Business Planning Joan Heaney Tel: 087 9570045 Email: adopthr@eircom.net Adopt HR Human Resource Consultancy
What we will cover <ul><li>Reason why we should write a BP </li></ul><ul><li>What is the purpose of BP? </li></ul><ul><li>...
Reasons why we don’t… <ul><li>‘ Don’t have enough time to plan.’ </li></ul><ul><li>‘ I’m too busy getting things done.’ </...
Why you should write a Business Plan before you do anything else in your business?
Reasons why we should…
<ul><li>Firm up ideas – define what you intend to do & why </li></ul><ul><li>Know where you are and where you are going </...
<ul><li>‘ Would you tell me please, which way I ought to go from here?’ </li></ul><ul><li>‘ That depends a good deal on wh...
Which way I ought to go from here Year 1 - 2 Year 3 - 4 Year 5… Getting established, finding and keeping customers; develo...
So what should it do?
Steps to a business plan What are you planning? Define external market conditions, competition and market positioning Defi...
<ul><li>Describe  the business  </li></ul><ul><li>Examine the market and marketplace for the goods or services you will pr...
What should it contain?
<ul><li>Executive Summary </li></ul><ul><li>Description of your Company </li></ul><ul><li>Analysis of the Market </li></ul...
Executive Summary <ul><li>Most important Section </li></ul><ul><li>Create instant excitement and impact </li></ul><ul><li>...
Description of Your Company <ul><li>What is your Vision for your business? </li></ul><ul><ul><li>What are you creating?  <...
Description of Your Company <ul><li>What are your overall Business Objectives </li></ul><ul><ul><li>What are your most imp...
Description of Your Company <ul><li>What are your business strategies? </li></ul><ul><ul><li>How are you going to build yo...
Create your Vision & Mission
Market Analysis <ul><li>This section covers market research and competitor analysis.  </li></ul><ul><li>Never assume the r...
SWOT Analysis
Marketing & Sales Strategy <ul><li>A summary of your market position & goals </li></ul><ul><li>Your market objectives </li...
Research & Development <ul><li>Future development of your product or service, i.e., changes to meet future market demands,...
Staffing & Operations <ul><li>Structure of your company </li></ul><ul><li>Org chart </li></ul><ul><li>Staffing – hiring pl...
Financial Projections <ul><li>Key Assumptions </li></ul><ul><li>What is the total startup capital you will need to launch ...
Sales Pipeline <ul><li>Projected sales </li></ul><ul><ul><li>Who from? </li></ul></ul><ul><ul><li>What size? </li></ul></u...
Funding Requirements <ul><li>Total funding requirements  </li></ul><ul><li>How those are to be provided </li></ul><ul><li>...
Planning is a Process Plan Results Follow Up Actions Simple Specific Realistic Complete
Create an Action Plan <ul><li>Create an action plan by answering: </li></ul><ul><ul><ul><li>What are the specific action i...
General Rules <ul><li>Make it an interesting read! </li></ul><ul><ul><li>Bullet points </li></ul></ul><ul><ul><li>Balance ...
Do’s <ul><li>Use a business plan to set concrete goals, responsibilities, and deadlines to guide your business.  </li></ul...
Don’ts <ul><li>Don’t use a business plan to show how much you know about your business.  </li></ul><ul><li>Don’t let it ga...
<ul><li>‘ Plans are useless but planning is invaluable’ </li></ul><ul><li>Dwight Eisenhower, 34 th  President USA </li></u...
So do you really need a business plan?
<ul><li>Survival of first five years is closely related to the amount of planning carried out. </li></ul><ul><li>Research ...
Thank You for Listening Any Questions?
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Business planning jh oct 11 ProfitNet

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Profit Net Business Plan presentation Oct 11 2011

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  • A business plan now can save time and stress later. Too many businesses make business plans only when they have to. Unless a bank or investors want to look at a business plan, there isn’t likely to be a plan written. The busier you are, the more you need to plan. If you are always putting out fires, you should build fire breaks or a sprinkler system. You can lose the whole forest for too much attention to the individual trees.
