Start Your Business Plan - Now! (Summarised)

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Seminar given 12 September 2007.

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Start Your Business Plan - Now! (Summarised)

  1. 1. Start Your Business Plan - Now! Matthew Goldsbrough 12 September 2007
  2. 2. Why Are We Here?
  3. 3. What holds us back? I’m not looking for investment I don't know how I tried to write one, but real life took over I’ll write the plan when I’ve a bit more experience I’m not sure what my real objective is I’m too busy I might get it wrong I don’t need to write it down – it’s all in my head
  4. 4. Agenda <ul><li>What We Need a Plan To Do </li></ul><ul><li>How To Plan </li></ul><ul><li>How To Identify a Good Plan </li></ul><ul><li>Starting Your Plan </li></ul>
  5. 5. What Would We Do With It?
  6. 6. Crossing the Bridge <ul><li>As things are now </li></ul><ul><li>As things should be </li></ul><ul><li>Build the bridge – plan how to get from 1 to 2 </li></ul><ul><li>Manage the journey across the bridge </li></ul>
  7. 7. Real Life <ul><li>Manage the journey across the bridge </li></ul>
  8. 8. With a Business Plan, you can… <ul><li>Focus </li></ul><ul><li>Measure your progress </li></ul><ul><li>Communicate </li></ul><ul><li>Motivate </li></ul>
  9. 9. Who is the plan for? <ul><li>For current and future investors </li></ul><ul><li>For your management team </li></ul><ul><li>For your employees </li></ul><ul><li>For YOU </li></ul>
  10. 10. What does having a business plan feel like? <ul><li>“ For the first few years, the plan was in my head, but I look back now and see that the progress we made was faster after I had committed the plan to paper and reviewed it with other people.” </li></ul>
  11. 11. What does having a business plan feel like?
  12. 12. The Planning Process “ Plans are useless; planning is everything” Eisenhower
  13. 13. Who is the plan for? <ul><li>For current and future investors </li></ul><ul><li>For your fellow managers </li></ul><ul><li>For your employees </li></ul><ul><li>For your board </li></ul><ul><li>For YOU </li></ul><ul><li>What do these stakeholders need? </li></ul><ul><li>Can there be only one version of your plan? </li></ul>
  14. 14. Four Stage Review http://www.goldsbrough.biz/techniques
  15. 15. Four Stage Review http://www.goldsbrough.biz/techniques You can achieve anything you want in life if you have the courage to dream it, the intelligence to make a realistic plan, and the will to see that plan through to the end. Sidney Friedman
  16. 16. How to Start? <ul><li>Start with a short plan </li></ul><ul><ul><li>Maximum of two pages </li></ul></ul><ul><ul><li>A few bullet points is better than nothing </li></ul></ul><ul><ul><li>Can be more easily expanded with supporting detail than a long plan can be condensed </li></ul></ul><ul><li>Write the summary first … and then rewrite it at the end </li></ul><ul><li>Expand and revise as you can </li></ul><ul><li>Get help if you need it </li></ul>
  17. 17. Principles of Good Planning <ul><li>Focus </li></ul><ul><li>Realism </li></ul>
  18. 18. Where to Focus
  19. 19. Where is the HEART of your plan? <ul><li>Vision, Mission, Values </li></ul><ul><li>History </li></ul><ul><li>Management Biographies </li></ul><ul><li>Organisation </li></ul><ul><li>Products & Services </li></ul><ul><li>Economy </li></ul><ul><li>Market Analysis </li></ul><ul><li>Competitor Analysis </li></ul><ul><li>Competitive Advantages </li></ul><ul><li>Risk Analysis </li></ul><ul><li>Break-even Analysis </li></ul><ul><li>Sales Projections </li></ul><ul><li>Capital Spending </li></ul><ul><li>Operating Costs </li></ul><ul><li>Profit & Loss Account </li></ul><ul><li>Balance Sheet </li></ul><ul><li>Cash Flow </li></ul><ul><li>Funding Needs </li></ul><ul><li>Critical Success Factors </li></ul>
  20. 20. Key Elements <ul><li>Value Proposition </li></ul><ul><li>Cash Flow </li></ul><ul><li>Objectives </li></ul>
