Do Business Well

The quality of your business plan will ultimatelydetermine the quality of your future and that of your family

A note before you take this step: the business plan is written for YOU. You must be comfortable with it. It must a friendly, easy-to-use, simple guide to help you manage your business and, as importantly, measure your achievements. You must personally compile your business plan and take full ownership of it. Although you may need to use consultants or advisors, this is your future you are planning. The quality of your business plan will ultimately determine the quality of your future and that of your family.

Many entrepreneurs believe they need a business plan only to please the bank and investors. They get consultants or commercial mercenaries to write their business plan for them. We’re telling you now, that’s a big mistake.

You know why it’s a mistake? First of all, because it’s not really your plan, you will not really believe in it. You won’t have the guidance and discipline that comes with your personal involvement in the plan. Secondly, when the bank receives a copy of the plan and interviews you, they’ll rapidly establish that the plan isn’t really yours. That will make it difficult, if not impossible, for you to acquire the support and financing you require.

The real test of a plan is twofold: firstly, whether it can be used to easily answer the most important questions your banker may have. And secondly, whether it can answer the most important questions you may have. You see a great plan eliminates doubt and gives you confidence. And confidence is what makes entrepreneurs really successful.

Outline of a Business Plan

1. Executive Summary:

The executive summary provides a brief overview of the market in which your company will operate as well as the products or services you will deliver. Most importantly, the executive summary should describe the most appealing attributes of your business clearly and concisely. You should write this part of the plan as though it alone would attract investors to your business.

In the executive summary, you need to highlight your edge over similar existing businesses. This edge could be in the form of a unique patented product or service. Or it could be a niche market that has not been served before. Or it could be in the way you will market your product/service.

The driving principle here is that your business must not be a “me- too”. It must stand out. And it must stand out in a meaningful way to the person who matters most, your prospective customer.

Remember, the greater your competitive advantages, the less risk your business faces. And the more likely your bank will be to lend you the money!

2. Business Objectives:

A business objective is the result you want your company to obtain within a specified time frame. These objectives should be realistic and attainable. They must be backed up by facts, not fiction. It is, after all, the easiest thing in the world to become a millionaire on a spreadsheet.

Keep your business objectives limited to between three and five. Too many business objectives will destroy your focus.

You need to do your homework. Your objectives will direct everything else about your business. Remember: garbage in, garbage out, money lost.

3. The Business Concept (description of your product or service) Describe, in detail, the product/service that will form the basis of your business:

* Will you manufacture or purchase the product?

Manufacturing will require a larger capital outlay, due to investment in equipment. When purchasing the product, you will need to invest in stock. In both cases you will need suppliers to service you.

* Are you providing a service?

What is the nature of the service? What is the benefit it will deliver to customers? What is its competitive advantage?

* What is the extent of your range of products/services and will you add tothis range?

Be careful when determining your range of products/services. Stay focused! You cannot be everything to everybody. Less is more. By trying to be everything, you may lose everything.

Possibly related posts: (automatically generated)
Making a Plan: how to construct a simple and workable business plan part 1

• Making a Plan: how to construct a simple and workable business plan part 6
• Making a Plan: how to construct a simple and workable business plan part 3
• Making a Plan: how to construct a simple and workable business plan part 5
• Making a Plan: how to construct a simple and workable business plan part 2
• Previewing the Business Plan: The Best Type for You
• Making a Plan: how to construct a simple and workable business plan part 4
• Personally Presenting the Plan
• How Your Business Situation Helps Shape Your Plan
• Packaging Issues
• What All Plans Must Cover

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