This article is not about religion. This article is about the action of prayer and how it can lead you when your business plan appears to have fallen apart. Regardless if you have been funded or seeking funding, the first task on hand would be to pray that you make the correct decisions and take the correct actions to experience success.
Business plans and prayer, in reality, are not always in harmony. This article is to help you understand the bigger picture and how the business plan is just a small part of the equation. Often times, people say that they feel that they are cheating on their beliefs when in business.
This is an inner conflict and can, in time, cause illness, depression and ultimately failure. I am not going to lie to you and say there is a magic solution. However, what age and experience has revealed, is that you do what you need to do, within reason, to make the business work. Then you do what one of the world's top billionaires did. You double back around with your check book and make a difference in areas where you can.
After you have experienced the success, that is when your character is really tested. How do you respond to those in need? How do you help the people you passed on the way to success, good people who missed the boat? How do you help them, short of writing a check?
How do you teach people how to fish, rather than giving them one fish, which will be gone, after dinner?
This is where prayer comes in. And as funny as it may seem, this is the prayer you pray, "before" you experience the success. You pray for guidance on how to help those who are not able to help themselves.
Ok, are you confused yet?
It's like this. At some point, you will see, feel, realize and know from within, that you will experience success on a physical level. At that very moment, you start to pray for a plan to help those who are not able to help themselves. And, at the same time, you continue your faith that you already have success.
Sounds strange? It feels even stranger. It's almost like living in two worlds at the same time. One world is developing, changing and evolving and the other is beyond your reach, but totally depends on your actions.
So to understand how this works, lets back door your prayer.
A child is born in the back woods of America. Child is gifted and has been chosen to bring about a cure for a certain illness. How could this be? His father left when he found out his wife was pregnant. The mother didn't finish high school and is raising the child on a limited income.
Eighteen years later, the child takes a test and is labeled as "exceptionally gifted." Child says he want to go to medical school, but doesn't want to be a doctor. He loved science in school and entered every science fair he could find, when there was a scholarship for the registration.
Tuesday, 21 February 2012
Time For Business Planning
The time of the year to huddle all of your business colleagues in a room to hash out the key initiatives for the upcoming year. The time to throw everything up on the wall and try to get everything done in the first quarter. "This will be the year that all plans will be met" is the battle cry! Every vision, idea and strategy gets bantered about - shouts of "there are no bad ideas!" fill the air. The room is electric with visionaries exchanging ideas on how their idea solves all issues, yet year after year, it seems that plans never actually come to fruition.
Why is that? The intent was there; the energy was present; and ideas were flowing. That's the easy part - coming up with the ideas. The success of your planning doesn't rest on the ideas, but rather, implementing those ideas. It's true, companies need to foster innovation in their business planning, but more importantly, they need to create a business environment that enables team members to execute these ideas with an "on-time, on-budget" mindset. That is where the work begins.
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, why is business planning so crucial? In a word, it provides "clarity". Investing time to develop a plan provides precise clarification of the company vision to both employees and customers. In addition, it provides a mechanism to gauge the results of the business and provides the foundation for future growth plans. In the long haul, it enhances the company valuation through fiscal responsibility, which provides the story of opportunity to any future investor or employee. In short, the benefits of planning allow the company to articulate a common vision to align resources and make an efficient use of investment dollars. A company that is perceived to be a "well-oiled machine" is attractive on many fronts - both externally with investors and internally with employees through job satisfaction and increased tenure.
Strategic Planning & Goals: The first step is to identify the key company goals which will be the over-arching direction of the plan. These goals should be focused on three areas: financial, growth initiatives and alignment to the company's vision/mission. This provides the overall direction of the company by establishing high-level goals that will be achieved by tactical initiatives. The overall plan should be 1 to 3 years with measurement mileposts monthly, quarterly and annually. While the plan is put in place at the onset of the year, it should be constantly re-forecast with actual results throughout the year.
Developing Planning Modules: Compartmentalizing your plan by developing planning modules or "chunks" allows you to attack the plan in parts, yet still maintain a cohesive plan. I have found that developing an annual plan made up of quarterly targets - thus becoming a rolling quarterly forecast financial model - allows for a cohesive structure along with the nimbleness to react to market conditions. At the end of each quarter, a true-up process to align results to annual targets needs to be re-forecast and adjustments made.
Why is that? The intent was there; the energy was present; and ideas were flowing. That's the easy part - coming up with the ideas. The success of your planning doesn't rest on the ideas, but rather, implementing those ideas. It's true, companies need to foster innovation in their business planning, but more importantly, they need to create a business environment that enables team members to execute these ideas with an "on-time, on-budget" mindset. That is where the work begins.
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, why is business planning so crucial? In a word, it provides "clarity". Investing time to develop a plan provides precise clarification of the company vision to both employees and customers. In addition, it provides a mechanism to gauge the results of the business and provides the foundation for future growth plans. In the long haul, it enhances the company valuation through fiscal responsibility, which provides the story of opportunity to any future investor or employee. In short, the benefits of planning allow the company to articulate a common vision to align resources and make an efficient use of investment dollars. A company that is perceived to be a "well-oiled machine" is attractive on many fronts - both externally with investors and internally with employees through job satisfaction and increased tenure.
Strategic Planning & Goals: The first step is to identify the key company goals which will be the over-arching direction of the plan. These goals should be focused on three areas: financial, growth initiatives and alignment to the company's vision/mission. This provides the overall direction of the company by establishing high-level goals that will be achieved by tactical initiatives. The overall plan should be 1 to 3 years with measurement mileposts monthly, quarterly and annually. While the plan is put in place at the onset of the year, it should be constantly re-forecast with actual results throughout the year.
Developing Planning Modules: Compartmentalizing your plan by developing planning modules or "chunks" allows you to attack the plan in parts, yet still maintain a cohesive plan. I have found that developing an annual plan made up of quarterly targets - thus becoming a rolling quarterly forecast financial model - allows for a cohesive structure along with the nimbleness to react to market conditions. At the end of each quarter, a true-up process to align results to annual targets needs to be re-forecast and adjustments made.
Prepare A Business Plan That Guarantees
Success in business comes as a result of planning. You have to have a detailed, written plan that shows what the ultimate goal is, the reason for the goal, and each milestone that must be passed in order to reach your goal.
A business plan is written definition of, and operational plan for achieving your goal. You need a complete but success tool in order to define your basic product, income objectives and specific operating procedures. YOU HAVE TO HAVE A BUSINESS PLAN to attract investors, obtain financing and hold onto the confidence of your creditors, particularly in times of cash flow shortages--in this instance, the amount of money you have on hand compared with the expenses that must be met.
Aside from an overall directional policy for the production, sales effort and profit goals of your product--your basic "travel guide" to business success--the most important purpose your business plan will serve, will be the basis or foundation of any financial proposals you submit. Many entrepreneurs are under the mistaken impression that a business plan is the same as a financial proposal, or that a financial proposal constitutes a business plan. This is just a misunderstanding of the uses of these two separate and different business success aids.
The business plan is a long range "map" to guide your business to the goal you've set for it. The plan details the what, why, where, how and when, of your business--the success planning of your company.
Your financial proposal is a request for money based upon your business plan--your business history and objectives.
Understand the differences. They are closely related, but they are not interchangeable.
Writing and putting together a "winning" business plan takes study, research and time, so don't try to do it all in just one or two days.
The easiest way to start with a loose leaf notebook, plenty of paper, pencils, pencil sharpener, and several erasers. Once you get your mind "in gear" and begin thinking about your business plan, "10,000 thoughts and ideas per minute" will begin racing through your mind...So, it's a good idea when you aren't actually working on your business plan, to carry a pocket notebook and jot down those business ideas as they come to you--ideas for sales promotion, recruiting distributors, and any other thoughts on how to operate and/or build your business.
Later, when you're actually working on your business plan, you can take out this "idea notebook" evaluate your ideas, rework them, refine them, and integrate them into the overall "big picture" of your business plan.
The best business plans for even the smallest businesses run 25 to 30 pages or more, so you'll need to "title" each page and arrange the different aspects of your business plan into "chapters." The format should pretty much run as follows:
Title Page Statement of Purpose Table of Contents Business Description Market Analysis Competition Business Location Management Current Financial Records Explanation of Plans For Growth Projected Profit & Loss/Operating Figures Explanation of Financing for Growth Documentation Summary of Business & Outlook for The Future Listing of Business & personal References
This is a logical organization of the information every business plan should cover. I'll explain each of these chapters titles in greater detail, but first, let me elaborate upon the reasons for proper organization of your business plan.
A business plan is written definition of, and operational plan for achieving your goal. You need a complete but success tool in order to define your basic product, income objectives and specific operating procedures. YOU HAVE TO HAVE A BUSINESS PLAN to attract investors, obtain financing and hold onto the confidence of your creditors, particularly in times of cash flow shortages--in this instance, the amount of money you have on hand compared with the expenses that must be met.
Aside from an overall directional policy for the production, sales effort and profit goals of your product--your basic "travel guide" to business success--the most important purpose your business plan will serve, will be the basis or foundation of any financial proposals you submit. Many entrepreneurs are under the mistaken impression that a business plan is the same as a financial proposal, or that a financial proposal constitutes a business plan. This is just a misunderstanding of the uses of these two separate and different business success aids.
The business plan is a long range "map" to guide your business to the goal you've set for it. The plan details the what, why, where, how and when, of your business--the success planning of your company.
Your financial proposal is a request for money based upon your business plan--your business history and objectives.
Understand the differences. They are closely related, but they are not interchangeable.
Writing and putting together a "winning" business plan takes study, research and time, so don't try to do it all in just one or two days.