  21. 21. Value Proposition
  22. 22. Value Proposition <ul><li>A statement that summarises the customer segments you are targeting, and how you are differentiated from your competitors </li></ul><ul><li>“ Why should I buy this product (or service), and why now ?” </li></ul>
  23. 23. Value Proposition Template http://www.goldsbrough.biz/resources
  24. 24. For Example <ul><li>“ For a commuter who wants to eat breakfast on the train without mess, our Excello BrekkieBar product is a health food, which provides a completely nutritious and delicious breakfast that you can eat anywhere. </li></ul><ul><li>“ Unlike grain bars and breakfast cereals, BrekkieBar tastes like a full English cooked breakfast, but has no fat and no calories, and even the wrapper can be eaten, leaving no waste. </li></ul><ul><li>“ This is because of our unique combination of innovative use of genetically modified foods and bio-engineered plastic packaging, that we have already used to produce a leading product in this market - Excello BrandyMints - the all-in-one after-dinner treat.” </li></ul>
  25. 25. Cash Flow
  26. 26. Realistic Projection? Time Sales £ Costs
  27. 27. Realistic Projection? Time Sales £ Costs
  28. 28. Realistic Projection? Time Sales £ Costs
  29. 29. Setting Objectives
  30. 30. Setting objectives <ul><li>Imagine the objective </li></ul><ul><li>Articulate it </li></ul><ul><li>How? </li></ul><ul><ul><li>Smart Goals </li></ul></ul><ul><ul><li>Well-Defined Outcomes </li></ul></ul>
  31. 31. Smart Goals <ul><li>S pecific </li></ul><ul><li>M easurable </li></ul><ul><li>A ctivity Based </li></ul><ul><li>R ealistic </li></ul><ul><li>T ime Bound </li></ul>My business will achieve £100,000 more income in 2007 by selling maintenance contracts to one third of our customers by the end of June.
  32. 32. Well-Formed Outcomes <ul><li>Is the goal stated in the positive? </li></ul><ul><li>Is it self-initiated, maintained, and within my control? </li></ul><ul><li>Does it describe the evidence procedure? </li></ul><ul><li>Is the context clearly defined? </li></ul><ul><li>Does it identify the needed resources? </li></ul><ul><li>Have I evaluated whether it is ecological? (Fits within all aspects of my life) </li></ul><ul><li>Does it identify the first step I need to take? </li></ul>
  33. 33. Well-Formed Outcomes <ul><li>Is the goal stated in the positive? </li></ul><ul><li>Is it self-initiated, maintained, and within my control? </li></ul><ul><li>Does it describe the evidence procedure? </li></ul><ul><li>Is the context clearly defined? </li></ul><ul><li>Does it identify the needed resources? </li></ul><ul><li>Have I evaluated whether it is ecological? (Fits within all aspects of my life) </li></ul><ul><li>Does it identify the first step I need to take? </li></ul>I will increase sales by £100,000 in 2007 by leading the current sales team in selling maintenance contracts to our current customers. To be on track to achieve the target, we will have sold to one quarter of our customer base by the end of May, and one third by the end of September. I will have time to do this because the new accountant we’ve hired will take some tasks away from me. I will kick this off by holding a training course for the sales team before the end of January.
  34. 34. Visualising the Objective
  35. 35. Imagining the Objective Howard Scott H.J.Scott & Co.
  36. 36. Clear Goals <ul><li>Goals which are: </li></ul><ul><ul><li>Easy to understand </li></ul></ul><ul><ul><li>Can be measured </li></ul></ul><ul><ul><li>Meaningful to the stakeholders in the plan </li></ul></ul><ul><li>But take care: </li></ul><ul><ul><li>“ You can’t manage what you can’t measure” </li></ul></ul><ul><ul><li>versus… </li></ul></ul><ul><ul><li>“ Not everything that counts can be counted, and not everything that’s counted, counts” </li></ul></ul>
  37. 37. How Will You Excel?
