Business Planning Templates

Business Planning Templates

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T h e B u sin ess S ystemG en era l E nv iro n m en t

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Department of State Development and Innovation

CONTENTS

SWOT Analysis......................................................................................................................................................................3Business Planning Templates.....................................................................................................................4Step 1: Complete Environmental Scan/Market Research............................................................................6

Task Environment..................................................................................................................................................................7General Environment.............................................................................................................................................................8

Step 2: Develop Competitive Advantage.....................................................................................................9Four Key Questions..............................................................................................................................................................10Our Competitive Advantage Is . . ........................................................................................................................................11

Step 3: Identify & Prioritise Critical Success Factors.................................................................................12Outline Critical Success Factors..........................................................................................................................................14Prioritise & Refine Critical Success Factors.........................................................................................................................15

Step 4: Determine Basis For Growth.........................................................................................................16Determine Basis For Growth . . ...........................................................................................................................................17Determine Growth Objectives..............................................................................................................................................18Determine Profit Objectives..................................................................................................................................................19

Step 5. Identify & Prioritise Key Change Activities.....................................................................................20Step 6: Develop Action Plan......................................................................................................................21Step 7. Performance Evaluation/Benchmarking........................................................................................22Step 8: Complete Financial Evaluation......................................................................................................23

SWOT Analysis

Department of State Development and Innovation Planning for Success .

INTERNAL ENVIRONMENT

EXTERNAL ENVIRONMENT

STRENGTHS

OPPORTUNITIES

WEAKNESSES

THREATS

Business Planning Templates

The following templates are designed as a planning tool for use by business operators in the process of plan development for small to medium-sized businesses.

The templates are designed for practical use by owners/managers in business development situations. The templates reflect a simple, logical and pragmatic approach to Strategic & Operational Planning. Planning is both a creative and analytical process. The templates are not designed to construct business plans for submission to financial institutions. (‘Plans’ for submission to financial institutions could more appropriately be termed ‘Business Cases’.) However, the outputs from this process could be translated for this purpose. Nor are the templates designed as a ‘recipe’ for business planning. Effective business planning requires experience and good judgement and thus, the templates should be used as a support tool and not as a definitive instruction.

A thorough analysis of the business should always precede a business plan. It is therefore preferable that a full diagnosis be undertaken first. The design of the Business Planning Templates assumes that a diagnostic has been undertaken first this usually includes a S.W.O.T. Analysis (Strengths, Weaknesses, Opportunities and Threats).

Upon completion professional advice is recommended for the application of the business planning process by business owners.


Company Details & Business Information

Business Name:

Owner No. 1 Name: Owner No. 2 Name:

No. of Locations: Locations:

Main Location Address:

Telephone: Facsimile: e-mail/web-site:

Business Established: Under Current Owner Since:

Industry: Major Goods/Services:

Brief Business Description:

Approx. Current Turnover: Approx. Current Profit (Before Tax):

Approx. No. of Employees (Full Time Equivalent):


Step 1: Complete Environmental Scan/Market Research

It is important that the Competitive Advantage and the Critical

Success Factors be tested against the present and future

environments of the business.

An environmental scan can be divided into two parts:

Task Environment, i.e. specific organisations or groups in

the immediate business environment that are likely to affect

the business, and

General Environment, i.e. those non-specific forces

surrounding a business that might affect its activities.

The business must deliver greater value to customers than its competitors or create comparable value at a lower cost, or do both.

The Task Environment comprises:

Target Market (Customers & Potential Customers)

Competitors

Suppliers

Strategic Allies

Regulators & Unions

Owners

The General Environment comprises such forces as:

International

Economic

Technological

Socio-cultural

Political

Legal.


Task Environment

List the key demands on the business from these environmental factors (consider present and future):

Target Market (Customers & Potential Customers):

Competitors: Suppliers:

Strategic Allies: Regulators:(Government, Unions, Industry Associations, e.g. MTIA etc. )

Owners:


General Environment

List the key demands on the business from these environmental forces (consider present and future):

International: Economic: Technological:

Socio-Cultural: Political: Legal:


Step 2: Develop Competitive Advantage

The Competitive Advantage is the distinctive

competency of the business that is matched to its future

market opportunities.