The easiest way to start with a loose leaf notebook, plenty of paper, pencils, pencil sharpener, and several erasers. Once you get your mind "in gear" and begin thinking about your business plan, "10,000 thoughts and ideas per minute" will begin racing through your mind...So, it's a good idea when you aren't actually working on your business plan, to carry a pocket notebook and jot down those business ideas as they come to you--ideas for sales promotion, recruiting distributors, and any other thoughts on how to operate and/or build your business.
Later, when you're actually working on your business plan, you can take out this "idea notebook" evaluate your ideas, rework them, refine them, and integrate them into the overall "big picture" of your business plan.
The best business plans for even the smallest businesses run 25 to 30 pages or more, so you'll need to "title" each page and arrange the different aspects of your business plan into "chapters." The format should pretty much run as follows:
Title Page Statement of Purpose Table of Contents Business Description Market Analysis Competition Business Location Management Current Financial Records Explanation of Plans For Growth Projected Profit & Loss/Operating Figures Explanation of Financing for Growth Documentation Summary of Business & Outlook for The Future Listing of Business & personal References
This is a logical organization of the information every business plan should cover. I'll explain each of these chapters titles in greater detail, but first, let me elaborate upon the reasons for proper organization of your business plan.
Write a Bankable Business Plan
Action Step # 1
Define Your Company: What will you accomplish for others?
Write down all the specific needs your company will satisfy. Potential investors need to know that your business will be meaningful and marketable to people who can use your product or service. So concentrate on the external needs your company will meet. What will your product or service enable people to do better, more cheaply, more safely, or more efficiently? Will your restaurant make people's palates delirious with new taste sensations? Will your new mouse trap help people capture mice without feeling sick to their stomachs? Will your new bubble gum scented bubble bath revolutionize the way children agree to take nightly baths?
Think of all the positive benefits your company will provide. Write them down. Admire them. Absorb them into your consciousness. Believe in them. These are the primary motivators that readers of your business plan will respect and value.
Action Step # 2
Identify Your Company's Initial Needs: What will you require to get started?
Whether you want to buy an existing company with 300 employees or you can start your business by only adding an extra phone line to your home office desk, you need to make a list of the materials you'll need. Some may be tangible, such as five hundred file folders and a large cabinet in which to store them all. Other requirements may be intangible, such as time to create a product design or to do market research on potential customers. You may need to hire an assistant to develop a retrievable filing system for the five hundred folders, or hire a consultant to set up a computer system that's beyond your technical skills.
If you're going to build a better mousetrap, you may have constructed a prototype out of used toothpaste tubes and bent paperclips at home, but you'll need a sturdier, more attractive model to show potential investors. What exactly will your mousetrap look like? What materials will you need? Do you require money for research and development to improve on your original toothpaste tube and paper clip construction? Do you need to hire an engineer to draw up accurate manufacturing designs? Should you patent your invention? Will you need to investigate federal safety standards for mousetraps?
Next, do your homework. Call a real estate broker and look at actual retail spaces in the neighborhood where you'd like to open your restaurant. Make a chart of the most expensive and least expensive sites by location and square footage. Then estimate how much space you require and how much money you'll need to allow for rent.
Make a list of all the tangible and intangible resources you need to get your business going. The total estimated price of all of these items will become your start-up cost whether you're buying highly sophisticated computers or simply installing a new telephone line on your desk. If there's any item in your estimates that seems unreasonably high, research other alternatives. But keep in mind that it's better to include every element you truly need along with a reasonable estimate of the cost of each item, so you don't run out of money or default on your loans. Be honest and conservative in your estimates, but also be optimistic.
Action Step # 3
Choose A Winning Strategy: How will you distinguish your product or service from others?
Although there are millions of types of businesses, there are actually only a few basic strategies that can be applied to make any enterprise successful. The first step in selecting an effective strategy is to identify a competitive advantage for your product or service. How will you establish that your product or service is better, cheaper, more delicious, or more convenient? How can you make your company more noticeable than your competitors? What restraints in your business or its industry might determine which strategy you choose?
Your competitive advantage may include designing special features not found in rival products. It may entail superior service characteristics such as speedier delivery, a lower price, or more attentive sales people. Perhaps you're establishing an image or brand of exceptional quality or reputation. Does your product or service bestow a certain status on its users? Does it create more profits or other benefits for your customers' own endeavors?
Perhaps you want to position your mousetrap for a primarily upscale market because the best design requires titanium and manufacturing costs will be so expensive only rich people will be able to afford your product. But maybe the mousetrap is so fantastically effective that wealthy people will want hundreds of them around their vast country homes and polo pony barns.
You must have a reason why your business will succeed. This is the competitive advantage your product or service will deliver. Once you've established the competitive advantage, you will be able to select the best strategy to reach your goal.
Define Your Company: What will you accomplish for others?
Write down all the specific needs your company will satisfy. Potential investors need to know that your business will be meaningful and marketable to people who can use your product or service. So concentrate on the external needs your company will meet. What will your product or service enable people to do better, more cheaply, more safely, or more efficiently? Will your restaurant make people's palates delirious with new taste sensations? Will your new mouse trap help people capture mice without feeling sick to their stomachs? Will your new bubble gum scented bubble bath revolutionize the way children agree to take nightly baths?
Think of all the positive benefits your company will provide. Write them down. Admire them. Absorb them into your consciousness. Believe in them. These are the primary motivators that readers of your business plan will respect and value.
Action Step # 2
Identify Your Company's Initial Needs: What will you require to get started?
Whether you want to buy an existing company with 300 employees or you can start your business by only adding an extra phone line to your home office desk, you need to make a list of the materials you'll need. Some may be tangible, such as five hundred file folders and a large cabinet in which to store them all. Other requirements may be intangible, such as time to create a product design or to do market research on potential customers. You may need to hire an assistant to develop a retrievable filing system for the five hundred folders, or hire a consultant to set up a computer system that's beyond your technical skills.
If you're going to build a better mousetrap, you may have constructed a prototype out of used toothpaste tubes and bent paperclips at home, but you'll need a sturdier, more attractive model to show potential investors. What exactly will your mousetrap look like? What materials will you need? Do you require money for research and development to improve on your original toothpaste tube and paper clip construction? Do you need to hire an engineer to draw up accurate manufacturing designs? Should you patent your invention? Will you need to investigate federal safety standards for mousetraps?
Next, do your homework. Call a real estate broker and look at actual retail spaces in the neighborhood where you'd like to open your restaurant. Make a chart of the most expensive and least expensive sites by location and square footage. Then estimate how much space you require and how much money you'll need to allow for rent.
Make a list of all the tangible and intangible resources you need to get your business going. The total estimated price of all of these items will become your start-up cost whether you're buying highly sophisticated computers or simply installing a new telephone line on your desk. If there's any item in your estimates that seems unreasonably high, research other alternatives. But keep in mind that it's better to include every element you truly need along with a reasonable estimate of the cost of each item, so you don't run out of money or default on your loans. Be honest and conservative in your estimates, but also be optimistic.
Action Step # 3
Choose A Winning Strategy: How will you distinguish your product or service from others?
Although there are millions of types of businesses, there are actually only a few basic strategies that can be applied to make any enterprise successful. The first step in selecting an effective strategy is to identify a competitive advantage for your product or service. How will you establish that your product or service is better, cheaper, more delicious, or more convenient? How can you make your company more noticeable than your competitors? What restraints in your business or its industry might determine which strategy you choose?
Your competitive advantage may include designing special features not found in rival products. It may entail superior service characteristics such as speedier delivery, a lower price, or more attentive sales people. Perhaps you're establishing an image or brand of exceptional quality or reputation. Does your product or service bestow a certain status on its users? Does it create more profits or other benefits for your customers' own endeavors?
Perhaps you want to position your mousetrap for a primarily upscale market because the best design requires titanium and manufacturing costs will be so expensive only rich people will be able to afford your product. But maybe the mousetrap is so fantastically effective that wealthy people will want hundreds of them around their vast country homes and polo pony barns.
You must have a reason why your business will succeed. This is the competitive advantage your product or service will deliver. Once you've established the competitive advantage, you will be able to select the best strategy to reach your goal.
Chinese Restaurant Business Plans
When you start a business you have to know what you are getting yourself into. The restaurant business can throw many surprises at new owners so you must do your research and know exactly what to expect. Many owners of Chinese restaurants that failed within the first year will blame their failure on a lack of planning. If you spend some time researching and writing a business plan for your Chinese restaurant then you will be more likely to see your business succeed.
There are many reasons why it makes sense to prepare a business plan prior to opening a restaurant. Some benefits will seem obvious to you at first but others may not yet have occurred to you.
In the following article we highlight some of the reasons why you need to put together a restaurant business plan before you take the plunge and open up the dim sum or Beijing cuisine restaurant that you have been dreaming about.
Avoid Mistakes
When you start a restaurant you will have to make a lot of different decisions. Some of these decisions can be difficult or expensive to reverse at a late date so you must be sure that you make the correct choices the first time around. By doing the right kind of research and planning you will be able to make informed decisions instead of just guessing.
Imagine opening a Chinese restaurant and then discovering that there are too many located nearby or that there is a trend towards European style cuisine over Asian food among households in your area. In some cases you would have to correct a poorly informed decision by totally re-branding your business and paying for new interior decorating, a new logo, new menus and much more. Your business plan should let you know the right path to follow at the right time.
Clarify Thoughts and Ideas
By writing a business plan you will be able to turn your loose ideas into something more concrete. As you research and write you will allow some of your ideas to evolve and you may come up with new ideas altogether. You may even decide that the ideas that you had originally are not viable at all and look at a totally different business model or industry.