  38. 38. Value: A Trade-Off Convenience Price Quality
  39. 39. Value Disciplines Product Organisation Customer Operational Excellence Product Leadership Customer Intimacy
  40. 40. Classify these Organisations Product Organisation Customer Operational Excellence Product Leadership Customer Intimacy Tesco Sony Government Starbucks BBC Amazon Sainsbury
  41. 41. Your Own Organisation <ul><li>What type of organisation are you now? </li></ul><ul><li>What do you need to be in the future? </li></ul>Product Organisation Customer
  42. 42. The Planning Process “ Plans are useless; planning is everything” Eisenhower
  43. 43. Four Stage Review http://www.goldsbrough.biz/techniques
  44. 44. The Plan Contents* <ul><li>Vision, Mission, Values </li></ul><ul><li>History </li></ul><ul><li>Management Biographies </li></ul><ul><li>Organisation </li></ul><ul><li>Products & Services </li></ul><ul><li>Economy </li></ul><ul><li>Market Analysis </li></ul><ul><li>Competitor Analysis </li></ul><ul><li>Competitive Advantages </li></ul><ul><li>Risk Analysis </li></ul><ul><li>Break-even Analysis </li></ul><ul><li>Sales Projections </li></ul><ul><li>Capital Spending </li></ul><ul><li>Operating Costs </li></ul><ul><li>Profit & Loss Account </li></ul><ul><li>Balance Sheet </li></ul><ul><li>Cash Flow </li></ul><ul><li>Funding Needs </li></ul><ul><li>Critical Success Factors </li></ul>* Suggested
  45. 45. How the Machine Works
  46. 46. Process Focused <ul><li>Describing end-to-end processes </li></ul><ul><li>Describing end results of coordinated actions </li></ul><ul><li>Avoiding isolated excellence </li></ul>
  47. 47. Planning Process <ul><li>Involve others in the planning </li></ul><ul><li>Get your plan reviewed </li></ul><ul><li>Repeat periodically </li></ul>
  48. 48. Executing the Plan “ No battle plan survives contact with the enemy ” Helmuth von Moltke
  49. 49. Real Life <ul><li>Manage the journey across the bridge </li></ul>
  50. 50. Four Stage Review http://www.goldsbrough.biz/techniques
  51. 51. Summary
  52. 52. Summary <ul><li>Running a business is about controlling change </li></ul><ul><ul><li>Change is a journey </li></ul></ul><ul><ul><li>Journeys need a map </li></ul></ul><ul><li>Good Planning </li></ul><ul><ul><li>Essential and continuous </li></ul></ul><ul><ul><li>Imagine the outcome </li></ul></ul><ul><ul><li>Define your value proposition </li></ul></ul><ul><ul><li>Rigorously test your objectives </li></ul></ul>
  53. 53. Lastly… “ All men dream: but not equally. Those who dream by night in the dusty recesses of their minds wake in the day to find that it was vanity: but the dreamers of the day are dangerous men, for they may act their dreams with open eyes, to make it possible.” T.E. Lawrence
  54. 54. About Goldsbrough Consulting <ul><li>The owners and senior managers of small to medium sized businesses—from a wide variety of sectors—rely on our Strategic Marketing and Business Planning advice. We help our clients to become much more effective at marketing their products and services. With our support, they achieve challenging targets for growth and profitability, despite having limited time, budget and marketing capacity. </li></ul><ul><li>We take a more strategic approach to our clients’ marketing because we have proved—time and again—that establishing their fundamental value proposition, based on thorough analysis, and ensuring that it can be communicated effectively in marketing programmes, is the foundation of real success. </li></ul><ul><li>Our ongoing marketing support kick-starts marketing programmes, to open up new customers and markets, launch new offerings, and rescue under-performing products or services. </li></ul><ul><li>Matthew Goldsbrough founded the company in 2003, having held vice-presidential roles in marketing and business development with software companies in Europe and the USA, as well as earlier roles managing professional services and software development. </li></ul>
  55. 55. Still not sure where to start? <ul><li>20 minutes telephone advice on your business planning </li></ul><ul><ul><li>No charge </li></ul></ul><ul><ul><li>No obligation </li></ul></ul><ul><li>01298 812402 </li></ul><ul><li>www.goldsbrough.biz </li></ul>

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