By Olle Tiggelaar at April 27 2019 21:11:37
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.
Description _ What product(s) or service(s) are you offering specifically? Are any patents, copyrights, or trademarks needed? Have they been acquired/filed? What is the size of your business? Where will it be located? Will this require purchasing or building a facility? Will this require leasing a facility? At what cost? Has a lease been negotiated? What personnel will you need? Where will you find suitable employees? What equipment do you need? Will it be purchased or leased? What are the qualifications of your principals? How do their backgrounds promote the success of this venture? Why do they think this will be a successful venture? Possible Data Sources: local Chamber of Commerce; community colleges & local universities; local employee leasing company; real estate agents; US Patent & Trademark Office; US Copyright Office.
I have been putting together business plans for over 25 years and it is clear to me that the strength of its core rests solely on being able to execute the plan. Each year I approach business planning as an opportunity, rather than a burden. I would rather invest the time up front in mapping out the upcoming year, than leaving it to chance to dictate my strategy. While this may force me to think strategically as well as tactically, preparing a detailed business plan in advance enables me to identify the challenges in advance of actually facing them.
So, you see, once you decide which of the 7 ways you're going to do, then the only thing left for you to do is figure out how to make the one or ones you have chosen work. No doubt there would be a lot work to do to do a plan like this. You would need to figure out how to put it all together, do all the calculations, do a lot of what if's, etc.. And I'm sure one of the biggest things would be, would you actually take the time to do something like this or even have the time to do it? You could pay someone to do it but that would probably cost you a lot. Plus if you did that, most likely it would require a lot of back and forth work to get it just like you wanted it which would be even more expensive. But even then, would you spend the money to do it?