Prove the Viability of Your Proposal
While a business plan is essential for proving the viability of the proposed business to yourself as the future owner, you may have to provide proof to other parties as well. Lenders will want to know more about your business before you can borrow funds from them. Equity investors will want to know what kind of return they will be getting on their investment before they invest. You may even find that a business plan can come in handy when it comes to negotiating a lease with the owner of a commercial space that you would like to rent.
Identify Difficulties and Challenges
It is easy to dream about the Chinese restaurant that you would love to set up and how glamorous it must be to own a restaurant. However, you may be viewing the prospect of being a restaurant owner through rose tinted glasses without imagining the difficulties that go along with it. Some business plan formats encourage you to perform a SWOT analysis. In such an analysis you look at strengths, weaknesses, opportunities and threats. By asking the right questions you will come to learn about the weaknesses of your business model and how you can strengthen them. You will also be challenged to analyze some of the threats that could affect your restaurant and to come up with contingency plans to deal with them.
Assess Startup Requirements
It is important to understand that launching a new Chinese restaurant is a process and a business plan can help you to manage this process. You must have a clear idea of what you need and a schedule so that you can proceed to set up an operational restaurant in an organized manner. There are many things that have to happen in a logical order before you can open your doors to diners. To fully understand each step you will need to know your startup costs, where the funding will come from, how you will acquire equipment, when you will hire staff and much more. There will also be actions that you have to take to comply with local rules and regulations relating to restaurant owners.
Understand Exactly What You Want
You need to know exactly what you want before you can map out a path to get there. Your Chinese restaurant business plan will help you to set some realistic goals and targets. Goals could be related to monthly gross or net profits, restaurant capacity levels or customer satisfaction for example. Once you have set some reasonable goals you can then look at putting systems in place to achieve them.
There are many reasons why it makes sense to prepare a business plan prior to opening a restaurant. Some benefits will seem obvious to you at first but others may not yet have occurred to you.
In the following article we highlight some of the reasons why you need to put together a restaurant business plan before you take the plunge and open up the dim sum or Beijing cuisine restaurant that you have been dreaming about.
Avoid Mistakes
When you start a restaurant you will have to make a lot of different decisions. Some of these decisions can be difficult or expensive to reverse at a late date so you must be sure that you make the correct choices the first time around. By doing the right kind of research and planning you will be able to make informed decisions instead of just guessing.
Imagine opening a Chinese restaurant and then discovering that there are too many located nearby or that there is a trend towards European style cuisine over Asian food among households in your area. In some cases you would have to correct a poorly informed decision by totally re-branding your business and paying for new interior decorating, a new logo, new menus and much more. Your business plan should let you know the right path to follow at the right time.
Clarify Thoughts and Ideas
By writing a business plan you will be able to turn your loose ideas into something more concrete. As you research and write you will allow some of your ideas to evolve and you may come up with new ideas altogether. You may even decide that the ideas that you had originally are not viable at all and look at a totally different business model or industry.
Prove the Viability of Your Proposal
While a business plan is essential for proving the viability of the proposed business to yourself as the future owner, you may have to provide proof to other parties as well. Lenders will want to know more about your business before you can borrow funds from them. Equity investors will want to know what kind of return they will be getting on their investment before they invest. You may even find that a business plan can come in handy when it comes to negotiating a lease with the owner of a commercial space that you would like to rent.
Identify Difficulties and Challenges
It is easy to dream about the Chinese restaurant that you would love to set up and how glamorous it must be to own a restaurant. However, you may be viewing the prospect of being a restaurant owner through rose tinted glasses without imagining the difficulties that go along with it. Some business plan formats encourage you to perform a SWOT analysis. In such an analysis you look at strengths, weaknesses, opportunities and threats. By asking the right questions you will come to learn about the weaknesses of your business model and how you can strengthen them. You will also be challenged to analyze some of the threats that could affect your restaurant and to come up with contingency plans to deal with them.
Assess Startup Requirements
It is important to understand that launching a new Chinese restaurant is a process and a business plan can help you to manage this process. You must have a clear idea of what you need and a schedule so that you can proceed to set up an operational restaurant in an organized manner. There are many things that have to happen in a logical order before you can open your doors to diners. To fully understand each step you will need to know your startup costs, where the funding will come from, how you will acquire equipment, when you will hire staff and much more. There will also be actions that you have to take to comply with local rules and regulations relating to restaurant owners.
Understand Exactly What You Want
You need to know exactly what you want before you can map out a path to get there. Your Chinese restaurant business plan will help you to set some realistic goals and targets. Goals could be related to monthly gross or net profits, restaurant capacity levels or customer satisfaction for example. Once you have set some reasonable goals you can then look at putting systems in place to achieve them.
Continental Travel Business Plan
Executive Summary
The Harvard Branch of Continental Travel is located 30kms east of the CBD on the busy main shopping strip in Harvard and has been operating for only 6 weeks and is still very new to the area. The Branch is open from 9:00am to 5:30 pm each day, and closes at 6pm on Fridays and it is not open on the weekend. The customer demographics represented in the suburb, are from low socio-economic through to high income, with the two key demographic groups that characterize the area, young families with toddlers and primary school aged children also older families with adolescent children in their mid teens to early twenties. There have been a number of new facilities recently built catering for the needs of these two groups and for the growing population of Harvard which include a new child care center for the younger families, a new retirement village for the aging population and a new multi level shopping center at Harvard Park consisting of 500 retail outlets.
The predominant ethnic profile of Harvard is Anglo-Australian with a significant percentage of first, second and third generation Greek and Italian-Australians and more recent, the profile has expanded to include an increasing proportion of new immigrants of Chinese and Vietnamese origin.
The Harvard Branch had been staffed by personnel from the neighboring branches with no previous working relationship consisting of long-serving employees with an average 7 years experience and of short-term staff. All the staff have Anglo-Australian background except for one of the Part Time Travel Associates who is of Greek origin. Although the attrition rate within Continental's Branches is within the average range, there has been a slight increase in turnover over the last 2 months, in particular with the more junior members of the team. Recent satisfaction surveys indicate a 65% staff satisfaction level and 54% staff advocacy.
At present, Harvard does not have a customer base although some of the Senior Travel Consultants have brought a number of their clients over to the new branch with them; this is still insufficient to sustain their own targets, let alone the performance of the entire branch. Most travel inquiries received to date all appear to be interested in domestic holidays, with some of the inquiries made for international travel destinations.
1. Situation Analysis
Australians have been known to be avid travelers and it is not uncommon to find that most Australians have lived overseas at some point in their lives, with the majority traveling overseas for a vacation at least once every 3 years with those within the 20-35 age category undertaken international travel at least every 1-2 years.
The terrorist attacks on September 11,2001, caused significant turmoil in the travel industry especially on international travel and within Australia the effect of this promoted an increase in domestic tourism. The sales of travel insurance also increased whereby Continental made a significant loss in the 6 months after 9/11across all its operations, with a 20% downturn in sales.
The collapse of Ansett Airlines impacted greatly on the domestic tourist market as it reduced the capacity of the domestic airline industry, which caused a loss in confidence in the domestic airlines. The war in Afghanistan and the Bali Bombing, the 2004 Tsunami in Asia brought about further decline in international travel, particularly to the Asian region being one of the premier tourist destinations for Australian travelers. The confidence of Australians to travel abroad is expected to make a very slow recovery given these events making it very difficult for travel agencies to meet their sales targets and still promote growth.
The staff profile within Harvard Branch needs strengthening, as the teams have not worked together previously. The staffing mix needs to reflect the culture and demographic of Harvard where most of the population are of Italian, Greek, Chinese and Vietnamese origin. At the present all staff is of Anglo-Australian, except for one of the Part Time Travel Associates who is of Greek origin. Although the attrition rate within Continental's Branches is within the average range, there has been a slight increase in turnover over the last 2 months, particularly with the more junior members of the team. Recent satisfaction surveys indicate a 65% staff satisfaction level and 54% staff advocacy.
2. Marketing Summary
Typically the travel and tourism market is normally separated into two main categories, business and leisure travel. Each would normally contribute about 45% to total revenues. The remainder is generated from combined business/leisure trips. The market is further separated into domestic and international travel. Domestic travel accounts for approximately 70% of industry revenues. Business travel can be divided into two categories, the medium to large corporate account, and the small independent businessman. Leisure travelers are classified according to the types of trips they take, income, or age. The four primary leisure travel groups are:
1. Adventure, Special Interest, R&R, Honeymoons & Sightseeing Trips.
2. High-Income Travelers.
3. Budget-Conscious Travelers.
4. Families, Students & Seniors.
3. Market Demographics
The Harvard Branch of Continental Travel is located 30kms east of the CBD. While a wide range of customer demographics are represented in the suburb, from low socio-economic through to high income, two key demographic groups characterize the area: young families with toddlers and primary school aged children, and "empty nesters" - older families with adolescent children in their mid teens to early twenties. There have recently been a number of facilities built, catering for the needs of these two groups. For younger families, a new childcare centre, and for the ageing population a new retirement village and nursing home have been established. A multi-level shopping centre, Harvard Park, has also just opened, with over 500 stores now operating.
The predominant ethnic profile of Harvard is Anglo-Australian with a significant percentage of first, second and third generation Greek and Italian-Australians. More recently, the profile has expanded to include an increasing proportion of new immigrants of Chinese and Vietnamese origin.
Harvard Branch is located on the busy main shopping strip in Harvard and is Continental's newest branch in the State, having opened just six weeks ago. As such, it does not have an existing client base. The Branch is open from 9:00am to 5:30 pm each day, and closes at 6pm on Fridays. It is not open on the weekend.
