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Articles about creating business plans tend to focus on plans for new businesses. However, while most new businesses require business plans, existing companies may require them as well. Sometimes this is to seek additional funding for an expansion of the business or to take advantage of an opportunity. Sometimes these are internal business plans used to focus the management and staff of the company on the same goal and to better inform everyone not only about what the company is, but about what it wants to be.

Similarities Between Business Plans For New and Existing Businesses

Both types of business plans should cover the customers the company will target and the competitors it faces. Both should detail the marketing and operations plans for the business. Both should delve into the financial targets for the business, on both the revenue and cost sides. This information presents either funders or employees with a clear idea of what the business intends to do.

Differences Between Plans For Existing and New Businesses

Whenever a plan must be presented to external funders for consideration it must be a formal document, carefully formatted and proofread thoroughly. However, for existing businesses preparing a business plan for internal use only, the level of formality can be relaxed a bit. While the format and order of a business plan should serve an internal or external plan well, there is not a requirement for an internal plan to stick to this structure.

Furthermore, a business plan for an existing business should include actual financial statements along with pro forma statements. This allows for pro forma statements to be based both on plans for future activities as well as reasonable extrapolations from past performance. New businesses have no financial records to pull from and can only take educated guesses based on the market they are entering.

By: Eric Powers

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Kansieo.com

Entrepreneurs, knowing that careful business planning can improve their chances for success, try to employ many of the corporate planning concepts and techniques used by large companies. The terminology itself can be confusing. Terms like strategies and action plans can be difficult to grasp for a businessperson involved in planning for the first time.

Action Plans Defined

Think of strategies as broad concepts of how you want to market your products or services, and action plans as the steps — often a sequence of steps in a defined order — required to implement the strategies. Every business owner makes action plans, even if he calls it something else such as a task list. A strategy of a restaurant might be to start marketing to an older demographic. The strategy was prompted by the owner noticing that many residents in the area fit this demographic and other restaurants are not catering to this group’s needs. An action plan would be to identify local or online publications that serve this older demographic group and develop advertisements to reach them, announcing special pricing if they dine before a certain time or on a certain day of the week. Another action plan would be to research their food preferences to see if any adjustments to the restaurant’s current menu need to be made in order to build customer loyalty within this group.

Assigns Responsibility

An aspect of generating action plans is determining who within the organization is responsible for the completion of each one. This is called assigning responsibility, and doing so better ensures all the tasks will be completed because someone is being held accountable. Defining a task as an assigned action plan implies it is important to complete. Managers know that if they complete the action plans assigned to them on time and to their supervisor’s satisfaction they are eligible for bonuses, increased salary and promotions.

Break Big Goals Down into Smaller Tasks

Imagine the lengthy sequence necessary to develop a new health care technology from the idea stage and bring it to the hospital marketplace. This means means thinking a complex project all the way through, determining every task big and small that must be completed. The plans contain a list of resources needed to complete them. These could be personnel time, capital, outside resources such as consultants, or assets such as equipment and facilities. Action plans for a large project can be mapped out in the form of a timeline showing when these resources will be needed along the path to completing the overall goal.

More Accurate Financial Forecasting

The complete list of plans in the company’s business plan shows everything that needs to be done to implement the company’s strategies, shows when each task needs to be allocated necessary resources, and calculates the cost of these resources. Thorough planning enables the company to prepare forecasts that present a more accurate estimate of the total costs for the company to conduct business and reach its goals. When actual results become available and the management team compares them to the budgeted amounts, it is less likely there will be negative expense variances due to tasks that were omitted.

By: Brian E. Hill

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business plan

Many new businesses go into their online ecommerce solution without creating a business plan, this is a major mistake and it is recommended that a business plan is formed before the business goes to the next step. Business plans are much more than a tedious task of getting your numbers and forecast in order to please the bank, they provide a vital insight of where you see your business progressing too. They will also bring up issues that perhaps the business has not thought about such as ecommerce software. These business plans are a critical first step, as well as an ongoing process for your ecommerce solution to succeed.

Most new businesses do not require a huge business plan such as 40-50 page document which some authorities advise, your new business requires the basics. An outline of these basics can be located at your local bank. Once you have these basics in your business plan you can always add sections later as your ecommerce solution becomes more advanced.

