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The location and development of viable business ideas is as much an art, or matter
of luck, as the use of systematic techniques. Certainly, you can use structured
approaches, as described below, but the reality is that having the right background,
being in the right place at the right time, and working hard to create lucky breaks
are likely to be just as important in coming up with sound business ideas.
The concepts presented below represent a series of checklists. They need not be
followed systematically and, most certainly, they should not be perceived as a sure-
fire recipe. Instead, view them as a series of menus from which you can pick and
choose according as your thoughts develop. Probably, the only issue which everyone
searching for new business ideas should review systematically is their own strengths
and weaknesses and to use this as their key building block and jumping off point.
You should build on your strengths and surmount or work around your
weaknesses, and possibly cut your cloth to meet your main limitations. For
example, there is little point in searching for capital-intensive or knowledge-based
ideas if you have slim/no prospects of raising the necessary capital or if your
educational background is unsuitable. OK, OK, we have all heard stories of garage-
starts by school drops-out
Be especially aware that inventors and innovators does not necessarily make good
business people.
Areas where you should make honest assessments of your strengths and
weaknesses include the following:
Educational background
Financial strengths
• Have you access to personal or family funds or finance from other sources?
• How much, how easily, what conditions and when?
• How long could you survive without any (regular) income while your business
develops?
Commitment
Personal qualities
Don't be afraid to ask other people to help assess your strengths and weaknesses.
Write down your assessments and rank your main strengths and weaknesses. Make
sure to avoid the trap of showing something as both a strength and weakness. Use
the resulting list to help set the criteria and boundaries to your search for business
ideas. For example, the scope of your ideas might embrace ideas centered around
one of the following:
1. Specific local services; about $XX,000 cash; use of an existing resource etc.
2. Previous work experience; national markets; formation of team etc.
Be specific but don't place unnecessary limits on the scope of your ideas or thinking. Some clear
ideas may have already
• A manufactured product where you buy materials or parts and make up the
product(s) yourself.
• A distributed product where you buy product from a wholesaler/MLM,
retailer, or manufacturer.
• A service which you provide.
Bear in mind that most good business ideas are not completely original. You may be
familiar with the following diagram which shows the possible combinations of
existing/new products/markets.
The simplest business ideas (existing products in existing markets) will be located
Box 1 and the trickiest (new products in new markets) are likely to be in Box 4. If
you concentrate on pursuing ideas involving existing products in existing markets,
you run the risk of being exposed to severe competition. If you focus on new
products in new markets, you might find yourself too far out on a limb. Look most
closely at the combinations of products and markets in boxes 2 & 3.
You must narrow your search to specific market or product areas as quickly as
possible. For example, the "food business" is too broad a search area. Do you mean
manufacturing, distribution or retailing, or do you mean fresh, frozen, pre-prepared
etc. or do you mean beverages, sauces, confectionery etc.? It is better to pursue
several specific ideas (hypotheses) rather than one diffuse concept which lacks
specifics and proves impossible to research and evaluate.
Generally, you should always aim for quality rather than cheapness. Be very cautious
about pursuing ideas which involve any prospect of price wars or are very price
sensitive; of getting sucked into short-lived fads; or of having to compete head-to-
head with large, entrenched businesses.
• Emerging Trends
For example, the population within your area may be getting older and
creating demand for new products and services.
• Expanding Market Niches
For example, local industries may be outsourcing more of their services.
Above all, open your eyes wide and try to spot the obvious gaps. By all means be inventive,
imaginative and original in your thinking but stay market- and consumer-orientated rather than
product-obsessed. We all know stories about people inventing a better mousetrap and never
getting a nibble from the market!!
One way of evaluating ideas would be to use a simple scoring system using gut-feel
with a limited number of criteria as shown below.
Before scoring individual ideas, run through the criteria and set what you feel should
be minimum desirable scores for each. The resultant total could be used as your
overall minimum threshold. If some ideas don't achieve satisfactory scores, drop
them and look for better ones.
