When and how to review your business plan The importance of ongoing business planning Most potential investors will want to see a business plan before they consider funding your business.
When and how to review your business plan The importance of ongoing business planning Most potential investors will want to see a business plan before they consider funding your business. Although many businesses are tempted to use their business plans solely for this purpose, a good plan should set the course of a business over its lifespan.
A business plan plays a key role in allocating resources throughout a business.
It is a tool that can help you attract new funds or that you can use as a strategy document. A good business plan reveals how you would use the bank loan or investment you are asking for. Ongoing business planning means that you can monitor whether you are achieving your business objectives.
A business plan can be used as a tool to identify where you are now and in which direction you wish your business to grow. A business plan will also ensure that you meet certain key targets and manage business priorities. You can maximise your chances of success by adopting a continuous and regular business planning cycle that keeps the plan up-to-date.
This should include regular business planning meetings which involve key people from the business. To find out more, see our guides on how to review your business performance and how to assess your options for growth. If you regularly assess your performance against the plans and targets you have set, you are more likely to meet your objectives.
Many businesses choose to assess progress every three or six months. The assessment will also help you in discussions with banks, investors and even potential buyers of your business. Regular review is a good vehicle for showing direction and commitment to employees, customers and suppliers.
What your business plan should include Your business plan should include a summary of what your business does, how it has developed and where you want it to go. In particular, it should cover your strategy for improving your existing sales and processes to achieve the growth you desire.
You also need to make it clear what timeframe the business plan covers - this will typically be for the next 12 to 24 months. The plan needs to include: The marketing aims and objectives, for example how many new customers you want to gain and the anticipated size of your customer base at the end of the period.
To find out about marketing strategy, see our guide on how to create your marketing strategy. Operational information such as where your business is based, who your suppliers are and the premises and equipment needed.
Financial information, including profit and loss forecasts, cash flow forecasts, sales forecasts and audited accounts.
A summary of the business objectives, including targets and dates. If yours is an owner-managed business, you may wish to include an exit plan. This includes planning the timing of your departure and the circumstances, e.
If you intend to present your business plan to an external audience such as investors or banks, you will also need to include: The individual business plans of the departments and separate business units will need to be integrated into a single strategy document for the entire organisation.
This is not just an issue for large enterprises - many small firms consist of separate business units pursuing different strategies. To draw up a business plan that marries all the separate units of an organisation requires a degree of co-ordination.
It may seem obvious, but make sure all departments are using the same planning template. Generally, individual unit plans are required to be more specific and precisely defined than the overall business plan. However complex it turns out to be, the individual business unit plan needs to be easily understood by the people whose job it is to make it work.
They also need to be clear on how their plan fits in with that of the wider organisation. Plan and allocate resources effectively The business plan plays a key role in allocating resources throughout a business so that the objectives set in the plan can be met. For example, if a particular business unit or department has been given a target, the business plan should allocate sufficient resources to achieve it.
These resources may already be available within the business or may be generated by future activity. In practice this could mean recruiting more office staff, spending more on marketing or buying more supplies or equipment.Dave is an internationally renowned expert in the fields of business planning, capital raising, and new venture development, and author of the world's #1 business plan template.
Over the past decade,. How to Write a Growth Business Plan. Planning for growth is vital. The owners of successful businesses regularly review their business plans to ensure that they meet needs and respond to demand, variations in the market, and the economy.
Develop your operational plan. This will cover the resources you need for the new strategy. The cover should state if this is a Business Plan, Executive Summary or Financial Projections. So, at this point, your cover page may read as follows: John's Plumbing, Inc. Oct 23, · How to Write a Business Plan for a Subscription Box Service.
The first part of your marketing plan will cover how you are positioning your company and your product or service offering. Positioning is how you will try and present your company to your customers.
They are the drivers of growth for your business model and your financial plan/5(). Prepare a business plan for growth 1 Overview 2 The importance of ongoing business planning When you are reviewing your business plan to cover the next stages, it's important to be clear on how you will allocate your resources to make your strategy work.
For example, if a particular business unit or department has been given a target, the. Your business plan should include a summary of what your business does, how it has developed and where you want it to go.
In particular, it should cover your strategy for improving your existing sales and processes to achieve the growth you desire.