The staff profile within the Harvard Branch appears divergent, but is not atypical. Personnel from the neighboring branches have staffed the Branch and as such, the teams have not worked together previously. There are a high proportion of long-serving employees, with an average 7-year tenure, together with an equally significant percentage of short-term staff. All staff are Anglo-Australian except for one of the Part Time Travel Associates who is of Greek origin. The attrition rate within Continental's Branches is within the average range, although there has been a slight increase in turnover over the last 2 months, particularly with the more junior members of the team. Recent satisfaction surveys indicate a 65% staff satisfaction level and 54% staff advocacy.
4. Market Needs
Domestic and International Packages are a specialized product, and first-hand knowledge of these packages is necessary in order to effectively promote and sell them. Many potential customers are unsure of the location they wish to reach. Part of the value associated with travel agencies is the knowledge they possess about destinations. Customers look to the agency to provide them with sound advice for a competitive price. Continental Travel Group at Harvard is confident in its ability to do so. Continental Travel Group at Harvard can save the customer time and money, and help to ensure that they are satisfied with their vacation.
5. Market Trends
One notable trend in the travel industry is increased deregulation. Deregulation has increased competition and the need for differentiation. In many cases, the prices of airfare and other travel-related services have dropped. Additional trends include caps on agency commissions by many of the larger airlines, increases in adventure travel, and reduction of profit margins.
6. Market Growth
The travel industry is growing. Reasons for this growth include a healthy domestic economy and the increased value of the Aussie has made travel more attractive for Australian residents. The healthy economy has increased business, which in turn will see a boosted domestic business travel for 2007.
7. SWOT Analysis
In the following four sections are the most relevant issues to Continental Travel Group at Harvard's and for its successful operation. Harvard's strengths include its management, experienced staff, marketing experience, and targeted focus. Harvard will capitalize on these and other strengths, to take advantage of opportunities and manage threats. Firm weaknesses are primarily those inherent in a start-up venture.
7.1. STRENGHTS
· International network of more than 1200 stores
· Workforce of over 6500 employees
· Annual T/O of $3.5 Billion
· Expanding at rate of more than 20% a year
· Recognised as the fastest growing business of its kind in the world
· High proportion of long-serving employees average of 7 year tenure
· MANAGEMENT: Harvard's manager has a successful record in this industry. His experience and the network of valuable connections he has developed will contribute greatly to Harvard's success.
· LOCATION: Harvard branch is ideally located.
· EXPERIENCED STAFF: The Harvard team is experienced in the travel business. Most senior members have over five years experience.
7.2 WEAKNESSES
· Lack of differentiation between offerings of major players resulting in price base competition
· Only one staff of Greek origin when significant percentage of ethnic profile are Greek and Italian
· No Chinese or Vietnamese consultants working at branch
· Still to establish a customer/client base
· Branch is closed on the weekends
· Increase in turnover of Junior members within the Team
· Poor staff satisfaction and advocacy levels
· START-UP STATUS: Harvard is a start-up business in the area.
7.3 OPPORTUNITIES
· Australians have traditionally been considered as avid travellers, vacations taken at least once in every 3 years
· Age group of 20-35 travel internationally at least 1-2 years
· Increase in domestic vocations with increased uncertainty in international travel due to wars, terrorist attacks and natural disasters
· New shopping centre with over 500 stores just opened
· Ethnic population with very high percentage of Greek and Italian- Australians
· Increasing population of new immigrants of Chinese and Vietnamese
· Young families and empty nesters
· Older families with adolescent children in their mid teens to early twenties
· Branch is closed on weekends
· The team has not worked together previously
· Package Tours and Cruises
· Selling insurance products
· Incentives from airlines and major hotels
7.4 THREATS
· Decline in international travel due to wars, terrorist attacks and natural disasters in popular tourist/holiday destinations
· The collapse of local airlines reducing the capacity to service the domestic destinations
· Increase in fuel prices
· Web-based travel sites offering cut price travel deals
· Jetstar and Virgin Blue offering flights and packages at highly competitive rates
· New shopping centre with 500 stores just opened including major competitors such as Jetset and Harvey World including smaller independents
· The aging population in the area
· INTERNET AND PRICE COMPETITION: When the airlines were deregulated, price competition increased. Further, the Internet has provided a sales medium for consolidators who compete on price and has also given consumers the ability to plan and arrange trips for themselves. Thus, the traditional agency faces greater competition.
· ECONOMIC DOWNTURN: The strong domestic economy has been good for the travel and tourism industry. Continued growth is anticipated. However, unforeseen or unanticipated economic recession would reduce disposable income and threaten Harvard's sales.
The Harvard Branch of Continental Travel is located 30kms east of the CBD on the busy main shopping strip in Harvard and has been operating for only 6 weeks and is still very new to the area. The Branch is open from 9:00am to 5:30 pm each day, and closes at 6pm on Fridays and it is not open on the weekend. The customer demographics represented in the suburb, are from low socio-economic through to high income, with the two key demographic groups that characterize the area, young families with toddlers and primary school aged children also older families with adolescent children in their mid teens to early twenties. There have been a number of new facilities recently built catering for the needs of these two groups and for the growing population of Harvard which include a new child care center for the younger families, a new retirement village for the aging population and a new multi level shopping center at Harvard Park consisting of 500 retail outlets.
The predominant ethnic profile of Harvard is Anglo-Australian with a significant percentage of first, second and third generation Greek and Italian-Australians and more recent, the profile has expanded to include an increasing proportion of new immigrants of Chinese and Vietnamese origin.
The Harvard Branch had been staffed by personnel from the neighboring branches with no previous working relationship consisting of long-serving employees with an average 7 years experience and of short-term staff. All the staff have Anglo-Australian background except for one of the Part Time Travel Associates who is of Greek origin. Although the attrition rate within Continental's Branches is within the average range, there has been a slight increase in turnover over the last 2 months, in particular with the more junior members of the team. Recent satisfaction surveys indicate a 65% staff satisfaction level and 54% staff advocacy.
At present, Harvard does not have a customer base although some of the Senior Travel Consultants have brought a number of their clients over to the new branch with them; this is still insufficient to sustain their own targets, let alone the performance of the entire branch. Most travel inquiries received to date all appear to be interested in domestic holidays, with some of the inquiries made for international travel destinations.
1. Situation Analysis
Australians have been known to be avid travelers and it is not uncommon to find that most Australians have lived overseas at some point in their lives, with the majority traveling overseas for a vacation at least once every 3 years with those within the 20-35 age category undertaken international travel at least every 1-2 years.
The terrorist attacks on September 11,2001, caused significant turmoil in the travel industry especially on international travel and within Australia the effect of this promoted an increase in domestic tourism. The sales of travel insurance also increased whereby Continental made a significant loss in the 6 months after 9/11across all its operations, with a 20% downturn in sales.
The collapse of Ansett Airlines impacted greatly on the domestic tourist market as it reduced the capacity of the domestic airline industry, which caused a loss in confidence in the domestic airlines. The war in Afghanistan and the Bali Bombing, the 2004 Tsunami in Asia brought about further decline in international travel, particularly to the Asian region being one of the premier tourist destinations for Australian travelers. The confidence of Australians to travel abroad is expected to make a very slow recovery given these events making it very difficult for travel agencies to meet their sales targets and still promote growth.
The staff profile within Harvard Branch needs strengthening, as the teams have not worked together previously. The staffing mix needs to reflect the culture and demographic of Harvard where most of the population are of Italian, Greek, Chinese and Vietnamese origin. At the present all staff is of Anglo-Australian, except for one of the Part Time Travel Associates who is of Greek origin. Although the attrition rate within Continental's Branches is within the average range, there has been a slight increase in turnover over the last 2 months, particularly with the more junior members of the team. Recent satisfaction surveys indicate a 65% staff satisfaction level and 54% staff advocacy.
2. Marketing Summary
Typically the travel and tourism market is normally separated into two main categories, business and leisure travel. Each would normally contribute about 45% to total revenues. The remainder is generated from combined business/leisure trips. The market is further separated into domestic and international travel. Domestic travel accounts for approximately 70% of industry revenues. Business travel can be divided into two categories, the medium to large corporate account, and the small independent businessman. Leisure travelers are classified according to the types of trips they take, income, or age. The four primary leisure travel groups are:
1. Adventure, Special Interest, R&R, Honeymoons & Sightseeing Trips.
2. High-Income Travelers.
3. Budget-Conscious Travelers.
4. Families, Students & Seniors.
3. Market Demographics
The Harvard Branch of Continental Travel is located 30kms east of the CBD. While a wide range of customer demographics are represented in the suburb, from low socio-economic through to high income, two key demographic groups characterize the area: young families with toddlers and primary school aged children, and "empty nesters" - older families with adolescent children in their mid teens to early twenties. There have recently been a number of facilities built, catering for the needs of these two groups. For younger families, a new childcare centre, and for the ageing population a new retirement village and nursing home have been established. A multi-level shopping centre, Harvard Park, has also just opened, with over 500 stores now operating.
The predominant ethnic profile of Harvard is Anglo-Australian with a significant percentage of first, second and third generation Greek and Italian-Australians. More recently, the profile has expanded to include an increasing proportion of new immigrants of Chinese and Vietnamese origin.
Harvard Branch is located on the busy main shopping strip in Harvard and is Continental's newest branch in the State, having opened just six weeks ago. As such, it does not have an existing client base. The Branch is open from 9:00am to 5:30 pm each day, and closes at 6pm on Fridays. It is not open on the weekend.
The staff profile within the Harvard Branch appears divergent, but is not atypical. Personnel from the neighboring branches have staffed the Branch and as such, the teams have not worked together previously. There are a high proportion of long-serving employees, with an average 7-year tenure, together with an equally significant percentage of short-term staff. All staff are Anglo-Australian except for one of the Part Time Travel Associates who is of Greek origin. The attrition rate within Continental's Branches is within the average range, although there has been a slight increase in turnover over the last 2 months, particularly with the more junior members of the team. Recent satisfaction surveys indicate a 65% staff satisfaction level and 54% staff advocacy.
