Design and write a business plan

Design and write a business plan

 

Are you in the process of starting a new, small business in South Africa or would you like to throw around a few ideas that could relate to a newly-established business to see if you can improve or revise things? If so, this blog could be for you.

 

With very wide differences in histories, cultures, economies and types of businesses in almost every country, business plans differ greatly. The entrepreneurs to whom the present plan is directed could also have quite specific needs that differ from those of others. The following suggestions should therefore be seen as a broad guide to writing a business plan.

 With needs differing so much, the ideas given below should be adapted, modified, supplemented, amplified or altered to match the type of business for which the plan is required. In short, they provide only a starting point for further refinements, and should be read in conjunction with other approaches you might come across. You might like to replace items, add to or subtract from them, modify, adapt, or merge sections, rearrange components, or reverse the thinking to suit your needs.

 

A small business in operation

Executive summary

Write a brief overview of your proposed business. What is the vision? Explain in broad terms what products and services you will provide. What type of business is it? What will you sell, and/or how will you serve your clients or customers? How will your company provide and monitor quality and efficiency, and what gives you an edge over the opposition? Make it catchy and interesting. Keep it simple. Detail can follow.

Business objectives

What are your five or six main business objectives, and how do you intend to ensure that they are clear and achievable? How is ongoing quality to be ensured?  How have you created criteria (instruments for evaluation) from the objectives to ensure quality and effective operation? How will you exceed expectations?

Business concepts and methods used to achieve the objectives

How will your objectives be achieved in practice? Will your business be product-based, or relate to the provision of services? Is your business structured correctly within its appropriate legal framework? What buildings and staff will be needed? Also consider such practicalities as equipment, supply sources, labour issues and capital outlay.

 

Research

Has research been done into laws, regulations, constraints and rules that apply to the business? Has a plan of action been devised that provides a sequence of strategic activities to be completed? Will the plan of action ensure that all rules and regulations are complied with? Is the business registered with all necessary bodies? What precautions need to be taken to assure protection of the environment? What precautions need to be taken to comply with occupational health and safety laws?

Are your employment practices fair?

 

Products and services

Has research been done into markets and products or services? What is the specific range of products and/or services? How will you “package” them to make them most appealing? How will you ensure smooth delivery, storage and distribution, and after-sales services? How will patents be registered and protected, and how will you build a quality brand identity?

Marketing plan

Is there a sustainable market for your envisioned product? Have you researched it to ensure a clear picture? Who is (or are) the exact target(s)? What is the potential for growth? What trends are evident? Where are the outlets located geographically? Are seasonal strategies needed? What are the best channels for marketing? What is the structure of pricing? Who will do the marketing? What capacity does the competition have? How can you compete best?

 

SWOT analysis

What are your Company’s strengths and weaknesses, opportunities and threats?

 
Infrastructure and resources

What is needed in the short and long term, and what expansion of resources will be needed? Do you need premises, owned or rented, and what staff are required? What training and development is needed? What systems and controls will be needed, including contracts and operation manuals? How will good communication be ensured, with effective use of technology?

Budgets and financial plan

What budgets will be needed, and what financial resources are available? How are they to be best used? How will capital expenditure be financed? What financial procedures and rules are required to ensure optimal income, cash flow, financing and reserves? How will financial security be ensured, with correct, approved procedures in accordance with the business type? Will additional training be required?

Staff structure and organogram

What staffing is required? What resources are readily available to ensure sustainable operation? Who will do what duties? What further training is needed, especially where services are offered?

Environmental impact assessment

How will any impact on the environment be avoided or softened? What costs are likely to be incurred in achieving compliance?

Monitoring

Has a monitoring system been put in place to ensure that the achievement of objectives is monitored and reported, with a feedback and action loop??

Pre-opening checklist

Has a business plan been completed?

 

Is the company registered with the appropriate, legal authorities?

 

Is it fully compliant with their regulations?

 

Is the name acceptable?

 

Are brands and logos registered?

 

Is registration complete with the industry association?

 

Are venues and equipment in order?

 

Are staff roles and contracts in place?

 

Is there sufficient budgeted capital, and are bank accounts available?

 

Are budgetary and financial security controls in place?

 

Are standard working procedures written down and available to staff?

 

Has sufficient marketing been done?

 

Are product/quality quality checks in place?

 

Are tax requirements met?

 

Are telephones faxes and email services available?

 

Are documents, letterheads and stationery in order?

 As mentioned, the above general proposals and suggestions need to be amplified by further strategies related more specifically to your business. So, take what you can, but be aware that it provides generalities rather than specifics. Get advice from as many informed sources as you can; and do be thorough and meticulous.