“Preparing Business Plans for Your Business” – Part 1
Business Plans are like maps for tourists – if you don’t know where you are going how are you going to know when you get there?
The purpose of a Business Plan is to take some time out from the normal day-to-day activities of a business and to sit down and think about specific issues that affect the future well-being of the business and agree on a strategy and to then write that strategy within the document that is known as the Business Plan.
It is important that there is follow up after The Business Plan has been written to ensure that the various strategies are implemented. Otherwise, the whole exercise has not been as beneficial for the business as it could have been. Admittedly, there will still be benefits for the persons who participated in the discussions relative to the establishment of strategies but those strategies have significantly more chances of being properly implemented if the strategy has been committed to writing and included within the Business Plan.
The format of information included in a Business Plan document varies according to the entity’s history and industry.
The following is some of the subject headings that could be included in a Business Plan for an established construction company.
- Executive Summary
This is a précis on the overall document to present a concise summary of what is included within the total Business Plan.
- Current Financial Position
- Very desirable that a summary of the current financial position is included in the Business Plan document.
- Vision For The Company
The vision should have been debated at the “Think Tank Meeting” and represents the collective “dreams” of the leadership team as to where you would like the company to be at some future date.
Was the decision that the company is going to seriously embark on “scaling up” into becoming a very big business?
Some organisations choose a “big hairy audacious goal” (BHAG*) to set a target that might be targeted 25 years in the future. This can be beneficial especially if that target is then broken down into realistic targets for two to three year periods.
*BHAG is a® of Jim Collins and Jerry Porras.
- Strengths Weaknesses Opportunities and Threats
This is beneficial if it is an accurate reflection on the current situation for the company.
It has always been beneficial to have some information relating to the history of the company – who the founders were – major highlights in the past etc.
This is a summary of the leadership team.
- Leadership Team Roles
A summary of the particular “portfolios” that are being performed by the individual leadership team members
- Leadership Team Professional Development
A summary of the agreed professional development activities to be undertaken by the leadership team members
A summary of the process for employment of team members, induction, handbook, workplace health and safety, policies that the company has implemented.
- Team Training and Licenses
Maintenance of a skills register and licenses held by individual team members.
A summary of the strategies that have been implemented or will be implemented relating to clients.
- Services Supplied
A summary of services that the company provides to customers.
- Research and Development
Identification of the company’s process for research and development activities so as to ensure that the company obtains value from these activities and is also able to claim ( if undertaking legitimate research and development activities) the Research And Development Incentive Rebate.
Commentary on the marketing strategies being implemented covering:
- Social Media
- Capability Statement
- Elevator Pitch
- Communication With Past Clients
- Customer Relationship Marketing (CRM)
- Public Relations
- Marketing Training
A list of the key suppliers and identification of any concerns relative to ongoing supplies from an individual supplier or problems with supplies from a particular country.
A SWOT (Strengths Weaknesses Opportunities and Threats) analysis on the key competitors that the company has so that an identification can be made of strategies that the company can utilise to successfully compete with the individual competitors.
- Risk Management
The leadership team of every company should periodically conduct a due diligence review of the activities that the company is involved in to determine a risk management strategy. This would include a review of:
- Insurance of company’s assets
- Insurance of public liability and contract performance
- Environmental matters
- Quality control
- Employee Agreements
- Contractor Agreements
- Personal Property Securities Register
- Natural disasters
- Emergency planning
- Corporate governance
- Research and development
- Workplace health and safety
To be continued next week……
Recording Recent Webinars/Posts
- “Preparing Business Plans for your Business” - Friday 24th September 2021 at 2.00pm. To register (click here).
Towers Business Development Services
Towers Business Development does not give taxation advice but offers consulting services for small/medium sized enterprises and accountancy businesses, including:
- Preparation of Business Plans
- Corporate Governance Mentoring
- Predictive Accounting – Budgets, Cash Flow Forecast, Projected Balance Sheets
- Virtual Chief Financial Officer Services
- Succession Planning
- Establishment of Research and Development Systems
- Business Review Meetings – Monthly or Quarterly
- Export Market Development Grant Applications – for the new system that applies to 2021/2022
- Mentoring/Training Company Directors
- Assistance with Due Diligence for Early Stage Innovation Company Status
- Assistance with Company Being Accredited as a Crowd Source Funding Equity Raising Company
- Assistance with Capital Raising Utilising Section 708 of the Corporations Act
- Assistance with the Preparation of an Application for an Accelerating Commercialisation Grant
- Government Grant Advice for SMEs
Want to know more about the services that Towers Business Development can supply to assist your business in its business growth? You are invited to visit the Towers Business Development website; or contact Peter Towers:
Have a great day!