Dec 25, 2015
Why A Business Plan!Why A Business Plan!
Jerry Pradier, AInstIB
Of
Progressive Business Development Network, LLC
Presented by
Uses of a Business Plan
To acquire fundingTo attract partnersTo train and motivate employeesTo guide managementTo define and refine the business conceptTo win the MARKETING WAR
The most important role of any business owner is to market the business!
The most important tool for marketing is
THE BUSINESS PLAN!
Marketing
The process of planning and executing the [creation], pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. - AMA
Proper Planning Leads to Success
Have a vision (end state) Know your mission Establish your goals
(strategies) Create Objectives (tactics) Perform Market Research
(Know your enemy) Create Financial Plan
(logistics) Inchon
Faulty Planning Creates Failure
Failure to planNot using your planNot updating your
planIgnoring the
landscape
Waterloo
Half the unhappiness in the world is due to the failure ofplans which were never reasonable, and often impossible. - Edgar Watson Howe
Common Questions Who should plan?
What is the difference between planning for a big and small business?
How does planning help management? Who should write the plan? How can I know all the answers? How often should I plan? What if I never complete the plan?
Why does it fail?Correct the problem or issue
Planning Benefits
6. Develops proactive attitude & practice
7. Tracks performance8. Stimulates future development9. Attracts capital, partners,
employees10.Improves chances of success
Planning Benefits
1. Focuses on entire business
2. Asks important questions
3. Clarifies and communicates goals
4. Develops priorities
5. Improves management decisions
Create a Vision (ID the end state)How will your company look in the future?What will say about you?What will your company be if it is all that it can
be?“A computer on every desk, MS Windows on every
computer”-MS“Communities investing in success for ALL
students!”-DoDEA
How To Plan
How To Plan
Create a VisionDefine the Mission
A statement that expresses the purpose, business and values of the organization.
Must be applicable to all components (parts, members, divisions, stakeholders) of the organization.
If the values are not explicitly stated, they must be, at least, Implied in what the organization does.
Should be practical and short enough to be memorable
Short-term Goal:To become a millionaire within 12
monthsObjectives:
1. Work hard everyday2. Find a good bank3. Save as much money as I can
Goal Setting
Correct Goal SettingShort-term Goal:
To become a millionaire within 6 months
Objectives:
1. Identify 11 banks within 35 miles of GJ to case by 5 Aug 2005 (Pradier)
2. Select the five most vulnerable banks and create their floor plans and operational schedules by 30 Aug 2005 (Pradier)
3. Interview and hire three accomplices: A driver, a safe cracker, and a lookout by 15 September 2005 (Pradier)
4. Plan five robberies within a two-day period by 30 Nov (Driver)
5. Order plane ticket to Argentina by 5 December (Lookout)
6. Rob Banks and get out of the country, 24 & 25 Dec 2005 (All)
How To Plan
Create a Vision Define the MissionSet Goals & ObjectivesAnalyze the Market
Is there a market?Who is your competition?
•Where are they?•What is their market share?•What are their strengths & weaknesses•How can you capitalize•What are your SWOT?
How To Plan
Create a Vision Define the Mission Set Goals & Objectives Analyze the MarketAssess your Finances
Personal tax statementsIncome StatementsCash Flow StatementsBalance SheetPro-forma Income and Cash Flow
Plan
Act
View Results
Measure Results
ComparePlan to Actual
Explain Delta
Make Adjustments
When To Plan