Gavin D. J. Harper
www.gavindjharper.co.uk
Presentation at:
Institut Supérieur de Commerce International
Dunkerque, France
March 2009

 Business
plans are used for a number of
purposes –
Fund raising from:

Banks

Venture Capital

Private Finance

Internal clarification of business goals

 Businessplans are not a static document that
you write at the beginning of starting a
business – they are DYNAMIC.
Change them as the business environment and

your knowledge evolves.

In developing your business

plan, you will be developing
„entrepreneurial skills‟.
 Entrepreneurs come from a
diverse range of backgrounds
and integrate and synthesise
a wide range of skills.
 As a prospective
entrepreneur, you will have to
get used to wearing “lots of
hats”.

 If your business “doesn‟t work on paper” and
the figures don‟t add up – it has less chance
of working in real life. No…. I regret
nothing… I took the
It‟s better to waste a time to do a

business plan.
week writing a
business plan than
wasting a year (and
lots of cash) trying to
start up a venture
that is destined to
fail.

A business plan defines what your businesses
objectives are.
“Mission Statement”

“Values / Ethos Clarification”

 Are your objectives realistic?
A business plan makes them “transparent”

 How are you going to get there?
Roadmap for your business.


Any great idea needs firm foundations.
By spending the time writing a business plan,
you are building a firm foundation on which
to develop your business.
“A successful man is one who can lay a
firm foundation with the bricks others
have thrown at him.”
David Brinkley
“Confidence is the foundation for all
business relations. The degree of
confidence a man has in others, and the
degree of confidence others have in
him, determines a man's standing in the
commercial and industrial world.”
William J. H. Boetcker

 Business
plans help get “Everyone on the
same page” – they provide a central vision
to which everyone in the business
subscribes.
The more people you have to
co-ordinate, the more
important this becomes.

 No two businesses are the same.
 No two business plans are the same.
It is ok for business plans to vary considerably

depending on the type and style of business.
Generic business plans are available for differetn

“types” of business, which you can customise for
your own ends.
 We are now going to look at a very „generic‟
type of business plan, which provides the
basic elements of structure for your plan.

 Outlines what you are looking to achieve.
 How are you going to do it with the resources
available.
 Keep it short, keep it concise and make
EVERY WORD COUNT.
 It is the written equivalent to your “Elevator
Pitch”.
 If you can‟t explain what you are doing in a
minute, then you will lose your readers
attention.

 Who do you anticipate selling your product or
service to?
 What „sort of people‟ are they?
 Where do they live?
 How many of them are there?
 What range of ages are your customers?
 What is their spending power?

 Know everything about your enemy.
 What are their:
Prices

Strengths

Weaknesses

 How does your business differ from theirs?
 What are you going to do better than them?
 How will you steal their business?

 Who are your suppliers and how will you rely
on them?
 Anyspecial requirements for delivery that
are specific to your business? E.g./
“Cold Chain” for Food-Service

“Just In Time” for Automotive Parts


 What is your sales channel?
 How are you going to reach your customers?
 Do you have the funds to market your
product to your consumers?
 Innovative marketing models?
Pyramid Selling

e-Business

Mail Order


 How many people will you need to run your
business?
 Who are your “key staff”?
 What specialist skills are required to produce
and deliver your product or service?
Are there enough of these skilled people in your

area – if not where will you recruit them from?
Is there a „premium‟ to be paid for their skills?

What is the labour market like in your area?

 Do you need to provide training?
 Can you “outsource” where you can‟t find
skills locally?

 What are the processes you will be using in
your business?
 Do these processes require specialist
equipment?
Capital Investment in

Tooling

Infrastructure


 Forecasts for the next three – five years.
Cash Flow

Balance Sheet

Profit and Loss Account

 Howwill the proceeds of your funds be
spent?
Reinvestment in the business?

Dividends to shareholders?

Remuneration for founders?


 Whatsort of risks is your business likely to
encounter?
Turbulent marketplace?

Operational Risks?

Staffing Risks?

Financing Risks?

 THINK GREEN:
Rising energy prices?

Resource scarcity?


 What is your company‟s ethical position?
Sustainability

Social

Economic

Environmental

 How will your company be a „responsible‟
business citizen?
Community engagement

Being “A Good Neighbour”


 Your
business plan is an ambassador for your
company.
If your business was a country, you wouldn‟t

dress your ambassador in a shabby, ill-fitting suit.
Ensure that the plan is laid-out professionally.

Print on good quality paper.

Give thought to the cover and binding of your

plan.
 With desktop-publishing and high quality
printing cheaper than ever, there is no
excuse for poor-quality presentation.

 Business
plan writing software (provides a
template for you to fill in)
Simple but…

Generic & Inflexible

 Download a “template” for your type of
business from the net
 Take a course in business planning (this one?)
 Hire a consultant
Sounds easy…But YOU know your business better


 Wecan learn a lot from the East about
developing sustainable businesses – some
businesses in Japan, have a 500 year business
plan. Including big names you might be
familiar with.
Toyota

Honda

Sony


 Ifyou haven‟t got a coherent and well
presented business plan, what else haven‟t
you done?
 Alarm bells for investors…
What does it say about this person‟s business?

Late tax returns?

Poor organisation?

Bad time management ?

 UNABLE TO RUN A BUSINESS!