Once your short-list has been developed, you will need to start devoting substantial
time to assessment, research, development and planning. For a start, you could
pursue the following tasks:
Find out what they really think - there is a danger that people will tell you what they think you
would like to
hear. Listen carefully to what is being said; watch carefully for qualifications,
hesitations etc.; and don't brow beat respondents with your ideas - you are
looking for their views.
Avoid over-estimating likely sales and under-estimating costs or lead times. Better to be relatively
conservative. Don't confuse profits and cash - see the paper entitled Making Cashflow
Forecasts for further information - and
make sure that you make adequate provision for working capital.
Think through possible problems. What would happen if sales took twice the
expected time to develop while costs escalated? What would happen if .......
Bear in mind that the incubation period for a new business can easily last several
months or even years. Don't rush into the first feasible idea without letting it
incubate or develop in your mind for a reasonable period. There might be a tendency
to get all fired up and enthusiastic such that your heart is starting to rule your head.
Instead, stand back and think!!
Most probably, you will start addressing all these tasks in parallel rather than
sequentially. Other issues which you may need to start thinking about include the
following:
If, at all feasible, there are huge advantages to be gained by embarking on a "soft start" or
pilot launch before plunging full tilt into the new business. This approach can be of
enormous value in helping to firm up on the scope of the opportunity; gaining more
insights into the market; debugging products and getting customer feedback; curtailing
costs and personal or financial exposure; acquiring a track record etc. etc. - check
Devising Business Strategies for further insights into "soft start" strategies.
Developing a Strategic Plan
For inspiration (and a few smiles), have a look at some of the quotations and
examples of bad advice included in other pages!
A strategic plan should not be confused with a business plan. The former is likely to
be a (very) short document whereas a business plan is usually a much more
substantial and detailed document. A strategic plan can provide the foundation and
frame work for a business plan. For more information about business plans, refer to
Writing a Business Plan, Insights into Business Planning and Free-Plan: Business Plan
Guide & Template.
A strategic plan is not the same thing as an operational plan. The former should be
visionary, conceptual and directional in contrast to an operational plan which is likely
to be shorter term, tactical, focused, implementable and measurable. As an example,
compare the process of planning a vacation (where, when, duration, budget, who
goes, how travel are all strategic issues) with the final preparations (tasks, deadlines,
funding, weather, packing, transport and so on are all operational matters).
• Vision
• Mission
• Values
• Objectives
• Strategies
• Goals
• Programs
The Vision
The first step is to develop a realistic Vision for the business. This should be
presented as a pen picture of the business in three or more years time in terms of its
likely physical appearance, size, activities etc. Answer the question: "if someone
from Mars visited the business, what would they see (or sense)?" Consider its future
products, markets, customers, processes, location, staffing etc. Here is a great
example of a vision:
I will come to America, which is the country for me. Once there, I will become the
greatest bodybuilder in history.......... I will go into movies as an actor, producer and
eventually director. By the time I am 30 I will have starred in first movie and I will
be a millionaire...... I will collect houses, art and automobiles. I will marry a
glamorous and intelligent wife. By 32, I will have been invited to the White House.
Attributed to Arnold Schwarzenegger who was elected Governor of the State of
California in 2003.
The Mission
The nature of a business is often expressed in terms of its Mission which indicates
the purposes of the business, for example, "to design, develop, manufacture and
market specific product lines for sale on the basis of certain features to meet the
identified needs of specified customer groups via certain distribution channels in
particular geographic areas". A statement along these lines indicates what the
business is about and is infinitely clearer than saying, for instance, "we're in
electronics" or worse still, "we are in business to make money" (assuming that the
business is not a mint !). Also, some people confuse mission statements with value
statements (see below) - the former should be very hard-nosed while the latter can
deal with 'softer' issues surrounding the business. The following table contrasts hard
and soft mission statements.
