Some Basics to Consider
The business plan will allow you to think out your basics and allow you to build your company daily without hesitation. Weather you are seeking financing, expansion, sales growth, investments there are basic considerations that you need for your future.
Considerations for the Plan
1. Define you needs and goals
1. Develop a strong management plan
2. Develop realistic sales forecasts & projections
3. Understand your market and the competitive advantages
4. Define marketing strategies
5. Develop a competitive pricing structure sales strategies
6. Research your competition
7. Know your ROI
8. Plan for five years
9. Update licensing, certification and insurances
10. Define alliances
Getting into Action
In today’s competitive market it’s important to build new strategies that define your marketing focus. All companies need to develop a Strategic Marketing Plan company, which includes the Internet and sales strategies in your planning. Invest in development of the company with marketing and you will grow. Marketing and planning will strengthen your business plans.
I am a strong believer of organically growing your sales first so you can enhance and expand with new sales. This allows your company to stand on its own two feet. The reason for this is bankers want to see growth and stability before they make a loan or for investors to provide you with equity. You may have a great idea but if you can’t sell it then how good is it to a bank or to an investor.
THE BUSINESS & MARKETING PLAN - BUSINESS PLAN OUTLINE
I am going to start you off with the first part of a plan. Developing a plan is like making a film. You create in ways that match the process best. Take the financials those are going to flow into all areas of your plan. So working with them at the beginning will allow you to drop them in the executive summary, marketing and sales areas with greater ease. The first and most important is understanding your service and product in context to the market. While your management team and leadership is your survival. Defining the team and positioning them is a most critical factor.
Below is an outline for a starting your business plan. Use this model as a guide when developing the business plan for your business. The elements in your plan share a common goal -“SUCCESS FOR THE COMPANY.”
Elements of a Business Plan
1. Cover sheet
2. Table of contents
3. Executive summary (Statement of purpose)
4. Offering memorandum
5. Table of contents
I. The Business
A. Description of business
B. Marketing
C. Competition
D. Operating procedures
E. Management
F. Business insurance
II. Financial Data
A. Loan applications
B. Capital equipment and supply list
C. Balance sheet
D.AR, AP’s, P&L’s
D. Breakeven analysis
E. Pro-forma income projections (profit & loss statements)
- Five-year summary
- Detail by month, first year
- Detail by quarters, second, third, fourth and fifth year
- Assumptions upon which projections were based
F. Pro-forma cash flow
- Follow guidelines for letter E.
III. Supporting Documents
- Tax returns of principals for last three years
- Personal financial statement (all banks have these forms)
- In the case of a franchised business, a copy of franchise contract and all supporting documents provided by the franchisor
- Copy of proposed lease or purchase agreement for building
- Copy of licenses and other legal documents
- Copy of resumes of all principals
- Copies of letters of intent from suppliers, etc.
Saturday, December 13, 2008
Thursday, September 11, 2008
The Pain Can Go Away!
For companies that have been in business for three or more years. The future of a sound business lies in good planning and increased sales results. In today’s market we need to plan to survive!
While you plan to survive and build revenues the leadership of the company must live up to those goals almost daily. The first step by management is to realize and accept business flaws. From a clear understanding of your flaws and with clear business goals your business can define its needs for growth. Goals for a marketing sales campaign, increasing advertising to support sales, building a strong sales force and projecting sound financial accountability are key steps for building and growing your company. These are absolutely necessary for competitive growth especially in an environment where downsizing and financial insecurity exists. This can heal and build your business and be a guiding light for future business.
The business and marketing plan allows me to prioritize and meet my goals and objectives regularly. My success is almost intuitive from the empirical existence of a plan. The plan is not a final document it is a plan so it continues to change and grow as does your business.
While you plan to survive and build revenues the leadership of the company must live up to those goals almost daily. The first step by management is to realize and accept business flaws. From a clear understanding of your flaws and with clear business goals your business can define its needs for growth. Goals for a marketing sales campaign, increasing advertising to support sales, building a strong sales force and projecting sound financial accountability are key steps for building and growing your company. These are absolutely necessary for competitive growth especially in an environment where downsizing and financial insecurity exists. This can heal and build your business and be a guiding light for future business.
The first step for companies is to understand their goals, to define their manpower and understand the dynamic environment they working within. The next step is to write a business plan and to map out a clear path for growth. This may include a restructuring, financing or equity investment or down sizing your company.
To understand this, ask yourself, How do I get there? What do I do? Which employees do I keep? Who should I Hire? Who should I layoff? How much of an investment will I need? Is it debt or equity? Can I meet the demands of a loan, line of credit or an investor? How will marketing and planning support my business growth? Do I need different licensing to expand?What contracts do I need to secure for growth? These are all questions I ask myself daily and that can be resolved with a business and marketing plan. I have developed plans for myself and other businesses for over 30 years and they inevitable cover the essential business points for success!
The business and marketing plan allows me to prioritize and meet my goals and objectives regularly. My success is almost intuitive from the empirical existence of a plan. The plan is not a final document it is a plan so it continues to change and grow as does your business.
In today's business environment where change is inevitable and pricing dynamic. The costs and pricing structures must be defined and modified to adhere to market changes. I am advocate of pricing built on quality service while adhering to customary supply chain formulas and service pricing as you grow, follow and lead in the marketplace!
