Posts Tagged ‘What Is A Business Plan’

What is a Business Plan?

A business plan is basically a blue print to success. It sets out the parameters of how the business will operate, who the key players are, the plan going forward and any other relevant information that the author deems necessary should be included.

Why do I need a Business Plan?

You need a Business Plan for a number of reasons. First and foremost it is will focus your mind on where you are going or where you intend to go. It will dictate the speed of growth and will also allow your staff and other members of your team to share the vision.

Secondly, a Business Plan will be required if you intend to raise finance. If you intend obtaining a Business Loan or finance through other funding streams then again you will need a Business Plan. One thing is for certain, it is imperative that you construct a plan and amend/update it regularly.

Does the Business Plan change?

Yes it does. As your Business grows and changes, so should your Business Plan. It is wrong to assume that a Business Plan, once created, is filed away in a draw for 12 months. It should be kept in an easily accessible place and be update on a regular basis – for this reason alone it will focus your mind on where you are going.

What should the Business Plan contain?

This will depend on your own requirements but let’s take a look at some basic components:

SECTION 1 – Principle Business Details and Activities.

1. NAME OF BUSINESS

The name of your Business goes here.

2. BUSINESS ADDRESS

Company address goes here.

3. BUSINESS TELEPHONE CONTACTS

Your business telephone contacts go here.

4. DATE BUSINESS COMMENCED

This is the date that your business started or was registered with Companies house.

5. LEGAL STATUS

Whether you are a sole trader or a Limited company.

6. PRINCIPAL ACTIVITIES

Describe your main business activities. For example:

The development and creation of jewellery which is then sold via the internet worldwide.

SECTION 2 – Your key Business Objectives

SHORT TERM BUSINESS OBJECTIVES

Here you should include your short term vision. An example of this would be as follows:

To develop a sustainable business through the development of excellent products and customer service. We aim to develop 30 products within the first 12 months of trading, and achieve a turnover of £50,000.

MEDIUM TERM BUSINESS OBJECTIVES

A medium term business objective should be 3 to 5 years maximum. Include here where you want to be by this time and how you plan to get there. For example:

We aim to have created 100 products by 2008. The majority of these will be created by staff that will be employed as a result of the short term aim achievement.

Our turnover by this date will be £250,000 with a profit margin of 35%. Our sales will be predominantly achieved through internet advertising although we expect during this period to trial other methods such as National newspaper advertising.

LONG TERM BUSINESS OBJECTIVE

The long term business aim should be your ultimate goal. This can be any length of time from 5 years to 15 years. An example of this would be:

To have 50 different retail outlets strategically placed around the UK in areas of high demand. The company aims to exceed an annual turnover of £2,000,000 with a profit margin of 35%. The company will still continue to trade via the internet and it is expected that this will account for 40% of our business.

SECTION 3 – Key personnel

NAME AND POSITION

Insert name and position. Example:

Richard McMunn – Business Development Director

DOB

Insert date of birth

STATUS

Business Development Director and shareholder.

EXPERIENCE AND KNOWLEDGE OF THE INDUSTRY

Insert any experience and knowledge of the industry.

PREVIOUS EMPLOYMENT

Insert previous employment here.

QUALIFICATIONS

Insert qualifications here.

NAME

Repeat the above for all key personnel.

SECTION 4 – Premise details

In this section, indicate where the business is registered and where the business operates out of.

SECTION 5 – Equipment

Include all equipment that is owned by the company. Examples of these would be:

- Computers including software and hardware
- Vehicles
- Manufacturing equipment etc

SECTION 6 – Products and services

Indicate here what services and products are offered by the company.

SECTION 7 – Advertising

Here, include details of how the company advertises its products. This may either be in the form of internet advertising (Google, Yahoo or otherwise), Newspaper advertising (either National or local), other media avenues such as Admedia or any other form of advertising.

SECTION 8 – New products and services

Include here all of your predicted new products and services that will go on sale within the next 12 months.

SECTION 9 – Pricing

- How do you price your products?
- What is the profit margin of each product?

Include a breakdown of how much each product is on sale for and how much that product costs to produce.