The Competitive Advantage must:

be the core statement of what the business is about

reflect the essence of the competitive strength of the

business

preferably, but not necessarily, be unique

be assumed to change over time, i.e. it may be, but will

not necessarily be, sustainable

be simple and clear

influence & guide individual behaviour internal & external to the business now & in the future.

The Components of the Competitive Advantage are:

the type of Goods and/or Services to address customer needs, e.g.

number, range

the Activities to address customer needs, e.g. design and/or build

and/or supply

the Customer Benefits, e.g. low cost, high quality, exclusive etc.

The Competitive Advantage always incorporates a ‘Trade-Off’.

Trade-Offs create the need for choice and purposefully limit what a

company offers.

A simple example of the Competitive Advantage of a sandwich

shop is:

"to make & serve the highest quality gourmet sandwiches in the

local area to consistently exceed customer expectations".

(Trade-Off = price)


Four Key Questions

Answering the following four questions will help you to formulate the Competitive Advantage for your business:

Why do customers buy from us?

Why do customers buy from our competitors and not from us?

Why do some potential customers not buy at all?

What do we have to do to be successful in the future?


Our Competitive Advantage Is . . .

What is the Competitive Advantage of the business? Test it. Does it contain goods/services type, activities, customer benefits?

Our Competitive Advantage is:


The Trade-Off =

Step 3: Identify & Prioritise Critical Success Factors

Critical Success Factors (CSFs) are those features of the business which must be done particularly well to ensure future success and which are essential to the Competitive Advantage.

To determine the Critical Success Factors, consider aspects of:

Inputs, such as: resources that the business uses

Conversion, such as: people company-wide business processes & activities decision-making structure

Outputs, such as: characteristics of the goods and services, e.g. low cost

Examples of Critical Success Factors for the local sandwich shop could include: Establish and maintain an exclusive relationship with a

baker to supply on a daily basis, 6 days per week, a range of speciality and exclusive breads baked according to proprietary recipes

Purchase an extensive range of high quality meats, cheeses, fruits & vegetables

Recruit and train: happy, friendly people with the right attitude to the

customer (‘the customer is always right’) highly efficient, creative people who enjoy making the

best sandwiches for customers

Encourage innovative product suggestions from customers and staff

Charge a premium price but one which, together with the product and the service, ensures customer value-for-money

Promote, make and serve fresh, exclusive, attractive, tasty, well-presented sandwiches always.


Outline Critical Success Factors

Keep it simple, but make sure you identify them all:

1. 5.

2. 6.

3. 7.

4. 8.


Prioritise & Refine Critical Success Factors Template 2B

Use the following grid to help you to prioritise and refine the CSFs for the business. The closer to the upper right-hand corner, the higher the priority.

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A b ility T o D iffe r e n tia te F r o m C o m p e tito r s

1 .

2 .

3 .

4 .

5 .

6 .

7 .

8 .

P rio r it is e C S F ’s


Step 4: Determine Basis For Growth

The challenge for the business is to identify and develop growth opportunities with an acceptable balance of risk and return, consistent with its resources and capabilities. From the 4 strategic options for growth - market penetration, product expansion, market expansion and diversification - determine how the business will grow.

Options For Growth Strategy:

MarketPenetration:

SellingPresent Products

IntoPresent Markets

Product Expansion:

SellingNew Products

IntoPresent Markets

Diversification:

SellingNew Products

IntoNew Markets

Market Expansion:

SellingPresent Products

IntoNew Markets

Present Products New Products

Pres

ent M

arke

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w Ma

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Examples of Each Growth Strategy:

MarketPenetration

Examples:•Expand customer base

•Attract competitors’customers

•Concentrate resourceson most profitable

customers & market

ProductExpansion

Examples:•Develop new product

features•Develop quality variations

•Expand range•Develop totallynew products

Diversification

Examples:•Combine

product & marketexpansion initiatives

MarketExpansion

Examples:•Pursue new geographic

markets•Pusue new

market segments


Pres

ent M

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Risk Level of Growth Strategies:

LowestRisk

MediumRisk

HighestRisk

MediumRisk


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s


Determine Basis For Growth . . .

