Your SlideShare is downloading. ×

Business Planning Templates

611
views

Published on


0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
611
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
36
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Business Planning Templates The Business System General Task Environment Environment Activity Activity Activity Activity Activity CSF CSF CA Activity Activity CSF CSF Activity Activity Activity Activity Department of State Development and Innovation
  • 2. CONTENTS SWOT Analysis....................................................................................................................................................................3 Business Planning Templates.........................................................................................................................4 Step 1: Complete Environmental Scan/Market Research...............................................................................5 Task Environment ..............................................................................................................................................................7 General Environment .........................................................................................................................................................8 Step 2: Develop Competitive Advantage.........................................................................................................9 Four Key Questions............................................................................................................................................................10 Our Competitive Advantage Is . . .......................................................................................................................................11 Step 3: Identify & Prioritise Critical Success Factors ...................................................................................12 Outline Critical Success Factors .......................................................................................................................................13 Prioritise & Refine Critical Success Factors.......................................................................................................................14 Step 4: Determine Basis For Growth.............................................................................................................15 Determine Basis For Growth . . .........................................................................................................................................16 Determine Growth Objectives.............................................................................................................................................17 Determine Profit Objectives................................................................................................................................................18 Step 5. Identify & Prioritise Key Change Activities.......................................................................................19 Step 6: Develop Action Plan .........................................................................................................................19 Step 7. Performance Evaluation/Benchmarking ..........................................................................................20 Step 8: Complete Financial Evaluation ........................................................................................................21
  • 3. SWOT Analysis INTERNAL ENVIRONMENT STRENGTHS WEAKNESSES OPPORTUNITIES THREATS EXTERNAL ENVIRONMENT Department of State Development and Innovation Planning for Success Page 3.
  • 4. Business Planning Templates The following templates are designed as a planning tool for use by business operators in the process of plan development for small to medium-sized businesses. The templates are designed for practical use by owners/managers in business development situations. The templates reflect a simple, logical and pragmatic approach to Strategic & Operational Planning. Planning is both a creative and analytical process. The templates are not designed to construct business plans for submission to financial institutions. (‘Plans’ for submission to financial institutions could more appropriately be termed ‘Business Cases’.) However, the outputs from this process could be translated for this purpose. Nor are the templates designed as a ‘recipe’ for business planning. Effective business planning requires experience and good judgement and thus, the templates should be used as a support tool and not as a definitive instruction. A thorough analysis of the business should always precede a business plan. It is therefore preferable that a full diagnosis be undertaken first. The design of the Business Planning Templates assumes that a diagnostic has been undertaken first this usually includes a S.W.O.T. Analysis (Strengths, Weaknesses, Opportunities and Threats). Upon completion professional advice is recommended for the application of the business planning process by business owners. Department of State Development and Innovation Planning for Success Page 4.
  • 5. Company Details & Business Information Business Name: Owner No. 1 Name: Owner No. 2 Name: No. of Locations: Locations: Main Location Address: Telephone: Facsimile: e-mail/web-site: Business Established: Under Current Owner Since: Industry: Major Goods/Services: Brief Business Description: Approx. Current Turnover: Approx. Current Profit (Before Tax): Approx. No. of Employees (Full Time Equivalent): Step 1: Complete Environmental Scan/Market Research Department of State Development and Innovation Planning for Success Page 5.