SECTION 10 – Customers

What is your target audience and how do you know this? (i.e. ages 16 – 30). How to you reach your customers? How many visits does your website get each week?

SECTION 11 – Business strengths

Include here all of your business strengths.

SECTION 12 – Areas for Improvement

Here, include all of the areas you believe you can improve on. A business that has no areas to improve on is not telling the truth!

Be honest and look critically for ways in which you can improve or develop.

SECTION 13 – Business competition

Who are your major competitors? How do you monitor your performance against theirs? What are they doing that’s different or better than you?

SECTION 14 – Market predictions

How do you predict your market and adapt to the changing conditions? For example, during Christmas time sales may increase depending on the type of product you are selling or the service you provide. January through to April maybe slow in terms of sales due to the fact that people are less likely to spend after the expensive Christmas period.

Think about your business and how the market will vary from month to month. It is essential that you begin to track your daily sales/turnover right from the word go. After a year or two of trading, you will be able to predict your sales and adapt accordingly.

SECTION 15 – Sales and Promotions

What are your predicted sales and the reason why? Are you planning on running any promotions throughout the year?

SECTION 16 – Financial Information

How long have you been trading and what is your monthly/annual turnover?

How much have you spent on starting up your business? How did you finance this initial investment?

What is your predicted turnover for the next 12 months and why?

SECTION 17 – Business asset statement

What are the financial assets of the business including stock.

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Author: Richard McMunn
Article Source: EzineArticles.com
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If you have a corporation, or plan on opening a one, you should develop a business plan. A plan is an essential item for any corporation. There are many benefits that a properly developed plan can bring to your business. Below is a short discussion regarding what a plan is and how it can help your corporation.

What is a Business Plan?

A plan is a statement of a business’ goals. It also contains information regarding how the corporation will attain these goals. A proper business plan will integrate the corporations’ financial statements and projections as well as state the strengths and weaknesses of the corporation.

Getting Help Writing a Business Plan!

Chances are that you have little experience writing a plan. Fortunately, there are many resources to help you prepare an effective plan. You may want to consult your attorney. A corporation attorney has likely seen many business plans and also has probably helped many clients write plans. It is worth asking your attorney if they could provide assistance. Also, an accountant or a corporation consultant may be able to assist you in the process.

Since a janitorial business is a unique company, it would be wise to seek professionals that that experience writing a plan.

When to Create a Business Plan!

The best time to create a plan is when you are first forming the corporation. However, even if your corporation has been around for years, it is still beneficial to create a plan. Your corporation should always have goals and you should have a plan for achieving those goals, no matter what age your corporation is.

Also, it is important to remember that your corporation is always changing. As such, you may find that you have to change your plan. Your goals may change as other circumstances change. It is advisable that you review your plan each year and update it if necessary. Also, as you meet certain goals, you will want to create new goals to stretch your company and to help it grow.

Benefits of a Business Plan!

Of course, what is the point of creating a business plan if it does not provide any benefits? One of the main benefits is that a plan will memorialize your corporations’ goals. This will allow you to focus on your goals, which will help your company grow.

Another benefit is if your company needs financing. Often, when a small company needs financing, the lending institution will want to see the business plan. If the plan is effectively written, it is more likely that your company will receive the financing it needs. However, if your plan is poorly written, you may be denied, even if you have a good corporation.

Make a Plan Today!

Now that you are familiar with what a business plan is. You should go out and create your janitorial business plan today to help your company achieve its goals. Remember, franchising is the best kept secret of the 21st Century!

JD Files is an accomplished website developer and author. To learn more about janitorial-business-plan visit Janitorial Franchising for current articles and discussions.

Author: JD Files
Article Source: EzineArticles.com
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Are you currently running a cleaning service, or interested in starting up a laundromat business? One might think that running this business is as simple as wash, rinse, and dry; however, there is much more to it than that.

It’s a Business!
A laundromat is a business, just like any other. The goal of a business is to make a profit for its owner. However, if proper care is not given to implementing a plan, your finances may be what are eventually taken to the cleaners.