4. Market Needs
Domestic and International Packages are a specialized product, and first-hand knowledge of these packages is necessary in order to effectively promote and sell them. Many potential customers are unsure of the location they wish to reach. Part of the value associated with travel agencies is the knowledge they possess about destinations. Customers look to the agency to provide them with sound advice for a competitive price. Continental Travel Group at Harvard is confident in its ability to do so. Continental Travel Group at Harvard can save the customer time and money, and help to ensure that they are satisfied with their vacation.
5. Market Trends
One notable trend in the travel industry is increased deregulation. Deregulation has increased competition and the need for differentiation. In many cases, the prices of airfare and other travel-related services have dropped. Additional trends include caps on agency commissions by many of the larger airlines, increases in adventure travel, and reduction of profit margins.
6. Market Growth
The travel industry is growing. Reasons for this growth include a healthy domestic economy and the increased value of the Aussie has made travel more attractive for Australian residents. The healthy economy has increased business, which in turn will see a boosted domestic business travel for 2007.
7. SWOT Analysis
In the following four sections are the most relevant issues to Continental Travel Group at Harvard's and for its successful operation. Harvard's strengths include its management, experienced staff, marketing experience, and targeted focus. Harvard will capitalize on these and other strengths, to take advantage of opportunities and manage threats. Firm weaknesses are primarily those inherent in a start-up venture.
7.1. STRENGHTS
· International network of more than 1200 stores
· Workforce of over 6500 employees
· Annual T/O of $3.5 Billion
· Expanding at rate of more than 20% a year
· Recognised as the fastest growing business of its kind in the world
· High proportion of long-serving employees average of 7 year tenure
· MANAGEMENT: Harvard's manager has a successful record in this industry. His experience and the network of valuable connections he has developed will contribute greatly to Harvard's success.
· LOCATION: Harvard branch is ideally located.
· EXPERIENCED STAFF: The Harvard team is experienced in the travel business. Most senior members have over five years experience.
7.2 WEAKNESSES
· Lack of differentiation between offerings of major players resulting in price base competition
· Only one staff of Greek origin when significant percentage of ethnic profile are Greek and Italian
· No Chinese or Vietnamese consultants working at branch
· Still to establish a customer/client base
· Branch is closed on the weekends
· Increase in turnover of Junior members within the Team
· Poor staff satisfaction and advocacy levels
· START-UP STATUS: Harvard is a start-up business in the area.
7.3 OPPORTUNITIES
· Australians have traditionally been considered as avid travellers, vacations taken at least once in every 3 years
· Age group of 20-35 travel internationally at least 1-2 years
· Increase in domestic vocations with increased uncertainty in international travel due to wars, terrorist attacks and natural disasters
· New shopping centre with over 500 stores just opened
· Ethnic population with very high percentage of Greek and Italian- Australians
· Increasing population of new immigrants of Chinese and Vietnamese
· Young families and empty nesters
· Older families with adolescent children in their mid teens to early twenties
· Branch is closed on weekends
· The team has not worked together previously
· Package Tours and Cruises
· Selling insurance products
· Incentives from airlines and major hotels
7.4 THREATS
· Decline in international travel due to wars, terrorist attacks and natural disasters in popular tourist/holiday destinations
· The collapse of local airlines reducing the capacity to service the domestic destinations
· Increase in fuel prices
· Web-based travel sites offering cut price travel deals
· Jetstar and Virgin Blue offering flights and packages at highly competitive rates
· New shopping centre with 500 stores just opened including major competitors such as Jetset and Harvey World including smaller independents
· The aging population in the area
· INTERNET AND PRICE COMPETITION: When the airlines were deregulated, price competition increased. Further, the Internet has provided a sales medium for consolidators who compete on price and has also given consumers the ability to plan and arrange trips for themselves. Thus, the traditional agency faces greater competition.
· ECONOMIC DOWNTURN: The strong domestic economy has been good for the travel and tourism industry. Continued growth is anticipated. However, unforeseen or unanticipated economic recession would reduce disposable income and threaten Harvard's sales.
Detailed Business Plan Template for Your Home
So you want to start a new business! Be it online or offline, a business plan is an essential ingredient to the success of your venture. The trouble with most business plans is they are to difficult to understand and appear overwhelming to most small business entrepreneurs. I have made the job easier by providing a format with self explanatory sections for you to follow. It's a simple business plan with a lot of power when you need to source funding or show clients, among a host of other benefits.
What does my business plan look like?
Executive summary
1.1. product/service: what is your business? detailed description.
1.2. history: when did you start? how has the business been developing? achievements.
1.3. vision: what do you want to become? what path makes your company better than its competitors?
1.4. mission: the core values of your business. why this business and how you want to shape it?
1.5. milestones:
1.5.1. long term: a way to measure the vision
1.5.2. short-medium term: stages & goals, measurements
1.6. resources required:
1.6.1. critical resources: to back up key success factors
1.6.2. overall resources: to guarantee you can deliver
1.6.3. funding and use of funds: the proposal
2. Objectives
2.1. short term:
- outcomes which can be achieved within one year
- quantitative measurement: efficiency
- example: sales, gross margin, market share
2.2. long term:
- outcomes which require more time to be measured
- can be quantitative and qualitative
- effectiveness will show the sustainability of the business proposal
3. Market and industry analysis
3.1. overall & specific data
3.1.1. type of industry / service
3.1.2. mainstream / niche: market potential, demographics
3.1.3. stage of growth: emerging, growth, maturity
3.1.4. existing similar markets: other regions/countries
3.2. competitive analysis
3.2.1. statement of opportunity: sustainable competitive edge, resource based competitive analysis
3.2.2. review of your competitors strategies
3.3. five forces
3.3.1. bargaining power of buyers
3.3.2. bargaining power of suppliers
3.3.3. threat of relevant substitutes
3.3.4. threats of new entrants (entry barriers)
3.3.5. rivalry among firms (influenced by the other four factors)
3.4. macro & micro factors
3.4.1. global & international: trade agreements, war
3.4.2. national: taxation, regulations, patent protection
3.4.3. local: incentives, infrastructures
3.5. key success factors, a review of your strategic management
4. Production & Operations
4.1. processes & procedures
4.1.1. input, process, output
4.1.2. logistics: store, warehouse, deliveries
4.1.3. equipments, tools, it infrastructure
4.1.4. organization charts: responsibilities, information flows
4.2. thresholds
4.2.1. output capacity: measurement, peaks
4.2.2. stages of output increase: bottlenecks
4.3. resources
4.3.1. technical resources: equipment, software
4.3.2. physical resources: raw material, power supply
4.3.3. human resources: non substitutable for the output
4.4. quality assurance
4.4.1. prototyping, testing, approvals
4.4.2. incoming qc: sampling procedures
4.4.3. outgoing qc: sampling procedures
4.5. customer service
4.5.1. technical support: call center, on-site
4.5.2. warranty: policy, returns
5. Marketing plan
5.1. overall concept & orientation
5.1.1. target customer group(s)
5.1.2. customer awareness
5.1.3. customer satisfaction
5.1.4. customer loyalty
5.2. strategy
5.2.1. price strategy (leadership, differentiation, focus)
5.2.2. distribution strategy
5.2.3. communication strategy
5.2.4. perceived value
5.3. 4 p's (can be combined with 3.2.)
5.3.1. product
5.3.2. price
5.3.3. place
5.3.4. promotion
5.4. sales forecasts
5.4.1. short term: detailed (month, region...)
5.4.2. long term
5.5. market share
5.5.1. short term
5.5.2. long term
6. Financial plan
6.1. financial projections (1st year monthly, 2nd year quarterly)
6.1.1. p&l (income statement)
6.1.2. cash flow (justify for variations)
6.1.3. balance sheet (yearly)
6.1.4. investments plan
6.2. source & use of funds
6.2.1. present situation (shareholders, loans if any)
6.2.2. requirements (need in working capital + investments)
6.2.3. proposed funding (shareholding, loan, bridge loan)
6.2.4. use of funds (destination & schedule)
7. Human resources
7.1. management team
7.1.1. individual / team (resumes in appendixe)
7.1.2. education, experience, skills & know how
7.2. skilled resources (key personnel)
7.2.1. hired
7.2.2. identified but not yet hired (funding)
7.2.3. to be found (head hunting...)
7.3. unskilled resources
7.3.1. issue about turnover rate (cost...)
7.3.2. issue about continuous hiring (training...)
7.4. packages & salaries
7.4.1. overall policy (market rate, yearly increase...)
7.4.2. incentives (commissions, bonus...)
7.4.3. specific packages (stock options)
7.5. hr strategy
7.5.1. set of values (refer to mission)
7.5.2. internal communication (intranet, group events)
8. Ownership
8.1. legal & financial structure
8.1.1. form of business
8.1.2. shareholding (equity position)
8.1.3. proposed deal structure (if any)
8.1.4. next round of financing (if any)
8.2. Exit strategy
8.2.1. independent growth (self financing)
8.2.2. ipo
8.2.3. bought over / merging
9. Critical risks
9.1. risks factors
9.1.1. categories (what if? and answers)
9.1.2. plan(s) "b" & book value (if any)
9.1.3. most likely scenario
9.2. collaterals (not often advisable)
10. Summary and conclusions
10.1. Wrap up
10.1.1. compelling opportunity
10.1.2. monitoring uncertainty
10.1.3. timing
10.2. Use of funds & return on investment
11. Scheduling and Milestones
11.1. the "calendar of events"
11.1.1. action plan
11.1.2. p.r. plan
11.2. benchmarking
11.2.1. expected outcome
Appendixes can include:
As you can see the detail is all in the business plan. You can modify the business plan to suit your needs. Remember it is a living document and should be kept up to date and reviewed on a regular basis. If you are just staring out or an existing small business entrepreneur, take the time to build your business plan. It will save you time and money in the long run, and it will provide a solid base to develop your business.