An online business requires certain equipment and software for operating a successful ecommerce solution. First of all your office requires the basics for active use of your ecommerce software and business. These are:

A computer, latest equipment has hardware which should at least include 500GB Hard Drive, 2GB Memory, iCore Duo Processor and Wireless Access Current Browser and eMail Software ecommerce Software Web Hosting with SSL Certificate Merchant Account Printer, Scanner, Fax – All in one Product Graphics Software Book Keeping Software FTP Software Google Account – Analytics, AdWords and Webmaster Tools

All of this equipment is a necessity for a successful ecommerce solution, include all of these needs into your business plan. There is funding available for business start-ups, especially for equipment, your local business support officer will have more information on the various funding options. Having up-to-date equipment is a business essential so by adding in the depreciation of the equipment into your plan ensures your assets are covered.

Your online business must complete a plan as this will be a guide of where your ecommerce solution will progress too in the short-term, and be amended to fit into the businesses long-term strategy. By including all necessary software and hardware the business will get an idea of costs and requirements to make the business a success. This information is also useful if the business intends to look for funding from banks or other sources.

By: Paul Makepeace

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To be successful in business, you need to conduct research and write your business plan. Attempting to start a business without a (well-composed) business plan through feasibility study is like a stranger going to an unfamiliar terrain without prior direction. Or better still, it is like a ship without a rudder (which controls its direction). It is in the light of this that the publication of this text entitled “Seven Step Business Plan”, written by Ms. Sheila Holm, a respected business-management expert is a welcome addition to business management literature.

Holm says before preparing this text, she had cycled and recycled clients to every bookstore to work through every business-planning book option. She adds that the clients purchased many books but still wanted more help. Holm discloses that to make it easy and affordable for more business owners to receive help, she started conducting a series of seminars to help owners and their management teams develop their business plans within a seven-step format based upon their dreams and goals.

Holm says the outline of the seminars developed rapidly into a seven-step, one-page form for quick and easy review while updating the business plan according to each change and adjustment to the goals.

The author educates that having a business plan adds value to the bottom line of a business. She adds that this text removes the learning-curve requirement, stressing that she knows you can increase the productivity and profitability of your business when you write your own business plan.

Holm says whether you have not yet written a plan, you have paid a consultant to write a plan, or you have proceeded with your business idea before writing a plan, you are absolutely in the majority. She submits that the truth however is that no other owner, director or team leader can articulate your business idea better than you can, stressing that planning is the key to success and profitability.

Structurally, this text is segmented into seven chapters. Chapter one is entitled “structure”. This author educates here that immediately in your own words, you should begin writing a statement about “how it is around here” according to how you are going to proceed with your business. Holm says many owners, even after they open the doors and operate their business, proceed without a clear statement about their business: how it will meet the needs of customers or how their business relates to the industry. The author adds that their dreams and goals are not in writing or in focus yet.

She stresses that clarity is helpful and has a positive impact upon your bottom line. This author adds that if you want more profit, then you need to gain clarity and if you want more clarity, then you need to schedule a little more time to walk and/or work through the planning process with her.

According to Holm, businesses develop in phases, so it is important to begin the planning process by identifying the part of one or more phases, or stages of development, of the business process your business represents. The author discloses that your business may be at a point where you want to add a phase to your existing plans or it may be an idea that you want to sell to someone else. You may want to purchase a developed product in order to market and distribute it, or you may be starting a business that will include all phases of the business process, expatiates Holm.

She says this stop is a major decision point since it will match your expertise and passion with the type of business you should pursue. In her words, “So, take a moment to get comfortable and get a firm picture in your head of yourself as the owner of the concept or product in one or more of the key phases of the business.” Holm also discusses idea; development; location; production; marketing and sales; distribution; and repairs or redevelopment in this chapter.

Chapter two is based on the subject matter of placement. Here, the author says the biggest mistake owners make is to think they have the most unusual business idea. Holm stresses that she is always concerned when a client says she should hurry up and develop a business plan before someone else steals the idea.

She reveals that ideas are out there and we do not have the market cornered on any idea. The author adds that only very few people with ideas will proceed and develop the ideas into a tangible entity, a business that will become part of the marketplace. She stresses that you are the exception to the rule.

The expert submits that now that you have set out to pursue your idea, it is important that you continue to follow and recognise the needs of the market that initially inspired you. She explains that if you understand the placement of your business within the industry, it is as important today as it will be that every day you are in business.