  • 6. It is important that the Competitive Advantage and the Critical The Task Environment comprises: Success Factors be tested against the present and future • Target Market (Customers & Potential Customers) environments of the business. • Competitors • Suppliers An environmental scan can be divided into two parts: • Strategic Allies • Task Environment, i.e. specific organisations or groups in • Regulators & Unions the immediate business environment that are likely to affect • Owners the business, and • General Environment, i.e. those non-specific forces The General Environment comprises such forces as: surrounding a business that might affect its activities. • International The business must deliver greater value to customers than • Economic its competitors or create comparable value at a lower cost, or do both. • Technological • Socio-cultural • Political • Legal. Department of State Development and Innovation Planning for Success Page 6.
  • 7. Task Environment List the key demands on the business from these environmental factors (consider present and future): Target Market (Customers & Potential Competitors: Suppliers: Customers): Strategic Allies: Regulators: Owners: (Government, Unions, Industry Associations, e.g. MTIA etc. ) Department of State Development and Innovation Planning for Success Page 7.
  • 8. General Environment List the key demands on the business from these environmental forces (consider present and future): International: Economic: Technological: Socio-Cultural: Political: Legal: Department of State Development and Innovation Planning for Success Page 8.
  • 9. Step 2: Develop Competitive Advantage The Competitive Advantage is the distinctive The Components of the Competitive Advantage are: competency of the business that is matched to its future • the type of Goods and/or Services to address customer needs, e.g. market opportunities. number, range • the Activities to address customer needs, e.g. design and/or build The Competitive Advantage must: and/or supply • be the core statement of what the business is about • the Customer Benefits, e.g. low cost, high quality, exclusive etc. • reflect the essence of the competitive strength of the The Competitive Advantage always incorporates a ‘Trade-Off’. business Trade-Offs create the need for choice and purposefully limit what a • preferably, but not necessarily, be unique company offers. • be assumed to change over time, i.e. it may be, but will A simple example of the Competitive Advantage of a sandwich not necessarily be, sustainable shop is: • be simple and clear • "to make & serve the highest quality gourmet sandwiches in the • influence & guide individual behaviour internal & external to the business now & in the future. local area to consistently exceed customer expectations". • (Trade-Off = price) Department of State Development and Innovation Planning for Success Page 9.
  • 10. Four Key Questions Answering the following four questions will help you to formulate the Competitive Advantage for your business: Why do customers buy from us? Why do customers buy from our competitors and not from us? Why do some potential customers not buy at all? What do we have to do to be successful in the future? Department of State Development and Innovation Planning for Success Page 10.
  • 11. Our Competitive Advantage Is . . . What is the Competitive Advantage of the business? Test it. Does it contain goods/services type, activities, customer benefits? Our Competitive Advantage is: The Trade-Off = Department of State Development and Innovation Planning for Success Page 11.
  • 12. Step 3: Identify & Prioritise Critical Success Factors Critical Success Factors (CSFs) are those features of the Examples of Critical Success Factors for the local sandwich business which must be done particularly well to ensure future shop could include: success and which are essential to the Competitive • Establish and maintain an exclusive relationship with a Advantage. baker to supply on a daily basis, 6 days per week, a range of speciality and exclusive breads baked according to proprietary recipes To determine the Critical Success Factors, consider aspects of: • Purchase an extensive range of high quality meats, cheeses, Inputs, such as: fruits & vegetables • resources that the business uses • Recruit and train: Conversion, such as:  happy, friendly people with the right attitude to the • people customer (‘the customer is always right’) • company-wide business processes & activities  highly efficient, creative people who enjoy making the best sandwiches for customers • decision-making structure Outputs, such as: • Encourage innovative product suggestions from customers and staff • characteristics of the goods and services, e.g. low cost • Charge a premium price but one which, together with the product and the service, ensures customer value-for-money • Promote, make and serve fresh, exclusive, attractive, tasty, well-presented sandwiches always. Department of State Development and Innovation Planning for Success Page 12.
  • 13. Outline Critical Success Factors Keep it simple, but make sure you identify them all: 1. 5. 2. 6. 3. 7. 4. 8. Department of State Development and Innovation Planning for Success Page 13.
  • 14. Prioritise & Refine Critical Success Factors Template 2B Use the following grid to help you to prioritise and refine the CSFs for the business. The closer to the upper right-hand corner, the higher the priority. Prioritise CSF’s High Value As Perceived By 1. 2. Customers 3. 4. 5. Low 6. Low High Ability To Differentiate From Competitors 7. 8. Department of State Development and Innovation Planning for Success Page 14.