Hard Soft
Reason for existence
What business is/does Competitive advantages
Primary products/services Unique/distinctive features
Key processes & technologies Important philosophical/social
Main customer groups issues
Primary markets/segments Image, quality, style,
Principal channels/outlets standards
Stakeholder concerns
Intel's original plan, written on the back of a menu (view copy), is an excellent
example of a hard statement:
The company will engage in research, development, and manufacture and sales of
integrated electronic structures to fulfill the needs of electronic systems
manufacturers. This will include thin films, thick films, semiconductor devices, and
......... A variety of processes will be established, both at a laboratory and production
level ...... as well as the development and manufacture of special processing and
test equipment required to carry out these processes. Products may include dioded
transistors ....... Principal customers for these products are expected to be the
manufacturers of advanced electronic systems ..... It is anticipated that many of
these customers will be located outside California.
The Values
The next element is to address the Values governing the operation of the business
and its conduct or relationships with society at large, customers, suppliers,
employees, local community and other stakeholders.
The Objectives
The third key element is to explicitly state the business's Objectives in terms of the
results it needs/wants to achieve in the medium/long term. Aside from presumably
indicating a necessity to achieve regular profits (expressed as return on
shareholders' funds), objectives should relate to the expectations and requirements
of all the major stakeholders, including employees, and should reflect the underlying
reasons for running the business. These objectives could cover growth, profitability,
technology, offerings and markets.
The Strategies
Next are the Strategies - the rules and guidelines by which the mission, objectives
etc. may be achieved. They can cover the business as a whole including such matters
as diversification, organic growth, or acquisition plans, or they can relate to primary
matters in key functional areas, for example:
o The company's internal cash flow will fund all future growth.
o New products will progressively replace existing ones over the next 3
years.
o All assembly work will be contracted out to lower the company's break-
even point.
Next come the Goals. These are specific interim or ultimate time-based
measurements to be achieved by implementing strategies in pursuit of the
company's objectives, for example, to achieve sales of $3m in three years time.
Goals should be quantifiable, consistent, realistic and achievable. They can relate to
factors like market (sizes and shares), products, finances, profitability, utilization,
efficiency.
The Programs
The final elements are the Programs which set out the implementation plans for the
key strategies. These should cover resources, objectives, time-scales, deadlines,
budgets and performance targets.
Take each element and quantify by reference to actual performance. Ask of each
"why not"?, "why only"?, or "why so"? and locate the reasons for differences between
the actual and desired performance.
Drill Down
Take each item in this formula, explore its contents and derive performance
measures or ratios. For example:
Sales break down into sales values, units, prices, discounts, commissions, bad
debts and so on.
Net income is derived by deducting costs (materials, labor, power etc.),
expenses, interest and depreciation from sales revenue.
Shareholders' funds are based on the value of fixed assets, current assets,
current liabilities, debt etc.
Subject the resultant ratios to critical examination and attempt to compare them
with industry norms. The paper entitled Managing Working Capital explains key
working capital ratios.
Note that the Exl-Plan financial planners generate extensive ratios based on
projected P&Ls, cashflow forecasts and balance sheets for 1-3-5-7 years ahead.
By way of an example consider why this company may be unable to increase its
market share:
Because it cannot penetrate major customers because its product range is too
narrow because the company doesn't have the capability to produce additional
products because of shortcomings in R & D because of a lack of expertise and
resource because R & D is not an immediate priority because of a lack of profits
because of a high interest burden because the company is over-reliant on
borrowings because the shareholders won't/can't raise additional permanent capital.
The moral in this case is that there are no major customers due to under-
capitalization !
Also have a look at the discussion on causes of business failure in Devising Business
Strategies.
Strengths and weaknesses are essentially internal to the organization and relate to
matters concerning resources, programs and organization in key areas. These
include:
If a startup is being planned, the strengths and weaknesses are related mainly to the
promoter(s) - their experience, expertise and management abilities - rather than to
the project.
