. FINANCIAL Forecasts for the next three – five years.
Cash FlowBalance SheetProfit and Loss Account
How will the proceeds of your funds be spent?Reinvestment in the business?Dividends to shareholders?Remuneration for founders?
9. RISK ANALYSIS What sort of risks is your business likely
to encounter?Turbulent marketplace?Operational Risks?Staffing Risks?Financing Risks?
THINK GREEN:Rising energy prices?Resource scarcity?
10. ETHICS / C.S.R. What is your company’s ethical
position?Sustainability
Social Economic Environmental
How will your company be a ‘responsible’ business citizen?Community engagementBeing “A Good Neighbour”
PRESENTATION IS EVERYTHING Your business plan is an ambassador for
your company. If your business was a country, you wouldn’t
dress your ambassador in a shabby, ill-fitting suit.
Ensure that the plan is laid-out professionally.Print on good quality paper.Give thought to the cover and binding of your
plan.
With desktop-publishing and high quality printing cheaper than ever, there is no excuse for poor-quality presentation.
HOW TO WRITE A BUSINESS PLAN Business plan writing software (provides
a template for you to fill in)Simple but…Generic & Inflexible
Download a “template” for your type of business from the net
Take a course in business planning (this one?)
Hire a consultantSounds easy…But YOU know your business
better
BUSINESS PLANS: JAPAN We can learn a lot from the East about
developing sustainable businesses – some businesses in Japan, have a 500 year business plan. Including big names you might be familiar with.ToyotaHondaSony
NO BUSINESS PLAN? If you haven’t got a coherent and well
presented business plan, what else haven’t you done?
Alarm bells for investors…What does it say about this person’s
business? Late tax returns? Poor organisation? Bad time management?
UNABLE TO RUN A BUSINESS!
To fail to plan……is to plan to fail!