In my next Blog I will highlight the Impact on sales and your companies growth potential while allocating marketing expenditures. For more information please feel free to contact me to discuss your potential growth!
Saturday, July 26, 2008
How Business Plans Count!
How Business Plans Count!
This blog is designed to provide information on business planning and marketing for your company on a regular basis. The context by which you start or run a company is the first step to success. In my analysis, that context requires framing the business in a language that your people in the leadership positions understand. This will make it easier for them to buy into the plan. It’s an understanding of the company's premise, as it exists in the world. But it’s also a way in which they can see it develop while it creates a future for them. When they buy in, it must be understood by all parties…company leaders and staff alike…that there is a true personal opportunity for everyone and it is achieved through personal growth. The central leadership of the company, as well as consultants, must be involved in the practice of writing any plan to ensure the objective and empirical thought. Without the leadership's involvement there is no commitment to the plan, and the growth of the company will flounder. With this involvement you have a chance for success, as everyone is running the same race in the right direction!
Currently I manage business affairs, people and operations for two growing companies. One is a security firm and the other is an IT/design services company. As different in services as they can be, they both require business skills that are transferable. I came from the school of hard knocks, learning by my mistakes and successes. I have been working with start-ups, new ideas, creative solutions and pioneering new businesses while making money for others for years. Along the way, I was advised that I needed to focus and listen to others who were more successful than I. Trying to find my way, I looked at business from many different vantage points. I would ask myself, “How does my client have so much real estate, business, prestige and wealth?”
What I concluded was that I lacked capital. The reality, however, is that my clients did too, for the most part, when they started. I soon learned that I needed to have a strong understanding of myself, with a greater sense of insight, knowledge and a good sense for discernment of opinions and facts. I needed to understand how other people looked at problems that led to sound business judgments. A common practice I learned from them was to FOCUS and keep on track with daily goals and continue to refine them while meeting the demands of a dynamic work environment. It may sound easy, but it’s not. That is why business plans and market planning are needed…so you can hit the mark when daily business distractions may impair your direction.
Another factor is CHANGE and for me that challenges my world, as I know it. I have to evaluate the hard questions that come up daily. I have to look at my fears and weaknesses, then confront them. All of these behaviors and feelings have carried into all parts of my life. So the most difficult challenge is to CHANGE myself and to manifest those changes into the company's activities. Seeing that very one thing in my life allowed me a greater sense of my self-worth. With that very basic principle I realized that I must be responsible for myself in order to achieve certain goals and make sure each day that I am clear about those goals. It was up to others to decide to accept or disagree with me.
I have lived a life of principled beliefs, which are founded in truth, honesty and integrity. Since that time, my business life has flourished. I believe your business can flourish, too, with the right context, change, planning, focus and good values. This will enable the company to win and grow, ultimately achieving greater revenues.
This blog is designed to provide information on business planning and marketing for your company on a regular basis. The context by which you start or run a company is the first step to success. In my analysis, that context requires framing the business in a language that your people in the leadership positions understand. This will make it easier for them to buy into the plan. It’s an understanding of the company's premise, as it exists in the world. But it’s also a way in which they can see it develop while it creates a future for them. When they buy in, it must be understood by all parties…company leaders and staff alike…that there is a true personal opportunity for everyone and it is achieved through personal growth. The central leadership of the company, as well as consultants, must be involved in the practice of writing any plan to ensure the objective and empirical thought. Without the leadership's involvement there is no commitment to the plan, and the growth of the company will flounder. With this involvement you have a chance for success, as everyone is running the same race in the right direction!
Currently I manage business affairs, people and operations for two growing companies. One is a security firm and the other is an IT/design services company. As different in services as they can be, they both require business skills that are transferable. I came from the school of hard knocks, learning by my mistakes and successes. I have been working with start-ups, new ideas, creative solutions and pioneering new businesses while making money for others for years. Along the way, I was advised that I needed to focus and listen to others who were more successful than I. Trying to find my way, I looked at business from many different vantage points. I would ask myself, “How does my client have so much real estate, business, prestige and wealth?”
What I concluded was that I lacked capital. The reality, however, is that my clients did too, for the most part, when they started. I soon learned that I needed to have a strong understanding of myself, with a greater sense of insight, knowledge and a good sense for discernment of opinions and facts. I needed to understand how other people looked at problems that led to sound business judgments. A common practice I learned from them was to FOCUS and keep on track with daily goals and continue to refine them while meeting the demands of a dynamic work environment. It may sound easy, but it’s not. That is why business plans and market planning are needed…so you can hit the mark when daily business distractions may impair your direction.
Another factor is CHANGE and for me that challenges my world, as I know it. I have to evaluate the hard questions that come up daily. I have to look at my fears and weaknesses, then confront them. All of these behaviors and feelings have carried into all parts of my life. So the most difficult challenge is to CHANGE myself and to manifest those changes into the company's activities. Seeing that very one thing in my life allowed me a greater sense of my self-worth. With that very basic principle I realized that I must be responsible for myself in order to achieve certain goals and make sure each day that I am clear about those goals. It was up to others to decide to accept or disagree with me.
I have lived a life of principled beliefs, which are founded in truth, honesty and integrity. Since that time, my business life has flourished. I believe your business can flourish, too, with the right context, change, planning, focus and good values. This will enable the company to win and grow, ultimately achieving greater revenues.
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