The external threats and opportunities confronting a company, can exist or develop
in the following areas:
Against an uncertain and shifting background, the objective must be to identify and
prioritize the key SWOTs in a one-handed manner (Don't say "on the one hand
...........but on the other hand.........").
Once the SWOT review is complete, the future strategy may be readily apparent or,
as is more likely the case, a series of strategies or combinations of tactics will
suggest themselves. Use the SWOTs to help identify possible strategies as follows:
• Build on strengths
• Resolve weaknesses
• Exploit opportunities
• Avoid threats
It should be possible in the course of a few pages to set down the main elements of
a business's vision, mission, values, objectives, goals, strategies, SWOTs etc. The
compilation of a short report along these lines is likely to prove much more difficult
than a lengthy dissertation which mixes up details and principles, and confuses the
broad picture. See a sample strategic plan - use the back button on your browser to
return to this page.
Note: This worksheet is available as a free Online Strategic Planner. See sample
strategic plan - you may wish to print it for reference purposes. (Use the back button
on your browser to return to this page.)
5a Shareholders
If you have prepared a strategic plan along the lines suggested above, you have
several possible pathways. These include the preparation of a full-blown business
plan, compilation of financial projections, undertaking market research, product
development, management team-building etc. etc. You may also wish to refer to
some other papers in this series which cover business ideas, business strategies,
cashflow forecasting and managing working capital.
If you need to produce financial projections as part of a strategic plan or for use on
their own, take a look at our extensive range of Excel-based financial planners - Exl-
Plan - which can be used to prepare 3/5-year financial projections (P&Ls, cashflows,
balance sheets, ratio analyses and graphs). It incorporates a Quik-Plan facility for
doing quick and dirty projections. If you seek a very simple solution, look at Exl-Plan
Basic (US$ 29) which generates comprehensive "high-level" 5-year projections
based on annual assumptions (in contrast to the more detailed monthly and
quarterly assumptions used by other versions in the Exl-Plan range). Get the details
and free trial downloads.
If you need to go into more detail with your strategic plan, have a look at the
following software-based expert systems:
• Plan Write Expert Business Planner: Combined business plan tool and expert
system to help evaluate and develop your plan.
• Quick Insight - Business Idea Assessor: Expert system to help evaluate and
improve a new business idea.
• Business Insight - Strategy Evaluator: Sophisticated expert system for
evaluating, developing and comparing business and marketing strategies.
For many, many entrepreneurs and planners, the process of planning (thinking,
discussing, researching and analyzing) is just as, or even more, useful than the final
plan. So, even if you don't need a formal plan, think carefully about going through
the planning process. It could be enormously beneficial to your business.
Anticipate many weeks of hard work and several drafts of the emerging plan to get
the job right. A clearly written and attractively packaged business plan will make it
easier to interest possible supporters, investors etc. A well-prepared business plan
will demonstrate that the managers or entrepreneurs know the business and that
they have thought through its development in terms of products, management,
finances, and most importantly, markets and competition.
For more guidance on these matters, check the white paper offering Insights into
Business Planning, the Checklist for Preparing a Business Plan, Free-Plan (free 150-
page Business Plan Guide and Template in Word format) and the comprehensive
Business Plan Guide.
In the following sections, we discuss the preparation of a strategic plan and present
ideas for preparing the outline of a business plan and writing up the detail.
• Vision
• Mission
• Objectives
• Values
• Strategies
• Goals
• Programs
Vision
The first step is to develop a realistic Vision for the business. This should be
presented as a pen picture of the business in three or more years time in terms of its
likely physical appearance, size, activities etc. Answer the question: "if someone
from Mars visited the business, what would they see or sense?"
