De-Mystifying the Business Plan
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De-Mystifying the Business P De-Mystifying the Business Plan Security Canada Central 2009 October 21, 2009
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De-Mystifying the Business Plan. Security Canada Central 2009 October 21, 2009. “ We don’t plan to fail, ....we fail to plan !” > 80% of businesses fail within five years > 80 % of SME’s have no (formal) Business Plan. - PowerPoint PPT Presentation
Transcript of De-Mystifying the Business Plan
De-Mystifying the Business PlanDe-Mystifying the Business Plan
Security Canada Central 2009October 21, 2009
De-Mystifying the Business Plan
“We don’t plan to fail, ....we fail to plan !”
> 80% of businesses fail within five years> 80% of SME’s have no (formal) Business Plan. Most acknowledge the importance and value of having a formal, written down plan but believe it is complex and difficult. It doesn’t have to be....and plans are much faster and easier to prepare than you might think.....
De-Mystifying the Business Plan
Today’s Seminar
Goal - Promote an understanding of the basics of business plans, and to dispel notions that they are difficult & complexOverview the purpose, and the basic components in plain language.Equip you to be able to build a plan in simple, understandable steps
De-Mystifying the Business Plan
Defining TermsSalesDollar value of completed transactions, (also “revenue”, or “business volume”)Gross ProfitSales minus direct costs of a sale, (such as direct materials or direct labour).Operating ProfitEarnings Before Interest and Taxes, the “bottom line”.Working CapitalCash tied up in the business ...Receivables, Inventory, etc.MarketingAll the things a business does to find, attract, sell to and retain customers.
De-Mystifying the Business Plan
A game plan for your business..... ..what you want your business to become, ..your goals, ..markets and environment, ..strategies you will use to compete and to succeed, ..resources you will need, ..a financial plan,..specific tactics and actions, and..measurements to keep track of progress.
What is a Business Plan?
De-Mystifying the Business Plan
Meant for YOU, not your bankerNOT a “finance” document onlyTo be used regularlyAdjusted and updated ongoingShared with your team, so you can work toward the same goals.Simple, practical and relevant, and...YOUR creation!
De-Mystifying the Business Plan
Links to Ongoing OperationsMost of us have goals or targets
“Operating Budgets”Budgets support some higher purpose.Business Plan defines the higher purpose...
De-Mystifying the Business Plan
Objections to Business Planning• “It’s too hard and complicated.....”• “ It takes too much time...”• “ It’s all nonsense ....”• “ It doesn’t relate to real life...”• “It’s impossible to plan for all the things that happen to
you in business...”• “Things change too quickly for a Business Plan to be
effective....”• “Who can forecast what is going to happen in the
future...?”• “You need to be an accountant to do one...”
De-Mystifying the Business Plan
Why Do I Need a Business Plan ?
ClarityFocusSolid Platform
De-Mystifying the Business Plan
Why Else Do I Need a Business Plan ?
A plan on paper allows you to look at your own ideas, share them, to mould and improve them.It keeps you accountable for your own performance. You need to have a “battle plan” you can share with the troops.Bankers and Investors will typically want a solid business plan.With no plan you can get blindsided by the unexpected.If an owner without a written plan, indispensable to the business, dies, the business could die too.
De-Mystifying the Business Plan
Four Simple Questions:
1. What business are you in, and what do you want it to become?2. Where are you today?3. How will you get where you want to go? 4. How will you make sure it all happens?
De-Mystifying the Business Plan
QUESTION 1: What business are you in, & what do you want it to become?
VISIONMISSION
VALUES STRATEGIC GOALS
De-Mystifying the Business Plan
External Situation AnalysisMarkets, trends, competition, regulation
Internal AnalysisStrengths, Weaknesses, Opportunities & Threats
QUESTION 2: Where are you today...?
De-Mystifying the Business Plan
QUESTION 3: How will you get where you are going?
StrategyCost leadership?
Differentiation?Customer intimacy?
Play to your strengths, take advantage of competitor weaknesses
Marketing Plan• Target Markets, Products & Services, • Sales Promotion, Pricing Strategy, • Channels• Positioning
De-Mystifying the Business Plan
QUESTION 4: How Will You Make Sure It All Happens?Plan Resources Financial Plan Cash Needs
Implementing Goals & Action Plans
Measurements Tracking
Communicating Delegating
De-Mystifying the Business Plan
Keeping It Simple, Short, & Practical
Avoid “Analysis Paralysis”Limit the number of goals, action plans, and measurements. Fit your plan into 10 or 12 pagesGet help, but make it your own Business PlanGet someone to hold you accountable.. Involve your team, delegateTrack your activities & time spent; eliminate time wasters.Prioritize, focus.
De-Mystifying the Business Plan
References and ResourcesOn Line Resources “One-Page Business Plan” ...www.onepagebusinessplan.comBanksBusiness Development Bank of Canada.Government Support