  • Helps you understand the things that support you and the things that stand in your way
  • This exercise provides a quick and painless start to the business planning process by asking you a series of questions about your business, your goals and your future plans. The end result is a streamlined and brief business plan that you can use as-is or as a starting point for a more traditional business plan. Time Required: 2-3 Hours
  • The executive summary introduces your business strategy and probably is the most important section for lending institutions. If you can&apos;t persuade a loan officer in the first two or three pages that you&apos;ve got a viable business proposal, you&apos;re going to leave empty-handed. Important as a communication tool for employees and potential customers who need to understand -- and get behind -- your ideas.
  • Objectives of the business into the future Objectives of the Business Plan;
  • You must show that you have done the market research to justify the projections made in your business plan. It must demonstrate that there is a viable market and that you can beat the competition in the market for sales.
  • The plan depends on the human elements around it, particularly the process of commitment and involvement A business plan will be hard to implement unless it is simple, specific, realistic and complete. Even if it is all these things, a good plan will need someone to follow up and check on it.
  • Going back to the original question
  • Business planning jh oct 11 ProfitNet

    1. 1. Business Planning Joan Heaney Tel: 087 9570045 Email: adopthr@eircom.net Adopt HR Human Resource Consultancy
    2. 2. What we will cover <ul><li>Reason why we should write a BP </li></ul><ul><li>What is the purpose of BP? </li></ul><ul><li>What should it contain? </li></ul><ul><li>Some general rules </li></ul><ul><li>Do’s & Don’ts </li></ul><ul><li>Along the way a little bit of Action Learning… </li></ul>
    3. 3. Reasons why we don’t… <ul><li>‘ Don’t have enough time to plan.’ </li></ul><ul><li>‘ I’m too busy getting things done.’ </li></ul><ul><li>‘ I don’t need one, I know what I’m doing.’ </li></ul><ul><li>‘ Where do I start?’ </li></ul><ul><li>‘ No plan, no failure!’ </li></ul>
    4. 4. Why you should write a Business Plan before you do anything else in your business?
    5. 5. Reasons why we should…
    6. 6. <ul><li>Firm up ideas – define what you intend to do & why </li></ul><ul><li>Know where you are and where you are going </li></ul><ul><li>Forecast financial requirements, particularly cash-flow </li></ul><ul><li>Helps you understand the things that support you and the things that stand in your way </li></ul><ul><li>Examine markets, competition, customers, suppliers, operations and staff requirements etc. </li></ul><ul><li>Route map for next 3-5 years </li></ul><ul><li>Can be a reality check - avoid costly pitfalls </li></ul><ul><li>Test viability & assess risk </li></ul><ul><li>Communicate with potential investors/grant agencies </li></ul><ul><li>Creates an Action Plan – translate the BP into a plan for implementation </li></ul><ul><li>Evaluation – what gets measured gets done! </li></ul>
    7. 7. <ul><li>‘ Would you tell me please, which way I ought to go from here?’ </li></ul><ul><li>‘ That depends a good deal on where you want to get too?’ said the cat </li></ul><ul><li>Lewis Carroll – ‘Alice in Wonderland’ </li></ul>
    8. 8. Which way I ought to go from here Year 1 - 2 Year 3 - 4 Year 5… Getting established, finding and keeping customers; developing products and services. Consolidation – finding and keeping competent staff, delegating, controlling the business Attracting investors, diversifying, competing with much bigger firms in the market. It’s a different market…
    9. 9. So what should it do?
    10. 10. Steps to a business plan What are you planning? Define external market conditions, competition and market positioning Define the current status of the business Project costs, revenues, cash flow Define your core objectives Refine the strategies into working plans Identify risks and opportunities Develop a strategy for limiting risks and exploiting opportunities Define your business activities. Develop a strategy for achieving the core objectives Final plans
    11. 11. <ul><li>Describe the business </li></ul><ul><li>Examine the market and marketplace for the goods or services you will produce and why there will be a demand for what you do </li></ul><ul><li>Explain how you will exploit the market identified and achieve sales </li></ul><ul><li>Show how your business will be organised , how it will be managed and by whom </li></ul><ul><li>Demonstrate how you will produce your goods or services </li></ul><ul><li>Set down the assumptions on which your financial projections will be based </li></ul><ul><li>Make your financial projections for income and expenditure, profit or loss and the worth of the enterprise. </li></ul>
    12. 12. What should it contain?
