Who doesn’t want Timely, Robust and Profitable Business Growth? Where do you start?
Like every journey it starts with a plan.
Your business plan outlines the goals and objectives of your company and the strategies you will implement to achieve them. While specific content may vary depending on nature of your business, there are essential components that should be included.
The first section is the Executive Summary. This is a brief overview of the entire plan, it should include your key objectives, financial goals and your route to achieve them. You should complete this section last! It will be much easier once you have thought through the other sections.
This is followed by an overview of your business. Describe what your business is all about, your brand and its values, the products or services offered, your target market and your competitive advantage. Summarise the timelines, responsibilities and resources required to execute the strategies outlined in the plan. Include measurable milestones and the key performance indicators (KPIs) that you will use to track progress.
Next explain the results of your market analysis. What research on your target sector and customer base has identified as the opportunity to be exploited with an analysis of your competitors and market trends.
Carry out a SWOT Analysis, assess you and your team’s Strengths and Weaknesses. Consider the Opportunities, and external Threats to your business, applying an assessment of Porter’s 5 Forces would be helpful in this context.
Detail your marketing strategies to attract and retain customers. This includes branding, promotion activities, pricing and sales strategies. Identify the media you will use offline and online to promote your products or services.
You need to show you understand the finances involved in running a business. Share your financial projections, a forecast P &L and predicted cash flow. Include, if appropriate, sources of financing. A good starting point is to create a list of your regular monthly expenses to understand what you need to earn to achieve your breakeven point.
Identify the potential risks that could affect the business. This may include economic, regulatory, political, technological, environmental and socio-cultural risks. Outline the responses you will follow to mitigate or eliminate them.
Importantly explain how you will monitor progress. Describe how and when you will regularly review performance against your stated objectives and modify it as needed.
By including these essential components, a strategic business plan provides the roadmap for your business explaining how you will achieve your objectives and effectively navigate the challenges to be encountered. Remember this should not be a one off but should be reviewed regularly as your journey progresses.
Need some help creating a plan, let’s have a chat!