By Tjitte de Werd at April 27 2019 06:42:39
So, what are the key sections of a great plan document? Well, there are many opinions to this as well as ways to approach it, but there are definitely some key 'ingredients' to a solid plan. A great plan features all the typical main sections, but also has many refinements not found in the average plan. The main sections recommended include a clean, well_designed cover page, table of contents, cover letter, executive summary, business overview, sales and marketing section, operations section, HR section, action plan and financial section with tables for _ at the very minimum _ expenses, revenue, and cash flow projections. Within these sections, a professional writer creates many headings and lots of writing that describes every aspect of the business in very good detail. On average, most business plans end up being about 25 to 35 pages in length.
Now, in addition, when you know the average number of transactions per customer and you know your average dollar sale per transaction, you can also project how many customers you would need over those 10 years as well. This would tell you everything about what your business would need to do to give you the salary you want. So, wouldn't it be nice to see what a plan like this would look like? Could you do it? It might not be as tough as you might think.
Succession Planning _ Unless you plan to run your business for your entire life, you will need a plan of succession. If you are the only person who can run and operate your company, it is doomed to fail when you can no longer run it. Create a plan that will spell out what steps will be taken to either sell your company or hand it over to another manager. Develop a system that allows your business to be run without you. An operations manual that details the key components of running your company is the first step in succession planning. Consult an attorney about the legal aspects of either selling or transferring ownership of your company.
What are the critical steps needed to achieve a successful business plan? This may come as a surprise to my fellow business consultants, but producing a successful business plan is not as difficult as people often think, so long as they follow a logical sequence. Here is my considered view as to the critical steps. 1. Understand what you are planning and why; 2. Define the activities of your organisation; 3. Outline the current position of the business; 4. Review and discuss the external market conditions, undertake and understand a competitive analysis, and define your market positioning; 5. Define your core objectives; 6. Prepare and articulate the strategy to attain and meet the objectives; 7. Identify and review risks and opportunities; 8. Prepare a strategy to deal with risks and exploit opportunities; 9. Refine the strategies into operational plans; 10. Prepare financial forecasts including revenues, costs, cash_flow, capital expenditure and assumptions adopted; 11. Finalise the plan; 12. Get it approved; 13. Use it; 14. Review it regularly and update as appropriate.