In Holm’s words, “Too many businesses forget to stay current regarding the trends within the industry and the business, market in general. The business process is a fluid process, so do not plan on making a decision regarding placement and then setting your business idea into a concrete base and forcing it to hold up to this statement for more than a few weeks. This is why I absolutely recommend reviewing the Seven Step Business Plan form each month.”

She illuminates that this phase of planning your business is a good time to meet and interview experts. On the aspect of customers, Holm says if you think everyone is your customer, take a second look at the facts about your business and what it will provide to the community. The author educates that defining your customers will assist you in the process of matching your business with the top competitors in your industry She adds that you have to know your competitors and how they are doing business within your industry.

“Begin with the title ‘Competitors’ on a page of your notepad. Add names to your list each time you identify a business in your industry. Expand your list and add all related businesses, increasing the scope and parameter of your search. This list will also help you gain an objective view of how the various businesses affect your business and your industry,” educates this expert.

Chapter three is on the concept of leadership. Holm says the most important statement you can make about your business is the statement you make about yourself and your involvement within each phase of the business. She adds that the statement you make about each member of your leadership team closely follows the importance of the statement you make about yourself.

According to this author, your leadership ability is critical as it is your ability to inspire others. Holm emphasises that leadership skills and abilities develop into the team strengths that are going to be evident in the business structure and help sell the business to each customer, vendor, employee, and business. “Remember, you are not able to be all things to people within the team. Each leader plays a specific role, and the team’s strengths and support in areas of weakness will define the overall strengths of the business,” guides the author.

The business management expert educates that when you detail your involvement, you should ensure that you align your statements with the phrases you have written to describe your business today and your plans for the future of this phase of the process. She adds that this statement will need to remain flexible in order to complement the plans for each aspect of the business as you continue to refine them.

In chapters four to seven, Holm analytically X-rays concepts such as purpose and highlights; vision and mission statements; operational and marketing plans; and financial and profit plans.

As regards stylistic assessment, the report card of this text is in blue. For instance, a lot of textual and graphical illustrations are used to reinforce the understanding of readers. The book is also very educative in that the chapters are further broken down into many sub-segments to achieve simplicity and easy comprehension on readers’ part. Holm includes one-page fill-in-the-blanks form representing a prototype for a typical business plan to guide readers. What’s more, the language is simple.

However, a technical error is noticed in the text. This is the omission of a hyphen in-between the first two words of the title of the text “Seven Step Business Plan”. Omission of the natural hyphen has grammatically deprived “Seven” and “Step” from becoming a nominal compound modifier to the phrase “Business Plan”. It is structurally supposed to be “Seven-Step Business Plan”. Without a hyphen, one will also be grammatically compelled to add an “S” to “Step” because of the cardinal word “Seven”.

On the whole, the text is a necessary companion for (prospective) entrepreneurs, business managers, etc. What else would you expect me to say if not that “it is highly recommended”? Get a copy of this book today and learn how to write a business plan so that you can achieve business can succeed.

By: Goke Ilesanmi

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The effective and successful small business owner works to a well thought through small business plan. This plan outlines and documents the key business objectives, benchmarks and performance measures that must be met.

A good small business plan is the result of having first conducted a thorough Strategy Formulation exercise. The ability to think strategically is one of the qualities of good leadership that all successful business owners and entrepreneurs should possess as part of their repertoire.

Strategy Formulation is a fundamental process that identifies the critical areas to be addressed and sets the priorities for the business across an agreed strategy period.

By focusing on the key areas that are identified as part of this process, the effective manager and business owner ensures laser-like focus in achieving results.

The small business plan integrates and aligns all the business activities around these critical areas and ensures that all effort is targeted, contained and understood by everyone in the business.

Having a plan is critical. It ensures that the right things get done, within the time frames allotted, and allows for the emergence of new initiatives when the plan is reviewed.

This review period should be in keeping with the rates of change that the business encounters around the factors experienced in both its internal and external environments.

Given that this is clearly understood, and that any gaps in capability have been identified, the small business plan is written with seven critical components in mind.

1. Determine Where You Are Now

This is simply a list that identifies and spells out where the business currently finds itself in relation to a particular critical issue. An example might be sales and marketing, for instance. The list, in bullet point form, spells out what is being done, at present, in relation to these activities. All critical issues facing the business should be analyzed, in turn.

