There is no such thing as a standard business plan but there is one truth that can be applied to all – it must not be static.
Business planning is a key management tool that can be used for a variety of reasons: to raise finance, evaluate your business’ strengths and weaknesses and provide information on your business strategy and how this will be developed.
The background
Business planning must be seen as a blueprint to the future, one that will be adapted and reviewed on a regular basis. As a rule of thumb, you should revisit it on an annual basis, or more regularly if you are seeking to raise finance. What you may have prepared for at launch may not be case one, two, three or many years down the line and you have to respond to risks and opportunities as they present themselves.
The process
When reviewing business planning, consider the following. Have you launched any new products or services? Is the product you are now selling not proving to be as popular and are your customers asking you to supply a different one? Is your business growing faster than anticipated – will you need to hire more staff to meet this need, or raise more finance? Has your market changed in any way? For example, have you poached customers from your existing competitors or have new businesses entered into the marketplace?
What not to do
And what should be avoided? Don’t be tempted to put too much focus on finance elements in your plan – successful business planning is about ensuring the plan reflects your business’ overall strategy, including finance, sales, marketing and operational elements. Make sure your numbers add up, avoid assumptions and generalisations and the use of words such as “might” and “perhaps”. Uncertain terminology will have a negative, rather than positive effect on your business continuity planning. Don’t assume that new products and new customers will automatically mean more turnover. It’s far easier to sell and predict financial patterns if you sell more of your products to your existing customers.
Finally, get at least three other members of your team to review your strategic business plans.
