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