What does my business plan look like?
Executive summary
- type of business
- company summary
- management
- product / service, competition
- funding, use of funds
- financial statement & projections
- legal & financial structure
- risks & exit
- ad hoc swot
1.1. product/service: what is your business? detailed description.
1.2. history: when did you start? how has the business been developing? achievements.
1.3. vision: what do you want to become? what path makes your company better than its competitors?
1.4. mission: the core values of your business. why this business and how you want to shape it?
1.5. milestones:
1.5.1. long term: a way to measure the vision
1.5.2. short-medium term: stages & goals, measurements
1.6. resources required:
1.6.1. critical resources: to back up key success factors
1.6.2. overall resources: to guarantee you can deliver
1.6.3. funding and use of funds: the proposal
2. Objectives
2.1. short term:
- outcomes which can be achieved within one year
- quantitative measurement: efficiency
- example: sales, gross margin, market share
2.2. long term:
- outcomes which require more time to be measured
- can be quantitative and qualitative
- effectiveness will show the sustainability of the business proposal
3. Market and industry analysis
3.1. overall & specific data
3.1.1. type of industry / service
3.1.2. mainstream / niche: market potential, demographics
3.1.3. stage of growth: emerging, growth, maturity
3.1.4. existing similar markets: other regions/countries
3.2. competitive analysis
3.2.1. statement of opportunity: sustainable competitive edge, resource based competitive analysis
3.2.2. review of your competitors strategies
3.3. five forces
3.3.1. bargaining power of buyers
3.3.2. bargaining power of suppliers
3.3.3. threat of relevant substitutes
3.3.4. threats of new entrants (entry barriers)
3.3.5. rivalry among firms (influenced by the other four factors)
3.4. macro & micro factors
3.4.1. global & international: trade agreements, war
3.4.2. national: taxation, regulations, patent protection
3.4.3. local: incentives, infrastructures
3.5. key success factors, a review of your strategic management
4. Production & Operations
4.1. processes & procedures
4.1.1. input, process, output
4.1.2. logistics: store, warehouse, deliveries
4.1.3. equipments, tools, it infrastructure
4.1.4. organization charts: responsibilities, information flows
4.2. thresholds
4.2.1. output capacity: measurement, peaks
4.2.2. stages of output increase: bottlenecks
4.3. resources
4.3.1. technical resources: equipment, software
4.3.2. physical resources: raw material, power supply
4.3.3. human resources: non substitutable for the output
4.4. quality assurance
4.4.1. prototyping, testing, approvals
4.4.2. incoming qc: sampling procedures
4.4.3. outgoing qc: sampling procedures
4.5. customer service
4.5.1. technical support: call center, on-site
4.5.2. warranty: policy, returns
5. Marketing plan
5.1. overall concept & orientation
5.1.1. target customer group(s)
5.1.2. customer awareness
5.1.3. customer satisfaction
5.1.4. customer loyalty
5.2. strategy
5.2.1. price strategy (leadership, differentiation, focus)
5.2.2. distribution strategy
5.2.3. communication strategy
5.2.4. perceived value
5.3. 4 p's (can be combined with 3.2.)
5.3.1. product
5.3.2. price
5.3.3. place
5.3.4. promotion
5.4. sales forecasts
5.4.1. short term: detailed (month, region...)
5.4.2. long term
5.5. market share
5.5.1. short term
5.5.2. long term
6. Financial plan
6.1. financial projections (1st year monthly, 2nd year quarterly)
6.1.1. p&l (income statement)
6.1.2. cash flow (justify for variations)
6.1.3. balance sheet (yearly)
6.1.4. investments plan
6.2. source & use of funds
6.2.1. present situation (shareholders, loans if any)
6.2.2. requirements (need in working capital + investments)
6.2.3. proposed funding (shareholding, loan, bridge loan)
6.2.4. use of funds (destination & schedule)
7. Human resources
7.1. management team
7.1.1. individual / team (resumes in appendixe)
7.1.2. education, experience, skills & know how
7.2. skilled resources (key personnel)
7.2.1. hired
7.2.2. identified but not yet hired (funding)
7.2.3. to be found (head hunting...)
7.3. unskilled resources
7.3.1. issue about turnover rate (cost...)
7.3.2. issue about continuous hiring (training...)
7.4. packages & salaries
7.4.1. overall policy (market rate, yearly increase...)
7.4.2. incentives (commissions, bonus...)
7.4.3. specific packages (stock options)
7.5. hr strategy
7.5.1. set of values (refer to mission)
7.5.2. internal communication (intranet, group events)
8. Ownership
8.1. legal & financial structure
8.1.1. form of business
8.1.2. shareholding (equity position)
8.1.3. proposed deal structure (if any)
8.1.4. next round of financing (if any)
8.2. Exit strategy
8.2.1. independent growth (self financing)
8.2.2. ipo
8.2.3. bought over / merging
9. Critical risks
9.1. risks factors
9.1.1. categories (what if? and answers)
9.1.2. plan(s) "b" & book value (if any)
9.1.3. most likely scenario
9.2. collaterals (not often advisable)
10. Summary and conclusions
10.1. Wrap up
10.1.1. compelling opportunity
10.1.2. monitoring uncertainty
10.1.3. timing
10.2. Use of funds & return on investment
11. Scheduling and Milestones
11.1. the "calendar of events"
11.1.1. action plan
11.1.2. p.r. plan
11.2. benchmarking
11.2.1. expected outcome
Appendixes can include:
- detailed features of the product
- pictures (product, production facility)
- market statistics
- market survey results
- detailed sales forecast
- advertisement, brochure, cdrom of website content
- sample press release
- description of equipments, software
- resumes
- references / recommendations
- detailed financial statements
- bank statements (if any)
- audited accounts (if any)
- registry of commerce certificate
As you can see the detail is all in the business plan. You can modify the business plan to suit your needs. Remember it is a living document and should be kept up to date and reviewed on a regular basis. If you are just staring out or an existing small business entrepreneur, take the time to build your business plan. It will save you time and money in the long run, and it will provide a solid base to develop your business.
Business Plans: What Is It and Why Do I Need It?
A business plan is defined as a formal statement of a set of business goals, reasons why they are believed to be attainable and how you plan on reaching those goals. It can also contain background information about the organization or team attempting to reach those goals.
What are the uses of a business plan?
A business plan is often prepared when you are starting a new organization, business venture or product, or if you are expanding, acquiring or improving any of the aforementioned. It is also used to plan your goals on an annual basis in order to track your progress and make course adjustments.
What are the benefits of business planning?
There are a number of benefits of doing business planning, including the following:
· To identify any problems before implementing plans.
· To get the participation and commitment of those who will help you implement the plans.
· To establish a roadmap to compare results as the venture moves forward into reality.
· To achieve greater profitability.
· To obtain financing from investors.
· To minimize the risk of failure.
· To update your plans and operations as the world changes.
· To clarify your goals and strategies.
However, business planning doesn't end with the business plan. When you start a new venture, you've spent a lot of time on the planning process and are now ready to put them into action. The early period always carries surprises so you better be prepared to find out that what's on your business plan may not go exactly to the point.
What could affect change in your business plans?
· Your market research could be wrong. It doesn't matter how diligent and thorough you were with your research, without thorough knowledge of the actual business you may have interpreted facts or data incorrectly.
· Changes in the economy. The economy is in constant change and customer ability, interest and ability to purchase can change dramatically overnight.
· The product or service may not be what you've projected in your plans. In a new business with multiple products or services, it's important to listen to customers, both those who buy and those who don't, and revise the mix if necessary. The first six months of a business are important in the business planning process. Be flexible in the product line and be open to changing to meet market interest.
· Let customers shape the product and message. The best way to get the right message out to your target customers is to ask them what's important about the product or service you are offering. Focus on this feedback to help improve your business while not sacrificing your integrity.
· Figuring out the right marketing strategies. Part of the business planning process is how you plan on marketing your organization's product or service to attract customers. Drawing from the above points, word of mouth can be more effective than all other marketing activities. People who know you and your organization, as well as satisfied customers and those in your various networks can help you get your foot in through their networks than all of the marketing materials you can make. Focus efforts on these people and let your product speak for itself.
What are the uses of a business plan?
A business plan is often prepared when you are starting a new organization, business venture or product, or if you are expanding, acquiring or improving any of the aforementioned. It is also used to plan your goals on an annual basis in order to track your progress and make course adjustments.
What are the benefits of business planning?
There are a number of benefits of doing business planning, including the following:
· To identify any problems before implementing plans.
· To get the participation and commitment of those who will help you implement the plans.
· To establish a roadmap to compare results as the venture moves forward into reality.
· To achieve greater profitability.
· To obtain financing from investors.
· To minimize the risk of failure.
· To update your plans and operations as the world changes.
· To clarify your goals and strategies.
However, business planning doesn't end with the business plan. When you start a new venture, you've spent a lot of time on the planning process and are now ready to put them into action. The early period always carries surprises so you better be prepared to find out that what's on your business plan may not go exactly to the point.
What could affect change in your business plans?
· Your market research could be wrong. It doesn't matter how diligent and thorough you were with your research, without thorough knowledge of the actual business you may have interpreted facts or data incorrectly.
· Changes in the economy. The economy is in constant change and customer ability, interest and ability to purchase can change dramatically overnight.
