| Creating a Business Plan
Whether you are starting a new business or running an existing one, creating a solid business plan is vital to improving your chances of success. For a new business
You need to know what chance there is of making a return on your investment. You will increase your prospects of obtaining finance from banks or potential investors if you can prove that you have weighed up the risks, have a product or service that people will want, and understand what the competition will be like. So in creating your plan you must deal with the critical issues that set you apart - your strengths, your weaknesses, the opportunity and the potential threats (SWOT analysis). Some of the key points that need answering: | " | How do you know your product/service is a good idea? | | " | Have you researched competitors and rival products? | | " | What makes your business different and likely to succeed? | | " | Have you considered all the needs and motivation of potential customers? | | " | How much expertise do you have in management and organisational skills? | | " | How much money will it take to set up, to staff it and to market it? | | " | How long will it take before you can start paying off the initial outlay? | | " | What problems are there likely to be - and how you will overcome them? | | " | What will you do if things don't go as well as you hoped? | | " | Have you allowed for the day-to-day operational issues such as recruitment, employee management, accounting procedures, taxation, health and safety, national insurance and so on? | Setting down all of these ideas is essential for the people to whom you will be presenting the plan but the process is just as important to you, because the more you know about the way ahead, the better organised you will be and the easier it will be to recognise and deal with challenges. For an existing business
If you are creating a plan for an existing business, what needs to be covered will depend on its purpose and objectives. If it involves a new project or diversification, then many of the above points will apply as for a new business. If it is to develop or improve the present state of the business, then it will be mainly a case of doing a reality check on what exists and setting out the case as to how to go forward. Some key points here would be: | " | Doing a thorough SWOT analysis on the business | | " | Reviewing the marketing plan . its effectiveness and whether any improvements are needed | | " | Reviewing personnel strategy . whether any new skills or training is required | | " | Examining operational procedures, suitability of premises . can any efficiencies be achieved? | | " | Analysing financial performance . what will it take to reduce costs and improve profitability? | | " | Examining contingency plans by doing an up to date risk assessment | |
