Business planning is one of those things that many business owners know they should be doing, but either don’t know how, or don’t do consistently enough to be useful.
Proper business planning is simply working through various scenarios and deciding on the one that you think is most likely to be successful. Read the 5 keys to effective business planning below and sign up FREE to access free business planning videos.
5 keys to effective business planning
- Plan for multiple scenarios
A good business plan doesn’t just discuss the best case scenario but gives the reader insight into different possibilities and why the business is likely to be successful. Anyone with experience in business understands that a business plan is not a forecast. - The process is important, not the document
The document you end up with is only a by-product of the business planning process. The thought processing, investigating, analysing, researching, advice seeking, information processing and skill acquisition you do while you are planning are what really matters. - Your abilities are under the microscope too
Your skills and knowledge as a business leader will be very obvious to readers of your business plan as will your attitudes. Remember that “you don’t know what you don’t know”. If you sense that some areas of your plan are weak, you should address these concerns before implementing the plan. Management capability always receives a greater weighting than other aspects of your plan. - Back up your plans with concrete facts
Every statement you make should be backed up with concrete facts. It’s also important to avoid sweeping statements like ‘we will take on Google’ or ‘we’re the next SEEK’. Even if it’s true, it can make you sound over-confident or naïve.Instead of a general statement like ‘We’ll recruit 3 sales staff’ expand by saying ‘We will be recruiting salespeople with 3+ years experience in our industry. We have spoken to several recruiters who can help us to source both permanent and contract staff. Our 2 month training schedule will ensure new recruits are well-equipped to succeed in the role.’ - Keep figures clear, concise and realistic
Your figures should be clear, concise and realistic. Three years of projections and a cashflow statement would be standard. If you are presenting to investors or a bank, it is best to talk them through the figures and the assumptions you’ve made face to face rather than let them draw their own conclusions.
Below you’ll find a set of excerpts from business planning case studies contained in the Your Business Success Program. The program is designed to help you to gain the skills to not only run your business but to compile a bulletproof business plan that will stand up to serious scrutiny. Simply enter your details here and we’ll email you them to you instantly.
Business Planning Video Excerpt 1 – Enlisting the professionals
When you’re business planning, it’s important to involve experienced people. In this excerpt Geoff Harris from Flight Centre and Boost Juice as well as a team of other experts roll up their sleeves in a business planning session. Get instant access now.
Business Planning Video Excerpt 2 – Funding considerations
Whether starting or buying a business or franchise, a major consideration in your plan has to be the money. How will you fund it? Will the banks help? What risk is there for you? How can you insure against the risk? The financial section of your business plan needs to be extremely strong. In this excerpt, a young couple talk to a banker about buying a new business. Get the link to watch this now.
Business Planning Video Excerpt 3 – Protecting yourself
Another consideration worth thinking about is how you protect yourself, your business, your products and the way you ‘do things’ from being imitated by others. When you become successful, this intellectual property will be worth a lot of money so it’s diligent to cover this off in your business plan. Register FREE to watch this video now.