· The product or service may not be what you've projected in your plans. In a new business with multiple products or services, it's important to listen to customers, both those who buy and those who don't, and revise the mix if necessary. The first six months of a business are important in the business planning process. Be flexible in the product line and be open to changing to meet market interest.
· Let customers shape the product and message. The best way to get the right message out to your target customers is to ask them what's important about the product or service you are offering. Focus on this feedback to help improve your business while not sacrificing your integrity.
· Figuring out the right marketing strategies. Part of the business planning process is how you plan on marketing your organization's product or service to attract customers. Drawing from the above points, word of mouth can be more effective than all other marketing activities. People who know you and your organization, as well as satisfied customers and those in your various networks can help you get your foot in through their networks than all of the marketing materials you can make. Focus efforts on these people and let your product speak for itself.
Laundromat Business Plan
These days most experts will advise you to create a business plan before you decide to take the risks that are associated with starting a business. A laundromat is typically a little more complicated than other small business models so the need for research, planning and a clear direction are even more essential for entrepreneurs entering the coin operated laundry industry.
A laundromat business plan will help you to prove to yourself that your ideas are viable. With a plan in place you will be able to set clear goals and map out a path towards achieving them in an organized manner. A sound business plan may become essential if you have to show it to financiers or investors prior to getting the startup funds that you need. Lastly it will help you to be more realistic and to ask yourself some tough questions about your ideas.
In this article we have set out a sample laundromat business plan layout. We have set out some examples of titles and content that you might consider using. Feel free to use it as a template as you proceed to put your own plan together.
Cover Letter
Your plan should be set out neatly in a folder with a cover that outlines what the report is about and who contributed to it. It is likely that many different parties will read your plan so you may consider attaching a cover letter to each one that addresses the reader specifically, highlighting the concerns that they will have.
Contents Page
If the plan is any longer than a couple of pages you should include a table of contents. This includes a list of all headings and sub-headings together with a page reference so that the information can be located quickly by the reader.
Executive Summary
An executive summary is a simple introduction to the report. Give the reader a brief introduction to your business plan and summarize each of the sections in the plan.
Mission Statement
While not essential, some businesses like to set out a mission statement which outlines their purpose or business philosophy. It usually covers non-financial motives. For a laundromat you might say that you strive to provide the best service to your customers or that you want to provide a clean, safe and efficient way for them to do their laundry. Your mission should be to do your best for the customer and to be better than your competitors.
Background
Provide readers with some background information on yourself and any other individuals who are involved with the proposed laundromat. Readers may want to know what your qualifications are and if you have had any experience in business or in the coin laundry industry.
Provide a background on the local coin laundry industry so that readers get a better understanding of the opportunities that are available.
If your planning has been in progress for a while then you might want to update the reader on what stage you are at. If you are considering purchasing an existing laundromat then you will want to outline the history of the business in this section too.
Business Description
Offer readers a basic description of the proposed coin laundry business. When will your new unit open for business? Where will it be located? Will you have an attendant on-site at the laundromat all day or only part-time?
Goals and Targets
Set out a list of realistic targets that you want to achieve with the business in the first year or two. Such targets could be financial and relate to gross or net profits on a monthly basis. They could also be related to other metrics such as membership numbers or customer satisfaction rates. Thinking longer term you may also set goals to expand into new locations.
Startup Requirements
Before you can launch your new laundromat business you must know exactly what you are going to need and how much it will cost. Costs will include everything from equipment purchases, renovations and marketing along with professional fees and compliance costs.
Once you have listed everything out you can then work out the total startup cost. From here you can mention some of the options that you have for funding the laundromat. Mention how much you will be able to contribute yourself and how much external funding you will require.
A laundromat business plan will help you to prove to yourself that your ideas are viable. With a plan in place you will be able to set clear goals and map out a path towards achieving them in an organized manner. A sound business plan may become essential if you have to show it to financiers or investors prior to getting the startup funds that you need. Lastly it will help you to be more realistic and to ask yourself some tough questions about your ideas.
In this article we have set out a sample laundromat business plan layout. We have set out some examples of titles and content that you might consider using. Feel free to use it as a template as you proceed to put your own plan together.
Cover Letter
Your plan should be set out neatly in a folder with a cover that outlines what the report is about and who contributed to it. It is likely that many different parties will read your plan so you may consider attaching a cover letter to each one that addresses the reader specifically, highlighting the concerns that they will have.
Contents Page
If the plan is any longer than a couple of pages you should include a table of contents. This includes a list of all headings and sub-headings together with a page reference so that the information can be located quickly by the reader.
Executive Summary
An executive summary is a simple introduction to the report. Give the reader a brief introduction to your business plan and summarize each of the sections in the plan.
Mission Statement
While not essential, some businesses like to set out a mission statement which outlines their purpose or business philosophy. It usually covers non-financial motives. For a laundromat you might say that you strive to provide the best service to your customers or that you want to provide a clean, safe and efficient way for them to do their laundry. Your mission should be to do your best for the customer and to be better than your competitors.
Background
Provide readers with some background information on yourself and any other individuals who are involved with the proposed laundromat. Readers may want to know what your qualifications are and if you have had any experience in business or in the coin laundry industry.
Provide a background on the local coin laundry industry so that readers get a better understanding of the opportunities that are available.
If your planning has been in progress for a while then you might want to update the reader on what stage you are at. If you are considering purchasing an existing laundromat then you will want to outline the history of the business in this section too.
Business Description
Offer readers a basic description of the proposed coin laundry business. When will your new unit open for business? Where will it be located? Will you have an attendant on-site at the laundromat all day or only part-time?
Goals and Targets
Set out a list of realistic targets that you want to achieve with the business in the first year or two. Such targets could be financial and relate to gross or net profits on a monthly basis. They could also be related to other metrics such as membership numbers or customer satisfaction rates. Thinking longer term you may also set goals to expand into new locations.
Startup Requirements
Before you can launch your new laundromat business you must know exactly what you are going to need and how much it will cost. Costs will include everything from equipment purchases, renovations and marketing along with professional fees and compliance costs.
Once you have listed everything out you can then work out the total startup cost. From here you can mention some of the options that you have for funding the laundromat. Mention how much you will be able to contribute yourself and how much external funding you will require.
Writing a Music Business Plan That Works
So let's break this down. Remember that the main aim of any business should be to create and sell products for a profit. Contrary to what some artists/bands say; they actually need money. Making music should not be ONLY for the love of it but it should be about using your skills in a profitable business manner so that you can live on your gift.
Back to writing a business plan that works; In essence, a business must be penned around the 3 ways to grow a business mentioned earlier and the successful workable business plan must be primarily focused on these 3 elements including a few other essentials.
The next question you may ask is, "How do these 3 ways to grow a business relate to writing a workable business plan?" Here is the answer:
1. Increase the number of customers buying your products. No music business can survive only on a handful of fans unless your price points are £1000's. It is therefore crucial that the business plan outlines all the means and methods through which the business plans to grow its' fan base. This is not just listing a few ideas but flesh out in detail how you, as a music entrepreneur, plan to bring in the necessary number of fans to make the business profitable.
2. Sell More to the Same Customers. The customers that buy your first album can also buy your T-Shirt and pay for tickets to the gig. Later on the same clients can also buy the DVD of the event. Your business plan should detail the process through which products can be created as well as means of making the clients purchase these products. The business plan should also be focused on why people will buy the products and the likely quantity of purchase.
3. Increasing The Sale Value of Each Product. I believe Trent Reznor of Nine Inch Nails made the process of selling different priced products to fans very popular. He gave away 9 tracks as a free download, sold 36 tracks for a few dollars, with the top products selling for $300 a piece, making nearly $1m in just a few days. For any independent artist/band, the business plan must be persuasive in the manner it presents the way it plans to sell products of different values to the same customer. It could be that you create different sets of products that can be sold to the same person. This could range from the download, to the physical CD, then a box set, a leather jacket with your branding, and so on.
Remember that writing a business plan that works must be focused on creating a business that works, so time must be taken to research the industry and bring together the right ingredients to ensure success.
Back to writing a business plan that works; In essence, a business must be penned around the 3 ways to grow a business mentioned earlier and the successful workable business plan must be primarily focused on these 3 elements including a few other essentials.
The next question you may ask is, "How do these 3 ways to grow a business relate to writing a workable business plan?" Here is the answer:
1. Increase the number of customers buying your products. No music business can survive only on a handful of fans unless your price points are £1000's. It is therefore crucial that the business plan outlines all the means and methods through which the business plans to grow its' fan base. This is not just listing a few ideas but flesh out in detail how you, as a music entrepreneur, plan to bring in the necessary number of fans to make the business profitable.
2. Sell More to the Same Customers. The customers that buy your first album can also buy your T-Shirt and pay for tickets to the gig. Later on the same clients can also buy the DVD of the event. Your business plan should detail the process through which products can be created as well as means of making the clients purchase these products. The business plan should also be focused on why people will buy the products and the likely quantity of purchase.
3. Increasing The Sale Value of Each Product. I believe Trent Reznor of Nine Inch Nails made the process of selling different priced products to fans very popular. He gave away 9 tracks as a free download, sold 36 tracks for a few dollars, with the top products selling for $300 a piece, making nearly $1m in just a few days. For any independent artist/band, the business plan must be persuasive in the manner it presents the way it plans to sell products of different values to the same customer. It could be that you create different sets of products that can be sold to the same person. This could range from the download, to the physical CD, then a box set, a leather jacket with your branding, and so on.
Remember that writing a business plan that works must be focused on creating a business that works, so time must be taken to research the industry and bring together the right ingredients to ensure success.