Mission
The nature of a business is often expressed in terms of its Mission which indicates
the purposes of the business, for example, "to design, develop, manufacture and
market specific product lines for sale on the basis of certain features to meet the
identified needs of specified customer groups via certain distribution channels in
particular geographic areas". A statement along these lines indicates what the
business is about and is infinitely clearer than saying, for instance, "we're in
electronics" or worse still, "we are in business to make money" (assuming that the
business is not a mint !). Also, some people confuse mission statements with value
statements (see below) - the former should be very hard-nosed while the latter can
deal with 'softer' issues surrounding the business.
Objectives
The third key element is to explicitly state the business's Objectives in terms of the
results it needs/wants to achieve in the medium/long term. Aside from presumably
indicating a necessity to achieve regular profits (expressed as return on
shareholders' funds), objectives should relate to the expectations and requirements
of all the major stakeholders, including employees, and should reflect the underlying
reasons for running the business.
Values
The next element is to address the Values governing the operation of the business
and its conduct or relationships with society, customers, employees etc.
Strategies
Next are the Strategies - the rules and guidelines by which the mission, objectives
etc. may be achieved. They can cover the business as a whole including such matters
as diversification, organic growth, or acquisition plans, or they can relate to primary
matters in key functional areas, for example:
o The company's internal cash flow will fund all future growth.
o New products will progressively replace existing ones over the next 3
years.
o All assembly work will be contracted out to lower the company's
break-even point.
Goals
Next are Goals. These are specific interim or ultimate time-based measurements to
be achieved by implementing strategies in pursuit of the company's objectives, for
example, to achieve sales of $3m in three years time.
Programs
The final elements are the Programs which set out the implementation plans for the
key strategies.
It goes without saying that the mission, objectives, values, strategies and goals must
be inter-linked and consistent with each other. This is much easier said than done
because many businesses which are set up with the clear objective of making their
owners wealthy often lack strategies, realistic goals or concise missions.
For more information on strategic planning, refer to other papers in this series
entitled Developing a Strategic Business Plan (and its accompanying worksheet) and
Devising Business Strategies, and consider utilizing the free Online Strategic Planner.
See also a sample strategic plan - you may wish to print it for reference purposes.
Before any detailed work commences on writing a comprehensive business plan, you
should:
• Clearly define the target audience
• Determine its requirements in relation to the contents and levels of detail
• Map out the plan's structure (contents page)
• Decide on the likely length of the plan
• Identify all the main issues to be addressed.
Shortcomings in the concept and gaps in supporting evidence and proposals need to
be clearly identified. This will facilitate an assessment of research to be undertaken
before any drafting commences. Bear in mind that a business plan should be the
end result of a careful and extensive research and development project which must
be completed before any serious writing of a plan should be started. Under no
circumstances should you start writing a plan before all the key issues have been
crystallized and addressed.
To get started, use the outline below to prepare the basis for your plan. Bear in mind
that if a credible and acceptable outline plan cannot be compiled then it is highly
improbable that a more comprehensive plan can be prepared.
1. Brief Introduction setting out the background and structure of the plan.
2. Summary of a few pages which highlights the main issues and proposals.
3. Main Body containing chapters broken into numbered sections and
subsections.
4. Appendices containing tables, detailed information, exhibits, etc. referred to
in the text.
The outline presented below in conjunction with the comprehensive Business Plan
Guide could serve as the basis for a detailed business plan.
Whilst the sheer length of a business plan may bear no relation to the underlying
prospects of a business, it is likely that a well-developed plan would be at least
twenty pages long plus appendices.
The elapsed time needed to produce a detailed plan might be between twenty and
one hundred days. This would be determined not only by the complexity and scale of
the venture, but also by the scale and maturity of the business and relevant
experience and skills of the management team. Whilst the task of writing the plan
itself may only take a relatively short time, be sure to allocate enough time to the
research, preparatory work and the underlying thinking and discussion.
For more guidance on the length of a plan and the time-scale involved, have a look
at Insights into Business Planning.
Start by defining an outline (i.e. a table of contents) of your plan. This will allow you
to to concentrate on the essentials of planning the business rather than becoming
too absorbed in the detailed drafting of your plan. It will allow you to see the wood
from the trees.
