Business Plans

What are business plans if it is not your best attempt at predicting what will happen with your business idea or concept and how it may turn out over a certain period?

As with any type of plan, the more specific the details the better the odds of the implementation stage being successful. I am often surprised at the vague plans with which people come up. After a recent talk I gave on business planning, the dean of a university business school who was attending admitted that even at her level of professional achievement, the business plans for different departments within the business school lacked the type of detail I was referring to. “I now realise that without being aware of it my team may see the business planning process as a bit of a ‘going through the motions’ process and hence the plans we come up with rarely contributes to the achievement of our goals.” This was a real eye opener for her and I am now working with them on their next series of plans to add detail and ‘realness’ to what they are planning.

How many of us have found ourselves carrying out tasks or processes for which we are not prepared. When this happens we miss the opportunity to perform at our best. Business planning helps us to be prepared for what is coming. Yes, I can hear you say that we don’t always no what is coming and cant prepare for everything. That is certainly true and imagine how tedious life would be if we could really see into the future, but being prepared for various scenarios, especially as far as resource availability and backup is concerned will go a long way towards you and your team turning the unexpected into a unexpected success.

This week, I’ve been reading two books that try to predict where we are going in terms of technology, our economy, health and culture. They are remarkable, exciting, and at times frightening, but they generally base their arguments on two fundamental assumptions. (I’ll be reviewing both books in my Blog in weeks to come, so look out for that. )

First, they assume that the future will tend to look like the present, only more so. They assume that trends and patterns continue over time, and so, for instance, they predict a continued focus on the environment. If your life continues the way it is, where will that take you? This is a vital question!

The second assumption is that people can and do change their minds. For our culture the future is to some degree unpredictable because people change direction. They learn from their mistakes and take corrective action. Nations and cultures, like individuals, respond to new information, make decisions and re-invent themselves.

You have that power! You have the ability to choose the life you want, if you are willing to do so.

The point is, you are in charge of your business and effective planning whether a business plan, growth plans or weekly performance or sales plan, puts your hands on the steering wheel of your business and ensures that you drive it to the destination that you choose!

When you look back on your life five years from now you will see that your business and your life is a combination of the trends and patterns can you today plus of course the changes you chose to make. Hopefully, your business or business plans will take into consideration what you read today. Hopefully, you’ll choose to continue many of the relationships, patterns and habits you’ve developed to this point.

I trust that you’ll choose some changes. I trust you’ll choose to up-grade some things, eliminate other things, and perhaps add a few new habits and beliefs. There may be skills you’ll want to learn, or habits you’ll decide to cancel.

The woman who talked to me after my speech was proud of the achievements. But she was embarrassed that luck, habit and momentum had played too large a role in her department. If you’ve allowed habit and momentum to run your life, I certainly hope you have that same kind of good luck, but don’t count on it! Take charge! Choose the life you truly want, develop a strategy to achieve it, and take action. This is your life. Make it a good one!

FNB Enablis Business Launchpad 2009

The FNB and Enablis recently launched the 2009 version of it's business launchpad competition for new and growing businesses. The business plan competition which has been an annual event in South Africa since 2005 is a extremely welcome addition to the South African entrepreneurial landscape, supporting new and growing businesses and assisting those who want to bring their business ideas into reality.

"The Business LaunchPad competition aims to create an opportunity for anyone with a business idea or existing business, and who finds it difficult to secure conventional commercial funding, to be considered for access to start-up or expansion funding.

The competition process evaluates all the entries and scores them on the basis of their business viability and suitability for the funding criteria of the competition’s funding partners.

The process of entering the competition often assists the entrepreneur to clarify, refine and focus their business idea, which in itself is a valuable step." http://www.launchpad2009.biz/

The competition asks businesses or people with business ideas to submit a business plan, outlining its ideas and how these can be brought to market. With a range of attractive prizes on offer, this competition is not to be missed.

Best of luck with your entries,
Ben

Mini Business Plan

As long-time readers know, I am a believer in the value of
planning. I am convinced that any plan is better than no
plan, and that most small businesses do not spend enough
time deciding where they want to go, or grow.

Sometimes, I am told people "don't know how" to write a
business plan! And, from a banker's perspective, that
might be true. But these same people know how to plan a
vacation, a celebration or a party. You can do this!

Begin planning for next year by reviewing this year. Start
with what you earned, and how many customers you served.
Examine your data for patterns and ask questions. The data
may be in your accounting program, in your files, or in
your appointment book, but you do have what you need to
begin planning for next year. Use that data!

Next, dream a little. How much money would you like to
make next year? How much do you want to work? Considering
your clients this year, do you want more of the same, or do
you want to make some changes? Simply decide what you want
for next year.

Then, the part that terrifies most of us. Decide how you
will make it happen. Do you need to raise your fees, do
more marketing, or learn new skills? Do you need to hire
an assistant, or up-grade equipment? Do you need a coach
to mentor you?

Planning is a three-part exercise. Start with what you
have, choose some targets for next year, and devise a plan
for getting there. Yes, you'll make mistakes, and of
course nothing will go exactly as you planned. That's
called life. It is NOT an excuse to avoid planning.