2. Project Where You Want to Be Across the Time Frame

This is a second list that identifies where the business should be, in relation to the critical issue being addressed. Using the same example of sales and marketing as above, this list spells out what the “end picture” should look like in relation to these activities, across the business plan time frame.

3. Objectives

By analyzing the gaps between the two lists we have created, we are able to identify the main objectives that must be achieved to fulfill our vision across the agreed time frame. These gaps must be managed well as part of the business performance management process and the business development and risk management profile.

4. Tasks

Objectives must be broken down into a series of tasks and jobs that need to be completed to ensure that the given objective is met. These tasks must be specific, agreed, realistic, targeted and have accountabilities and responsibilities clearly assigned to them.

Tasks should be made into “bite-sized” pieces. Once this is done and each task is completed, it will unerringly lead to the objective being achieved, and everyone can see how their particular task and its completion fit into the bigger strategic picture.

5. Deadlines

All of the tasks assigned must have strict deadlines that are agreed and adhered to by all people involved. Keeping each other accountable is an important dimension in pushing for high performance in the effective and successful small business. Interrelated tasks must be identified, and critical paths for their completion established.

6. Accountabilities and Responsibilities

All the tasks must be assigned to people who take responsibility for getting them completed within the agreed time frames. The successful small business has developed a culture where the taking of personal responsibility for an assigned task is simply a given.

7. Reporting

All of the objectives and tasks spelled out in a business plan will quite likely have glitches arise as part of the implementation of the plan. Part of a successful business plan roll-out includes keeping a regular, updating reporting mechanism in place, so that potential problems can be addressed and emerging opportunities can be exploited. Therefore, follow-up and reporting must be conducted on a regular basis to ensure the success of the plan.

In Summary

Small business plans are nothing more than ordered common sense. A plan makes sure that the right things get done, in the right way and in the right sequence. Effective small business owners have a business plan, and everyone in their business knows exactly the part they play in ensuring its success.

By: Peter McLean

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People plan more for a vacation than they do to start a business. When you are looking to do your business plan, remember that the most important part of a business plan is the homework you need to do before you write it. That consists of researching, analyzing, and evaluating the business opportunity you’d like to pursue. Doing your homework will unveil the potential weaknesses and problem areas of your business idea. You need to do this before you hit it full force. The worst possible event is for you to waste your time and money on an idea that just won’t fly.

A business plan is not a guarantee of success, but you better believe it that not having one increases your chances of failing. Why? Because how can you get where you want to go if you don’t know where you’re going?

Everyone has heard that 20 percent of all new businesses will be around in 5 years. You definitely don’t want to be in the 80 percent that didn’t make it. Most businesses don’t have a business plan yet they know that it’s a good idea to have one. It’s like knowing eating vegetables is good for you but you don’t do it.

What a business plan does for you is it evaluates all the particulars of starting a company. It will reveal how much you can potentially make and on paper go through worst and best case scenarios. It’s crazy but most people plan more for a vacation than for a start-up opportunity! For example, it’s a huge mistake to quit your day job before you do a business plan to really see how feasible your business idea is at making you money.

It’s not that hard to do a business plan and if you use Business Plan software it can be pretty easy. You can go to our “In Business University” page and purchase software there. A business plan is a document that is about 40 to 50 pages long. It outlines your intentions and plans for running your business. As your company grows, it will serve as a guidebook and a reference manual for your management team to see if you are on track.

You will be sharing your business plan with many different audiences. Just hold back the confidential information like financial, new technology or client data when you have to share it. The common parts that are less-sensitive you will share like personnel, industry analyses, existing products, and services, and other company information that would normally appear in your marketing material.

What a business plan does is it summarizes the goals and purpose of your company and how you intend to reach those goals. It has sections on what you intend on selling, your industry, your competition, your place against the competition, marketing strategy, your staff, your business operations, equipment, and your financial resources and projections.

If you are looking to get financing, you will definitely need a sound business plan but here is a list of other people who would need to see it:

-Management or board of directors to understand the future direction of the company.
-Strategic partners or joint venture participants who are evaluating whether your overall direction is in alignment with theirs.

-Employees to understand the direction of the company and long-term opportunities for themselves. Granted you should only show them a few sections and not sensitive information.

By: Gail Krystal

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