| Writing a business plan can be a lot of | | | | want to achieve in the period your |
| hard work or it can be great fun. An | | | | business plan covers. It is said that |
| effective plan can help your company to | | | | good objectives are SMART. That is |
| greatness. A poor one can lead you out | | | | specific, measurable, achievable, |
| of business. No plan is like asking to | | | | realistic and targeted. Here's an |
| fail before you even start. | | | | example of a SMART objective for a |
| Not every business needs a 200 page | | | | hypothetical business. |
| bound business plan. However every | | | | "By the end of this year we will have |
| business needs to have some idea of | | | | increased sales of product X by 7.5% |
| where they want to go and how they are | | | | over the previous year." |
| going to get there. This article covers | | | | You can see how clear this objective is. |
| some key insights into writing a | | | | It is much easier to achieve high |
| business plan that get your business to | | | | performance with clear objectives. |
| where you want to be. | | | | Now you need to outline your STRATEGY. |
| The first stage of any plan is ANALYSIS. | | | | How are you going to reach you |
| You need to take a very objective look | | | | objective(s)? This is where your |
| at a number of factors that may impact | | | | marketing plan often comes in as it |
| your business. There are many factors to | | | | helps describe the programs you will run |
| consider but the two major ones are | | | | to achieve your desired objective(s). To |
| competition and your operating | | | | continue the example above our strategy |
| environment. | | | | may be to gain distribution for our |
| Let's look first at competition. Every | | | | product in one new major retail chain. |
| business has competition, even if you | | | | To make your strategy work you must then |
| think your product or service is unique. | | | | allocate appropriate RESOURCES. Certain |
| How is this? Well it's quite simple | | | | things will need to be provided to reach |
| really, people have choices to make. The | | | | your goal. This could be dollars, |
| most fundamental choice they make in | | | | people, equipment, etc. Your plan must |
| most cases is whether to buy what you | | | | have included the resources you are |
| offer or but something else. For example | | | | allocating and why you believe this is |
| I could buy a game console or I could | | | | adequate to get the result. |
| buy groceries instead. Customers only | | | | Every business plans also has some |
| have so much money available so you | | | | PROJECTIONS. This is your basic |
| first task is to ask yourself what is my | | | | financials that you plan will deliver. |
| competition like and can I beat them? | | | | Are you expecting a profit or loss? How |
| The more you understand your competition | | | | much? |
| the more you can develop your business | | | | Lastly you need to allow for |
| strategy of being different and | | | | CONTINGENCIES. Things change all the |
| outperforming them. | | | | time and your plan needs to consider |
| Now let's look at operating environment. | | | | these possibilities in advance. A good |
| This understands what factors around | | | | way to do this is to ask What if? |
| your area of operation are likely to | | | | What if a new competitor enters our |
| affect your business performance. For | | | | market? |
| some companies this includes looking | | | | What if a distributor delists our |
| around the World in other cases it's | | | | product? |
| just your local neighborhood. You need | | | | What if interest rates rise? |
| to ask questions such as: | | | | Your analysis should give you some idea |
| How is the economy going? | | | | of likely contingencies. It saves a lot |
| What is consumer confidence like? | | | | of stress if you have some documented |
| Where is technology heading in my | | | | ideas for dealing with them before they |
| industry? | | | | become a big problem. |
| After answering all the questions you | | | | Writing a business plan is never |
| need to decide how these might | | | | perfect, the plan is on paper and you're |
| negatively or positively influence your | | | | operating in the real world. However a |
| performance. | | | | good plan can really guide you in the |
| Now you know more about your competition | | | | right direction. Take time to put real |
| and operating environment it's time to | | | | thought into preparing your plan an |
| set some OBJECTIVES. This is what you | | | | above all make sure you USE YOUR PLAN! |