Having devised the basic outline for your business plan, the next task is to expand
this to include subheadings and appendix titles (see the Business Plan Guide for
detailed suggestions). This extended structure should be critically reviewed to ensure
that all the salient elements of the plan are included and that it has a logical flow.
This approach should also ensure that the plan has an appropriate levels of detail
and is correctly targeted at its audience - investors, directors/shareholders, financial
institutions etc. For example, a structure which is mainly devoted to detailed
technical descriptions of products would be completely unsuited to a plan being used
to raise bank finance.
Once the plan's structure has been defined, it can be used as a checklist and basis
for a work program and timetable to complete the plan. This work program will often
entail extensive research and thought prior to the commencement of writing. For
example, formal market research may be needed before sales volumes and prices
can be determined. Another example: professional advice may be required to assess
capital expenditures in relation to the acquisition of premises and so on.
The work program could correspond to key sections of the proposed plan and could
include timetables, resource allocations and cost estimates as indicated in the
following chart:
Elapsed
Section Researched Written Cost Key
time Priority
of Plan by by ($) Actions
(weeks)
Further Suggestions for Business Planning
• Be absolutely clear about the primary purpose and audience of the plan from
the outset. If the plan has to serve multiple purposes, consider producing
tailored versions (or tailored summaries).
• Allow enough time to produce revised drafts of the plan - three/five drafts
would not be unusual.
• Write the Introduction, Summary and Conclusion of the plan only after the
plan's main parts have been finalized.
• At an early stage, make some high-level sales and financial projections
(covering 1-3 years) to explore the general direction and size of the business,
likely viability and possible funding amounts and mix. For this purpose,
consider using the free Online Financial Planner or the Quik-Plan facility within
Exl-Plan, our range of financial planners for use with Excel.
• If the elapsed time needed to prepare the plan and commence its execution is
lengthy, set the start date for financial projection close to the commencement
of execution. For example, if you begin preparing a plan in January and hope
to raise startup finance by October, the start date for projections might be set
to September. Any expenses incurred before this date could be rolled up into
the opening balance sheet for the projections.
• Seek external assistance sooner rather than later. This may take the form of
software tools, consultancy assistance in the form of specific assignments, or
mentoring and counseling on an as required basis.
• If planning a significant business, ensure that a management team has been
identified (and possibly in place) before the plan is finalized.
• Identify and cultivate possible key recipients of the plan during the plan's
preparation. This will ensure that when the plan is finally presented, these
contacts will have some prior knowledge of its contents and the promoters
and, where appropriate, the views of contacts may have been taken into
account during the preparation process.
• Start compiling the plan at the sections devoted to market research/analysis
and sales forecasts/plans, or with details of the proposed product/service
offerings. Leave the detailed financial projections aside until all details in
relation to sales, costs, expenses, operations, capital investment and possible
sources/types of finance have been resolved
• The white paper entitled Insights into Business Planning which has been
based on the views of hundreds of people who have prepared business plans
• Free-Plan, our free Business Plan Guide and Template (for Word)
• The 30-point Checklist for Preparing a Business Plan.
• The comprehensive Business Plan Guide.
If you have a problem or query relating to the compilation of a business plan which is
not covered in the various white papers, you may wish to use our free and
confidential Online Business Plan Advice Service.
5. Outline the Business Plan
The next section presents an outline structure for a business plan. Feel free to
change this outline to suit your project and its state of development. It can be
readily expanded to become a 'full-blown' business plan by extending the level of
detail as explained in the Business Plan Guide.
Note: A free 150-page Business Plan Guide and Template (Word format)
incorporating a similar outline structure and additional detail is available for
downloading here.