A plan will focus your time and energy. Any plan, even
notes on a scrap of paper, will give you a sense of
direction. Before the year gets away from you, write a
plan! A year from now, you'll be glad you did.

Compiling a Bullet Proof Business Plan

Compiling a Bullet Proof Business Plan. So many business plan consultants today will promise you the earth and deliver disappointment. Just this week we were approached by a distraught entrepreneur who have experienced the frustration of working with a in experienced business school graduate trying his hand at business planning, only to deliver disappointment. So what does it take to compile a hard hitting, Bullet Proof Business Plan that will address all the questions your bank or potential investor may have?

The importance of a well written business plan can be summarised very quickly by looking at how much finance it is that you require. Money talks as they say and nothing talks better to the focus and dedication you need when composing your plan.

Be clear and concise!

The purpose of your business plan should be very clear to you. Are you writing your plan to win funding form a bank r VC? Are you looking to impress a future partner? Are you writing the plan to ensure that you have thought through all tea various areas of you business before you start? The answer to these questions are important as he purpose of the plan will decide the structure, tome and content of your business plan.

Is your business plan is a sales document?

If you are trying to convince annoyer party to take action as a result of your plan then yes, of course it’s a sales document. The key thing here is that although it is a sales document it needs to be based in truth, with well researched forecasts and realistic predictions of sales, your target market and the competition.

A commonly used tool used by people writing sales letters, is the AIDA principle. Grab the reader's Attention, create Interest, provoke Desire in the reader, the desire to act. And lastly move the reader to Action (i.e. to write the cheque!)

A business plan can be compared to a unique finger print of the business. For the informed investor or banker it is very easy to see whether a template or copy of another business plan has been used. If you want to stand out to investors, if you want t be the business who winds the cash or investment then reflect this uniqueness in your plan.

Always focus on your audience. Who will be your audience?

Once again depending on the purpose of the business plan the audience will be different and hence the tone, content and structure of the plan needs to be different.

The Bank Manager

Bank manager have one interest, they want you to pay the money back in time with the interest that you agreed on. So a business plan written for a bank manager needs to reflect stability and the ability to make regular re-payments.

Investors

Whether a Venture Capital Firm, individual or business angel investors will always be thinking WIFM. WHAT’S IN IT FOR ME? Remember these words and write your plan in such a way that the answer to this question will be positively clear to the investor. Investors are interested in high growth, high returns businesses. If you fall into this category remember that the investor has probably a target of how much money he needs to invest in companies per month. I was fascinated when speaking to a group of investors at a recent conference, when they seem to agree that there are simply just not enough businesses needing high amounts of investment. The problem is often that businesses aim to low, both with their business ideas, growth strategies and required investment.

The Government Agency and Grant providers

Your Local Enterprise agency, Business Link or other department of trade and industry falls into this category. You could be applying for a financial grant or other forms of assistance. The criteria here once again going to be very different and often very broad. These organisations are often either government created or sponsored and hence they will be interested in government related issues such as job creation, education, the possibility of foreign investment and of course tax income in the future. As with the previous two categories you need to address the issues important to your target audience.

Once you are clear on your audience, follow some of the other blogs here at UK Business Planning Blog and write a killer business plan. Alternatively contact us at www.sabusinessplans.co.za and we will support you in the process.

Start-up idea of the week: IT support to the small business

This is a much needed idea aimed at all businesses who either cant afford an IT department or are just fedup with the high cost of contractors.

This of you who have worked for large organisation's knows that when something goes wrong with you PC, laptop or network connection you simply call the IT department and they come and sort out the problems. But what about individuals, small businesses, contractors and others who are responsible for their own computer equipment? Support.com is bringing large-scale IT support to the small business.

Launched in the US, Support.com offers these services directly to consumers for just a fraction of what they might pay for computer repair services elsewhere. All services range from R 290 to R990 and include data back-up, spy ware detection and removal, system tune-up, and training and troubleshooting for printers, digital cameras and other equipment. Unlike similar ventures, customers are’t charged a monthly ‘subscription’ fee. Most repairs can be done over the phone or online via a secure web server. And if a problem isn't resolved to a customer's satisfaction, a full refund is available.

When customers contact Support.com either through the website or toll-free number, they connect with specially trained experts —not to customer service representatives. “Our Solutions Engineers don't just know computers; they are experienced in home networking, high-speed data services and popular gadgets from MP3 players to smart phones and personal digital assistants.” With more and more people telecommuting, starting small businesses, and networking home computers for personal or professional pursuits, catering to home office needs could be big business for entrepreneurs who can bring big business solutions directly to consumers. One to start up locally!

Website: http://www.support.com/ Contact: customer support@support.com
This business can easily be run from home initially until growth demands office space of your own.

Upside: You only have to remember your own IT frustrations to know how valuable this type of service is to small business owners with tight deadlines and tighter budgets.Downside: Its fairly easy to start-up and once you make a success out of it you can be assured that competitors will follow.

Verdict: A great idea for entrepreneurs with IT savvy, a bit of cash and the drive to make it work. Initial set-up costs may be relatively low but a solid marketing plan and budget to support it is a must. My research has shown nothing similar in South Africa yet, so the early bird is likely to grab market share.

If you need support with your business or business plans please contact us a business
plan support