  • 15. Step 4: Determine Basis For Growth The challenge for the business is to identify and develop growth opportunities with an acceptable balance of risk and return, consistent with its resources and capabilities. From the 4 strategic options for growth - market penetration, product expansion, market expansion and diversification - determine how the business will grow. Options For Growth Strategy: Examples of Each Growth Strategy: Risk Level of Growth Strategies: Present Products New Products Present Products New Products Present Products New Products Market Product Market Product Penetration Expansion Penetration: Expansion: Lowest Medium Present Markets Examples: Examples: Present Markets Present Markets •Expand customer base •Develop new product Selling Selling Present Products New Products •Attract competitors’ customers features •Develop quality variations Risk Risk Into Into •Concentrate resources •Expand range Present Markets Present Markets on most profitable •Develop totally customers & market new products Market Diversification: Market Expansion: Expansion Diversification Medium Highest New Markets New Markets Examples: New Markets Selling Examples: Selling Present Products New Products •Pursue new geographic markets •Combine product & market Risk Risk Into Into •Pusue new expansion initiatives New Markets New Markets market segments Department of State Development and Innovation Planning for Success Page 15.
  • 16. Determine Basis For Growth . . . Record the basis of future growth for the business and note any relevant points: Notes: Present Products New Products Present Markets New Markets Department of State Development and Innovation Planning for Success Page 16.
  • 17. Determine Growth Objectives Determine the Growth Objectives for each product and/or product group for the next 3 years (consistent with Basis For Growth - see Template 4): Product Now ( ) Year 1 ( ) Year 2 ( ) Year 3 ( ) / Group Growth Growth Growth Qty $/unit $ Qty $/unit $ Qty $/unit $ Qty $/unit $ % % % % % % # $ # $ # $ % % % % % % # $ # $ # $ % % % % % % # $ # $ # $ % % % % % % # $ # $ # $ % % % % % % # $ # $ # $ Department of State Development and Innovation Planning for Success Page 17.
  • 18. Determine Profit Objectives Determine the Profit Objectives for Gross Profit, for the next 3 years (consistent with Basis For Growth & Growth Objectives Profit Now ( ) Year 1 ( ) Year 2 ( ) Year 3 ( ) Measure Gross Profit % (GP/Sales) Gross Profit Expenses % Earnings before interest and tax Cost of Capital Economic return % on capital employed Department of State Development and Innovation Planning for Success Page 18.
  • 19. Step 5. Identify & Prioritise Key Change Activities Identify the Key Change Activities (those Activities which are crucial to the implementation of the plan and the achievement of the Business Objectives). Key Change Activities involve change and it is change that is planned for. They may involve the acquisition and/or devolvement of resources When all Key Change Activities have been identified, prioritise each by number. Key Change Activities Priority # • • • • • • • • • Step 6: Develop Action Plan Key Change Activities Date Date Resources Budget KPI Who's Start Finish (see Templ. Department of State Development and Innovation Planning for Success Page 19.
  • 20. Required 9B) Responsible? # 1: # 2: # 3: # 4: # 5: Step 7. Performance Evaluation/Benchmarking (Key Performance Indicators) for use in Template 9A above. (This list is not designed to be comprehensive, but is to be used as a guide only.) Accounting & Reporting • length of average reporting cycle Ordering & Purchasing • average order to delivery lead time • performance time to deadline • % rejections/time period Billing & Collecting • accounts receivable days Order Taking • no. of back orders/time period • % outstanding bad debts/time period • no. of cancelled orders/time period Department of State Development and Innovation Planning for Success Page 20.
  • 21. Creditor Payments • accounts payable days Planning & Budgeting • overall business performance to plan Customer Feedback • no. of guarantee claims/time period • performance to budget • no. customer complaints/time period Promotions • enquiry contacts per promotional activity Design & Development • no. of prototype rejections/time period Quoting/Pricing • % quote acceptance/time period • no. of prototype conversions/ time period • % quote rejects/time period • average prototype development lead time • conformance with formal price schedule General Management • business performance to growth & profit objectives Receiving & Warehousing • average order to delivery lead time • management & staff turnover/time period • % rejections/time period • management meetings/time period Staff Appraisal • appraisals/time period Goods/Services Conversion • average job lead time • actioning of appraisal outcomes/time period • % quality failure/time period Staff Exits • staff turnover • no. of guarantee claims/time period • costs/time period • % capacity utilisation • no. of system complaints/exit interview Goods/Services Delivery • average delivery lead time Staff Recruit. & Selection • staff turnover • no. of guarantee claims/time period • recruitment costs/time period Job Scheduling • average job lead time/time period Staff Development • training costs/time period • hours overtime/time period • training needs analysis Maintenance • costs per time period Stock Control • inventory turnover or days • % downtime/time period • % damaged and/or lost stock/overall stock holding • failures/time period Warranty Claims • % sales/time period Step 8: Complete Financial Evaluation Department of State Development and Innovation Planning for Success Page 21.
  • 22. You would review the Financials of the Business such as your- Profit & Loss Statements Balance Sheets. Department of State Development and Innovation Planning for Success Page 22.

×