The suggested page lengths for a comprehensive plan are given in parenthesis after
each section's heading within the outline. A small, straightforward business should
work within the minimum page lengths whereas a large, complex business seeking
a substantial external investment might hit the maximum page lengths. Note the
importance of marketing and sales in terms of the suggested number of pages for
these sections. For more guidance on the length of business plans, have a look at
Insights into Business Planning.
Avoid going into too much detail within the plan's body by placing detailed or
supplementary material in accompanying appendices. Bear in mind that most
investors, bankers etc. dislike having to read overlong business plans just as much
as entrepreneurs and managers dislike writing the plans in the first instance!
Work on the assumption that whoever reads your plan will be completely unfamiliar
with your business or project and will be seeking answers to relatively basic
questions and key issues, for example, what will the business do, will it make money
etc.
For further information on business planning issues, refer to other papers in this
series which cover insights into business planning, financial planning, cashflow
forecasting, strategic planning, devising business strategies and managing working
capital. You can use our free Online Financial Planner to produce 'first-cut' five-year
projections for your business. Finally, you should review the contents of the Business
Plan Guide.
Note that a free Business Plan Template for Word (48 pages) and a
complementary Guide (supplied as a 90+ topic Help file and as a 100+ page PDF file
for printing) incorporating this outline structure and additional detail is available for
downloading here.
Introduce the plan. Explain who wrote it, when and for what purpose. Give contact
details. See 1. Introduction within the Business Plan Guide for more info.
2. Summary (1-3)
Write last. Present the highlights of the plan. See 2. Summary within the Business
Plan Guide for more info.
What are the central purposes and activities of the planned business? What are its
SWOTs? What are its major objectives, key strategies and prime goals ? See 3.
Mission, Strategies etc. within the Business Plan Guide for more info.
Keep descriptions short and confine them to broad groups. Explain briefly what
makes them special. See 5. Product / Service Offerings within the Business Plan
Guide for more info.
How will the business market its products/services and sell to customers? What sales
will be achieved in its main markets? How will it deal with competitors ? Indicate
costs. See 7. Marketing Strategies, Sales Plans & Projections within the Business Plan
Guide for more info.
Use simple tables to present key financial projections e.g. summary P&L, cashflows,
balance sheets and key ratios. Place the detailed analyses in appendices. See 11.
Financial Projections within the Business Plan Guide for more info.
For more help, download a trial version of our financial planners - Exl-Plan (for Excel)
- and review its annual output reports and Textual Summary Report or use our free
Online Financial Planner to produce 'first-cut' five-year projections for your business.
Explain the major decision points, time scale and actions required by management
and others to progress the plan. See 13. Implementation within the Business Plan
Guide for more info.
Indicate why the business will succeed and why it should be supported. See 14.
Conclusion within the Business Plan Guide for more info.
Appendices
Use appendices at the very back of the plan to present important background data
and detailed plans. This will avoid disrupting the flow of the plan or cluttering it with
excessive detail. See Appendices within the Business Plan Guide for more info.
7. If looking for external equity, be realistic about the value of the business,
risks involved and possible returns, and be sure to indicate possible exit
mechanisms. Put yourself in the shoes of an investor and remember the
golden rule - he who has the gold makes all the rules.
8. The management section of the plan is of crucial - experience, balance, ability
and commitment. If a new venture is involved, then management is likely to
be its only real asset. Consider formation of a management team or
strengthening management as part of the plan. Remember the five
ingredients of a successful business are management, management,
management, market and product (in that order, and not in the reverse
order as some inventors and entrepreneurs might like to think).
9. Be positive but realistic about the business's prospects and explicitly
recognize and respond honestly to shortcomings and risks.
10. When writing the plan:
11. Get a qualified outsider to review your plan in draft form and be prepared to
adjust the plan in the light of comments secured and experiences gained.
12. External help and guidance in preparing a business plan can be extremely
valuable. If outside help is used, make sure that the resultant plan remains
your own and not that of your advisers.
13. If presenting the plan to outsiders, attach appendices and number pages. Add
a contents page and bind it within attractive covers.