Today I am going to talk about business plans. The need for a business plan is a highly debated topic. In my view it is a must no matter how big or small your company is. This is an often ignored component of a person starting a business. However, not only should it be done when starting a business, but it also should be done no matter how long you have been operating your business. It does not have to be some long elaborate document if you are preparing it for your own benefit and not for funding. If you are preparing the business plan to get funding you must prepare a complete plan, but if you are preparing a plan to give you an operating basis then at a minimum your business plan should include an executive Summary and a Marketing Plan. I say you should at least do this. With the exception of the marketing plan there is no need to go into great detail. At the end of the show I will give you the reason why you should have a business plan.
An Executive Summary – Today I am going to give you an overall checklist for your executive summary. The executive summary is the most important part of your business plan because it is the first impression you are going to make on the reader. It sets the tone for the entire plan and it tells the reader whether they should read on or not. The executive summary should be 2 to 3 pages and there should be no more than one paragraph about each of the following topics:
• Overview - Emphasize the most compelling and gripping item of your business.
• Top Management – Who are you and what have you done before. If you are the only employee list your advisory board.
• Market – How big is the Market and how fast is it growing.
• Customer Need / Customer Pain – How big is the customer need and give evidence
• Product or Service innovation – How is your product or service better
• Go to Market Plan – Include Staffing, distribution and pricing
• Why now? – Why is the timing of your product good now?
• Competition – Who is the competition, how big are they and what are their strengths and weaknesses.
• Financials – Summary of P & L for 3 to 5 years and what are your capital needs if you are looking for funding.
Marketing Plan – The Marketing plan is the most important component to your plan. Do this section well. The marketing plan is the business. You can sell anything if you market it right. Have someone who you respect in business to review your marketing plan and listen to what they have to say.
Market Planning:
● Do you sufficiently understand your markets, your customers and the competitors?
● Do you have a firm grasp on the customer needs for the next three years?
● Does your current product portfolio keep pace with expected technology changes?
● Do you have a three year product and services plan?
● Do you have the right skills internally to be able to answer these questions objectively?
Sales Planning:
● Do you have a cost effective sales process in place for the next three years?
● Where do you have to evolve to in terms of processes and sales models?
● Do you have the correct sales organizational structure in place for the next three years?
● Do you have documented processes?
● Do you have an effective online sales strategy both internally and for our customers?
Once again I would prepare a complete business plan, but at a minimum if you could just do the executive summary as I outlined and the marketing plan, you will at least completed what I consider to be the bare minimum.
To obtain a terrific FREE E-Book written by Jack Derby of Derby Management entitled “Writing the Winning Business Plan” go to:
http://www.derbymanagement.com/our-services/business-planning/
Jack is an Angel investor and Venture capitalist so he has the perfect perspective in writing business plans.