Preparing a Business Plan for a Quick Lube Location
Well, it must be that time again, the time when business professors are assigning group projects and business plans on fictitious companies for their students to prepare. This happens each and every year, generally at the starting of each new semester, or right towards the end. You see, generally I am contacted when students are preparing business plans in the automotive sector, due to my career path prior to retirement.
Indeed, I was in the mobile oil change and mobile carwash franchising business. In fact at Harvard business school each year the students study the concept of developing a nationwide car wash chain. The other day, I was contacted by someone who appeared to be a student asking for specific statistics in the oil change sector, and I assume he is preparing a business plan for one of these MBA courses. Indeed, I wished him luck in shaping up his business plan, and inquired if he was looking to get funded.
Specifically, I was trying to determine if he was real, or if he was a student looking for answers to prepare his plan, either way, I was hoping to open up a dialogue on this project of his, because it did sound rather interesting. I believe that the oil change and quick lube industry is ready and ripe for a massive and unexpected pendulum shift from disruptive technology, and so with a strategic regional position and presence, and a smart team could take the whole thing by storm.
I would recommend starting this on a regional basis perhaps in a city with a huge number of automobiles such as Phoenix, Dallas, Los Angeles, San Diego, Orlando, Tampa, Jacksonville, Atlanta, Houston, Austin, Nashville, Albuquerque, or Las Vegas. Why are all those cities below the Mason Dixon line? Simple, due to weather, because that is a factor in all of this. Last these are locations where people care about their cars, because they are able to have nicer cars without worrying about the inclement weather. They also drive their cars more all year round, therefore put on more miles, and thus they need more frequent oil changes.
Next, I would leverage the new technology such as mobile smart phones with GPS, and social networks. Folks who were signed up on such mobile coupon delivery would be notified when they drive nearby one of the locations. Although some of this is starting to happen in the industry, it's not happening very fast, but as it starts to accelerate, this will be disruptive technology, and it could determine winners and losers in the marketplace. This would be a good opportunity for a startup to capture the market with this new technology and enjoy more frequent customers creating a higher volume to increase revenue. Indeed I hope you will please consider all this and think on it.
Indeed, I was in the mobile oil change and mobile carwash franchising business. In fact at Harvard business school each year the students study the concept of developing a nationwide car wash chain. The other day, I was contacted by someone who appeared to be a student asking for specific statistics in the oil change sector, and I assume he is preparing a business plan for one of these MBA courses. Indeed, I wished him luck in shaping up his business plan, and inquired if he was looking to get funded.
Specifically, I was trying to determine if he was real, or if he was a student looking for answers to prepare his plan, either way, I was hoping to open up a dialogue on this project of his, because it did sound rather interesting. I believe that the oil change and quick lube industry is ready and ripe for a massive and unexpected pendulum shift from disruptive technology, and so with a strategic regional position and presence, and a smart team could take the whole thing by storm.
I would recommend starting this on a regional basis perhaps in a city with a huge number of automobiles such as Phoenix, Dallas, Los Angeles, San Diego, Orlando, Tampa, Jacksonville, Atlanta, Houston, Austin, Nashville, Albuquerque, or Las Vegas. Why are all those cities below the Mason Dixon line? Simple, due to weather, because that is a factor in all of this. Last these are locations where people care about their cars, because they are able to have nicer cars without worrying about the inclement weather. They also drive their cars more all year round, therefore put on more miles, and thus they need more frequent oil changes.
Next, I would leverage the new technology such as mobile smart phones with GPS, and social networks. Folks who were signed up on such mobile coupon delivery would be notified when they drive nearby one of the locations. Although some of this is starting to happen in the industry, it's not happening very fast, but as it starts to accelerate, this will be disruptive technology, and it could determine winners and losers in the marketplace. This would be a good opportunity for a startup to capture the market with this new technology and enjoy more frequent customers creating a higher volume to increase revenue. Indeed I hope you will please consider all this and think on it.
Business Plan Mills Turn Out Documents
The Business Plan, and the process involved in crafting these essential documents, is one of the most maligned areas in all of small business. Many start-up firms and entrepreneurs reflexively believe that a plan of some sort is crucial to developing their project. They proceed to download internet templates and fill in the blanks with half vetted due diligence and guesstimates. Others retain reputed business plan writers to craft their documents from incomplete guidance they provide. In both cases, the plans are useless at best, and often harmful to the project.
In its simplest definition a Business Plan is a series of assumptions that are well qualified, well quantified and well narrated. No more. No less.
Assumptions are the skeleton of the plan. Realistic assumptions that can support revenue and financial projections are mandatory. The only way to verify your assumptions is by doing the best possible job of researching every element of the product category, competition and trends in the space you seek to enter. This can be easily accomplished but not by taking the shortcuts we see in almost every amateur plan new review. The homework, preparation and detail that professionals provide is what makes a quality Business Plan work and drives the reader at investment and funding sources to want to read and learn more about an opportunity.
Well qualified assumptions are supported by hard data that can withstand the harshest scrutiny. How did you support the market penetration for year one, two and three that you project? How did you project annual sales turnover? What schedule are you using to define expenses? These are just a few of the assumptions that must be made, then qualified in order to present an exciting, well supported strategy.
The ability to quantify numerical projections is another chasm that most amateur plan writers cannot overcome. Investors are number skeptics. They will hold the most brutal light to the assumptions used to create the income statements, cash flows and balance sheets provided to support the financial underpinnings of the plan. The key to quantifying a Business Plan starts with knowing (really knowing, not guessing) the dead net cost of the good or service you are seeking to offer. We almost never see this type of specificity in amateur plans and this sinks the whole edifice.
In order to produce a well narrated plan you will need excellent writing and communication skills. There are many excellent copy writers that purport to produce professional Business Plans. Unless they understand the process involved in crafting a series of assumptions that can be well qualified, quantified and narrated, they will most assuredly produce a document that falls short of the needed mark. Good writing as opposed to good Business Plan writing is as similar as Karl Marx and Ayn Rand. Your product story should be brisk, interesting (without gratuitous cheerleading) and make the reader want to learn more.
In its simplest definition a Business Plan is a series of assumptions that are well qualified, well quantified and well narrated. No more. No less.
Assumptions are the skeleton of the plan. Realistic assumptions that can support revenue and financial projections are mandatory. The only way to verify your assumptions is by doing the best possible job of researching every element of the product category, competition and trends in the space you seek to enter. This can be easily accomplished but not by taking the shortcuts we see in almost every amateur plan new review. The homework, preparation and detail that professionals provide is what makes a quality Business Plan work and drives the reader at investment and funding sources to want to read and learn more about an opportunity.
Well qualified assumptions are supported by hard data that can withstand the harshest scrutiny. How did you support the market penetration for year one, two and three that you project? How did you project annual sales turnover? What schedule are you using to define expenses? These are just a few of the assumptions that must be made, then qualified in order to present an exciting, well supported strategy.
The ability to quantify numerical projections is another chasm that most amateur plan writers cannot overcome. Investors are number skeptics. They will hold the most brutal light to the assumptions used to create the income statements, cash flows and balance sheets provided to support the financial underpinnings of the plan. The key to quantifying a Business Plan starts with knowing (really knowing, not guessing) the dead net cost of the good or service you are seeking to offer. We almost never see this type of specificity in amateur plans and this sinks the whole edifice.
In order to produce a well narrated plan you will need excellent writing and communication skills. There are many excellent copy writers that purport to produce professional Business Plans. Unless they understand the process involved in crafting a series of assumptions that can be well qualified, quantified and narrated, they will most assuredly produce a document that falls short of the needed mark. Good writing as opposed to good Business Plan writing is as similar as Karl Marx and Ayn Rand. Your product story should be brisk, interesting (without gratuitous cheerleading) and make the reader want to learn more.
Chaos Rules Without a Strategic Business Plan
Developing a strategic business plan is something often overlooked by the overly enthusiastic internet entrepreneur! Understandably the excitement of developing your own money making business online can sometimes cloud your better judgment and this quite often is the case! However the value of a good plan in terms of how fast you grow your business can not and should not be ignored!
Here are 3 pitfalls that await any aspiring internet entrepreneur who fails to first devise a plan for developing a money making business online!
Proper Skills NOT Acquired
As an internet entrepreneur there will be certain skills you'll need to acquire along the way in order to effectively grow your business! It is up to you to determine what it is you need to know and do to make the most out of your efforts and time! Planning in advance will reveal to what you need to master and when and this therefore will allow you to grow both personally as well as financially! Without the necessary skills you stand little chance of succeeding online!
Strategy NOT Set
Both a short and long term strategy must be established in order to build yourself a reliable online income! Here too without recognizing the direction you'll want to take and how to best get there you'll likely 'flounder' in your attempts to make money! Identifying your niche and how best to promote within it is a great start! You'll also want to establish goals and time frames within which you expect to achieve the goals you have set! Developing a plan is the absolute best way to efficiently coordinate your efforts to get the maximum results.
Here are 3 pitfalls that await any aspiring internet entrepreneur who fails to first devise a plan for developing a money making business online!
Proper Skills NOT Acquired
As an internet entrepreneur there will be certain skills you'll need to acquire along the way in order to effectively grow your business! It is up to you to determine what it is you need to know and do to make the most out of your efforts and time! Planning in advance will reveal to what you need to master and when and this therefore will allow you to grow both personally as well as financially! Without the necessary skills you stand little chance of succeeding online!
Strategy NOT Set
Both a short and long term strategy must be established in order to build yourself a reliable online income! Here too without recognizing the direction you'll want to take and how to best get there you'll likely 'flounder' in your attempts to make money! Identifying your niche and how best to promote within it is a great start! You'll also want to establish goals and time frames within which you expect to achieve the goals you have set! Developing a plan is the absolute best way to efficiently coordinate your efforts to get the maximum results.
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