    13. 13. <ul><li>Executive Summary </li></ul><ul><li>Description of your Company </li></ul><ul><li>Analysis of the Market </li></ul><ul><li>Marketing & Sales Strategy </li></ul><ul><li>Research & Development </li></ul><ul><li>Staffing and Operations </li></ul><ul><li>Financial Projections </li></ul><ul><li>Sales Pipeline </li></ul><ul><li>Funding Requirements </li></ul><ul><li>Appendices </li></ul>
    14. 14. Executive Summary <ul><li>Most important Section </li></ul><ul><li>Create instant excitement and impact </li></ul><ul><li>Clearly spell out </li></ul><ul><ul><li>Company’s mission </li></ul></ul><ul><ul><li>Outline goals and objectives </li></ul></ul><ul><ul><li>Market opportunities you see in the company and the industry </li></ul></ul><ul><ul><li>How you will make money – how those opportunities will result in increased earnings and profits </li></ul></ul><ul><ul><li>You have a viable business </li></ul></ul><ul><li>2 to 3 pages </li></ul><ul><li>Should be written last! </li></ul>
    15. 15. Description of Your Company <ul><li>What is your Vision for your business? </li></ul><ul><ul><li>What are you creating? </li></ul></ul><ul><ul><li>What will your business look like in 1/3/5 years? </li></ul></ul><ul><li>What is your Mission ? </li></ul><ul><ul><li>Why are you starting this business? </li></ul></ul><ul><ul><li>What does the business do / intend to do? </li></ul></ul>
    16. 16. Description of Your Company <ul><li>What are your overall Business Objectives </li></ul><ul><ul><li>What are your most important business goals? </li></ul></ul><ul><ul><ul><ul><li>To achieve a profitability of 5 % return on sales by year 1. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>To achieve a 8 % share of the identified market by the end of year 2. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>To secure ISO 9000 accreditation in the short term. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Medium Term - to buy its own premises. </li></ul></ul></ul></ul><ul><ul><li>Are your business goals considered SMART goals? </li></ul></ul><ul><ul><li>How will you measure success in achieving your goals? </li></ul></ul>
    17. 17. Description of Your Company <ul><li>What are your business strategies? </li></ul><ul><ul><li>How are you going to build your business? </li></ul></ul><ul><ul><li>How fast do you think it will grow? </li></ul></ul><ul><ul><li>What will you sell? (Products & Services) </li></ul></ul><ul><ul><li>Who will be your primary customers? </li></ul></ul><ul><ul><li>What is your unique selling proposition? </li></ul></ul><ul><ul><li>Long Term Aims of the Business </li></ul></ul>
    18. 18. Create your Vision & Mission
    19. 19. Market Analysis <ul><li>This section covers market research and competitor analysis. </li></ul><ul><li>Never assume the reader knows this information </li></ul><ul><li>Size, growth and significance of your industry, as well as your specific niche in the marketplace </li></ul><ul><li>Authenticate with research and recognised publications </li></ul>
    20. 20. SWOT Analysis
    21. 21. Marketing & Sales Strategy <ul><li>A summary of your market position & goals </li></ul><ul><li>Your market objectives </li></ul><ul><li>Your target markets </li></ul><ul><li>The percentage of the market you intend to target (be realistic) </li></ul><ul><li>A strategy for each segment of the market </li></ul><ul><li>Marketing expenses & resources </li></ul><ul><li>Marketing channels </li></ul>
    22. 22. Research & Development <ul><li>Future development of your product or service, i.e., changes to meet future market demands, adaptations to international markets, or upgrades. </li></ul><ul><li>Plans for new products or services to add to the range. </li></ul><ul><li>IP, Patents, Copyrights, Brands </li></ul>
    23. 23. Staffing & Operations <ul><li>Structure of your company </li></ul><ul><li>Org chart </li></ul><ul><li>Staffing – hiring plans next 3 – 5 years </li></ul><ul><li>Physical Requirements </li></ul><ul><ul><li>Office/facility requirements </li></ul></ul><ul><ul><li>Equipment/manufacturing needs & capabilities </li></ul></ul><ul><ul><li>Infrastructure </li></ul></ul><ul><ul><li>Communications facilities </li></ul></ul><ul><ul><li>Costs involved </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul>