Record the basis of future growth for the business and note any relevant points:

Present Products New ProductsPr

esen

t Mar

kets

New

Mar

kets

Notes:


Determine Growth Objectives

Determine the Growth Objectives for each product and/or product group for the next 3 years (consistent with Basis For Growth - see Template 4):

Product/

Now ( ) Year 1 ( ) Year 2 ( ) Year 3 ( )

Group Growth Growth Growth

Qty $/unit $ Qty $/unit $ Qty $/unit $ Qty $/unit $

% % % % % %

# $ # $ # $

% % % % % %

# $ # $ # $

% % % % % %

# $ # $ # $

% % % % % %

# $ # $ # $

% % % % % %

# $ # $ # $


Determine Profit Objectives

Determine the Profit Objectives for Gross Profit, for the next 3 years (consistent with Basis For Growth & Growth Objectives

Profit Measure

Now ( ) Year 1 ( ) Year 2 ( ) Year 3 ( )

Gross Profit %(GP/Sales)

Gross Profit

Expenses %

Earnings before interest and tax

Cost of Capital

Economic return % on capital employed


Step 5. Identify & Prioritise Key Change Activities

Identify the Key Change Activities (those Activities which are crucial to the implementation of the plan and the achievement of the Business Objectives). Key Change Activities involve change and it is change that is planned for. They may involve the acquisition and/or devolvement of resources When all Key Change Activities have been identified, prioritise each by number.

Key Change Activities Priority #

Step 6: Develop Action Plan

Key Change Activities Date Date Resources Budget KPI Who's


Start Finish Required (see Templ. 9B)

Responsible?

# 1:

# 2:

# 3:

# 4:

# 5:

Step 7. Performance Evaluation/Benchmarking for use in Template 9A above. (This list is not designed to be comprehensive, but is to be used as a guide only.)

(Key Performance Indicators)

Accounting & Reporting length of average reporting cycle Ordering & Purchasing average order to delivery lead time

performance time to deadline % rejections/time period

Billing & Collecting accounts receivable days Order Taking no. of back orders/time period

% outstanding bad debts/time period no. of cancelled orders/time period


Creditor Payments accounts payable days Planning & Budgeting overall business performance to plan

Customer Feedback no. of guarantee claims/time period performance to budget

no. customer complaints/time period Promotions enquiry contacts per promotional activity

Design & Development no. of prototype rejections/time period Quoting/Pricing % quote acceptance/time period

no. of prototype conversions/ time period % quote rejects/time period

average prototype development lead time conformance with formal price schedule

General Management business performance to growth & profit objectives Receiving & Warehousing average order to delivery lead time

management & staff turnover/time period % rejections/time period

management meetings/time period Staff Appraisal appraisals/time period

Goods/Services Conversion average job lead time actioning of appraisal outcomes/time period

% quality failure/time period Staff Exits staff turnover

no. of guarantee claims/time period costs/time period

% capacity utilisation no. of system complaints/exit interview

Goods/Services Delivery average delivery lead time Staff Recruit. & Selection staff turnover

no. of guarantee claims/time period recruitment costs/time period

Job Scheduling average job lead time/time period Staff Development training costs/time period

hours overtime/time period training needs analysis

Maintenance costs per time period Stock Control inventory turnover or days

% downtime/time period % damaged and/or lost stock/overall stock holding

failures/time period Warranty Claims % sales/time period

Step 8: Complete Financial Evaluation


You would review the Financials of the Business such as your-

Profit & Loss Statements

Balance Sheets.


Business Planning Templates

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