What is a Business Plan?
Before creating a business plan, one must know what a business plan is. Simply stated, a business plan is a statement of business goals, or the reasons why these business goals are attainable and the plan for achieving said goals. The plan may also contain background information about the specific business and/or information about the ownership.

Setting Goals!
Goals are at the heart of an effective plan. However, if the goals are not effectively set, the plan will be useless. The business goals must be realistic, attainable, measurable, and thoughtfully considered. All members of the laundromat ownership should be involved in the goal setting process. Key employees may also be able to provide insights that would be helpful to setting effective goals.

Benefits of a Business Plan!
The main benefit of an effective plan is to create a vision of where the business will go in the future and give the ownership a plan to get there. For example, if owners are seeking to double the revenue of a business, the plan will give detailed goals and a way to accomplish them that if followed will help the business flourish.

Additionally, a plan is almost always needed if the franchisee needs financing. Banks will rarely finance a small business, if the business does not have a well-written plan in place.

Help in Writing a Business Plan!
You may be saying to yourself, “I have no idea how to write a business plan.” This is okay. There are many professionals who can help you write a business plan. Accountants, attorneys, and financial consultants will all be happy to assist you in this process. If you do not already have an accountant or attorney, one of the best ways to find a good professional is to ask other small business owners who their accountant or attorney is, and ask if they are satisfied with their services. If so, these professionals may be able to help you with your plan.

Be Flexible!
After putting your business plan in writing, it is important to remember to be flexible. Business conditions will likely change from year to year, and you may need to adjust your goals and plans to meet these changes. It is a good idea to review your plan at least annually to see what changes need to be made.

JD Files is an accomplished website developer and author. To learn more about Laundromat Business Plan visit Laundromat-Franchising for current articles and discussions.

Author: JD Files
Article Source: EzineArticles.com
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A business venture is much different from a hobby in as much as your business involves substantial monetary investment and consumes a lot of your energy and time, and that is why it demands a different approach altogether. You can not afford to have a casual attitude with respect to your planning. Even if you are great at visualizing and know perfectly well where you want to take your business after a certain period of time, you should take the time to put your plan in black and white.

What is a business plan?

A business plan is a written document that includes what your plans are regarding your business and how you are going to realize them.

A Business Plan Includes

• The business goals
• The strategies to be employed to fulfill these objectives
• The potential risks that the business may face and what measures you would take to overcome them.
• The organizational structure of the business, clearly defining the responsibilities of each job holder
• The projected capital to finance the venture until it starts making revenues.

Three Primary Tenets of a Business Plan

1. The Basic Theme of the Business

• Which industry it belongs to
• The product or service you are going to sell
• The structural organization of the business
• Your strategy to meet your business goal

2. Market Analysis

• Description and analysis of the potential market
• Who makes your potential customers
• Probable reasons why should they accept your products.
• The quality you think could give you an edge over your competitors

3. Financial Section

• What makes up your income and accounts for the cash flow.
• Balance sheet
• Break-even analyses statements.

Why do you need it?

• A business plan is a must for an entry level entrepreneur-for it gives you the focus toward your business goal.
• This makes your efforts credible in the eyes of the investors or the financial institutions that are willing to finance your project. Your business plan is the proof of your understanding of the business to the investors and financers.
• It is also your blueprint for entrepreneurial success. A well chalked out business plan helps you to keep track of your business growth and provides guidelines for tackling the situations when it goes downward.

Tips on Building a Killer Business Plan

• Writing a sound business plan appears to be a daunting task at a first glance; but it becomes a piece of cake if you are armed with right set of tips.
• Weave your plan around your rivals’ weak points; but highlight your strengths. At the same time emphasize on your tricks to lure your customers.
• Include a detailed financial and marketing plan through the various stages of its life.
• Be clear about why you think your business will click from the start and how you will make it click.
• Devote exclusive time to chalk out the plan.

It is a good idea to take the expert help to create your business plan. Various software products are also available to help you initiate the planning process. It does not matter of you write your own business plan, get it written by a professional or buy a software to do the job for you-a sound business plan help you start and grow your business with confidence.

Tania Penwell provides information on business plans and other business topics for Business Savvy.

Author: Tania Penwell
Article Source: EzineArticles.com
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