    24. 24. Financial Projections <ul><li>Key Assumptions </li></ul><ul><li>What is the total startup capital you will need to launch your business? </li></ul><ul><li>What do you estimate your business's ongoing monthly expenses will be? </li></ul><ul><li>What do you anticipate your business's ongoing monthly income will be? </li></ul><ul><li>Profit and Loss Accounts </li></ul><ul><li>Balance Sheets </li></ul><ul><li>Cashflow </li></ul>
    25. 25. Sales Pipeline <ul><li>Projected sales </li></ul><ul><ul><li>Who from? </li></ul></ul><ul><ul><li>What size? </li></ul></ul><ul><ul><li>When? </li></ul></ul><ul><ul><li>Likelihood of getting sale </li></ul></ul>
    26. 26. Funding Requirements <ul><li>Total funding requirements </li></ul><ul><li>How those are to be provided </li></ul><ul><li>Investment already received </li></ul><ul><li>Investment sought </li></ul><ul><li>Approximate breakdown of how they will be spent. </li></ul>
    27. 27. Planning is a Process Plan Results Follow Up Actions Simple Specific Realistic Complete
    28. 28. Create an Action Plan <ul><li>Create an action plan by answering: </li></ul><ul><ul><ul><li>What are the specific action items and tasks you need to complete now? </li></ul></ul></ul><ul><ul><ul><li>What are your future milestones? </li></ul></ul></ul><ul><ul><ul><li>What will need to be accomplished by those milestones in order to meet your objectives? </li></ul></ul></ul>
    29. 29. General Rules <ul><li>Make it an interesting read! </li></ul><ul><ul><li>Bullet points </li></ul></ul><ul><ul><li>Balance creativity while still getting your point across </li></ul></ul><ul><ul><li>Use short (1-3 sentence) paragraphs </li></ul></ul><ul><ul><li>Be careful with using industry jargon </li></ul></ul><ul><li>Audience: Who is it meant for? </li></ul><ul><li>Write with objectivity </li></ul><ul><ul><li>Consider using the third-person </li></ul></ul><ul><li>Focus more on initial future (1-2 years), less on later years </li></ul>
    30. 30. Do’s <ul><li>Use a business plan to set concrete goals, responsibilities, and deadlines to guide your business. </li></ul><ul><li>A good business plan assigns tasks to people or departments and sets milestones and deadlines for tracking implementation. </li></ul><ul><li>A practical business plan includes 10 parts implementation for every one part strategy. </li></ul><ul><li>As part of the implementation of a business plan, it should provide a forum for regular review and course corrections. </li></ul><ul><li>Good business plans are practical. </li></ul>
    31. 31. Don’ts <ul><li>Don’t use a business plan to show how much you know about your business. </li></ul><ul><li>Don’t let it gather dust… </li></ul>
    32. 32. <ul><li>‘ Plans are useless but planning is invaluable’ </li></ul><ul><li>Dwight Eisenhower, 34 th President USA </li></ul><ul><li>‘ Even a great plan is wasted if nobody follows it.’ </li></ul><ul><li>Anon </li></ul><ul><li>‘ You can't overestimate the need to plan and prepare. In most of the mistakes I've made, there has been this common theme of inadequate planning beforehand. You really can't over-prepare in business!’ </li></ul><ul><li>Chris Corrigan, Australian Business Man </li></ul><ul><li>‘ A clear vision, backed by definite plans, gives you a tremendous feeling of confidence and personal power.’ </li></ul><ul><li>Brian Tracy, Motivational Coach </li></ul>
    33. 33. So do you really need a business plan?
    34. 34. <ul><li>Survival of first five years is closely related to the amount of planning carried out. </li></ul><ul><li>Research shows an increase in survival chances of 3% for every 1 day of planning with a plateau after 14 days. </li></ul><ul><li>Good business plans help: a fully detailed plan is 15 times more likely to receive funding. </li></ul><ul><li>You may still be able to build a successful business without a plan, but it is most certainly easier to do with a well-constructed business plan in your hands </li></ul>
    35. 35. Thank You for Listening Any Questions?
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