Many people end up owning and operating their own small business almost by accident. Take, for example, many tradespeople. They will often go through many years’ training in an apprenticeship, work for another business in the same trade and then decide that they can do this for themselves.
What are the motivations for this course of action?
- Money – if I do this myself, I can make all the money instead of just earning a wage
- Quality – many people believe, rightly or wrongly that they can do things “better” than their boss
- Freedom – the ability to manage one’s own time and not be tied into someone else’s time schedule
In all our years of experience, we have seen many instances of these types of businesses which have been extremely successful. However, there are many instances where such businesses have either failed very quickly or continue to struggle. Why is this?
- inadequate capital – far too many businesses try to get off the ground without adequate funds
- lack of business training – new business owners are simply unprepared for the onslaught of tasks which need to be completed other than simply earning money
- employment issues – the traps for unwary business owners in employing staff are varied and many
Some businesses can pull themsleves out of this type of malaise with a minimal amount of formal planning. This is where the preparation of a business plan can help. Whether you are a new business just starting out or an established business looking for new direction, a business plan will ensure that you think about what you are going to do before you do it, work out where you are going to go and how you are going to get there and establish whether or not you make any money as a result.
What is a Business Plan?
The traditional image of a business plan is of a lengthy document containing vast chapters of research information, marketing analysis and pages and pages of numbers which may or may not have been drawn out of a hat. In reality, a business plan need not be any of these things. What it MUST be however is:
- A clear statement of goals an objectives, both near and longer term
- An organised statement of how the business is going to achieve these goals and objectives, starting from where it is now
- An statement of how the business (and, more importantly, the business owner) will be financially better placed as a result of this plan
- A statement detailing a timeline to achieve these objectives
It is important to remember that any business plan must remain a working, living and, by definition an unfinished document. What is the right thing to say today may well not be the right thing next week, next month or next year!
A Business Plan – Key Components
The key elements of a business plan include:
- Introduction/Pre-planning
- Statutory and Compliance
- Review of Current Operations
- Review of Current Financial Performance
- SWOT and PEST Analysis
- Wish List
- Service Offerings
- Marketing Plan
- Operational Plan
- Financial Plan
- Implementation Plan
IMPORTANT NOTE: A business plan is a plan devised by the owner of the business to evaluate how their business is going to move forwards. It is NOT a document which you simply pay somebody else to provide for you. If you do not take ownership of the process, you will not feel it belongs to you and be less inclined to see the project through to a conclusion.
We have attached a business planning checklist which we would be happy for you to complete and return to us. On receipt, we will contact you to arrange a no obligation one hour consultation at no cost to you. (Terms and Conditions apply)
Attach business planning checklist (pdf)