CREATION AND MANAGEMENT OF RESULT ORIENTED BUSINESS PLANS

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CREATION AND MANAGEMENT OF RESULT ORIENTED
BUSINESS PLANS

• BANKOLE OLORUNTOBA

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BUSINESS PLANS ARE GUIDES TO HAVING A SOUND
BUSINESS
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Typical Scenario

• Despite the critical importance of a business
  plan, many entrepreneurs drag their feet when it
  comes to preparing a written document.
• They argue that their marketplace changes too
  fast for a business plan to be useful or that
  they just don't have enough time.
• But just as a builder won't begin construction
  without a blueprint, eager business owners
  shouldn't rush into new ventures without a
  business plan.

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Why a Business Plan- Planning Your Business

• Your business plan lets you set out your vision
• Helps outline a strategy to make it happen
• Helps you foresee and deal with problems before
  they get out of hand.
• The business plan is your road map, showing you
  the route to take, and letting you fine-tune your
  tactics to achieve your goals
• It helps you allocate resources properly, handle
  unforeseen complications, and make good business
  decisions.

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Why A Written Plan

• A written plan will save you time and work.
• The written plan will help you get better
  contributions from others
• including your bank,
• business consultants
• prospective suppliers or investors
• Why? because you can give them more complete
  information.

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What is in a business plan

• It should outline
• what your business is,
• how and where you will run it,
• how you are going to finance it,
• how much it has or will earn or lose
• the risks and strengths of your business
• describes the market
• outlines your long-term goals
• sets out the milestones you must reach.

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How Will You Use Your Business Plan?

• A business plan can take somewhat different
  forms. To attract investors or create a blueprint
  for your own use
• Your plan should reveal the beauty of your
  business idea.
• You want to show potential lenders, investors, or
  people (you want to work with) that have a
  product or service that customers really want.
• You should prove that you are exactly the right
  person to make your fine idea a roaring success.

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Different Approaches

• Attracting Investors
• Your plan should be carefully designed so that it
  sells your vision to the most skeptical people.
• This means your business plan should include
• a persuasive introduction and request for funds
• a statement of the purpose of your business
• a detailed description of how the business will
  work
• (including what your product or service will be,
  whether you'll have employees, who will supply
  your goods, and where you will be located)
• an analysis of your market (who your customers
  are)

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• an evaluation of your main competitors
• a description of your marketing strategy ( E.g.
  how your business will reach plenty of customers
  and fend off your competitors)
• a résumé setting forth your business
  accomplishments
• detailed financial information, including your
  best estimates of start-up costs, revenues and
  expenses, and your ability to make a profit.

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CREATING A BUSINESS PLAN
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KEEP YOUR BUSINESS PLAN S.M.A.R.T

• SPECIFIC
• MEASURABLE
• ACHIEVABLE
• RESULTS - ORIENTED
• TIME - BASED

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The Executive Summary

• This isn't a warm up, preface, forward or
  business" section. Rather, it's your entire
  business plan reduced to its essence
• Must capture your reader (at most two pages) to
  make them want to learn more about you
• An introduction of your self
• Your market, your product or service,
• why your management team (if any) is the best
  lineup put together
• Your projected revenues and expenses( how much
  money you're seeking, what you'll do with their
  money)
• and, most importantly, "why you."

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Things To Note

• Tip Think of the executive summary as the only
  part of the business plan most readers will
  study. You want them to remember
• Tip Imagine you met a potential investor who was
  about to go into a meeting. How would you explain
  and sell your business idea in 56 seconds? (Keep
  this idea in mind and it will help you
  concentrate on the most relevant 200-300 words to
  put in your executive summary)

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Business Initiative

• A short description of the business
  opportunity/initiative
• What exactly do you plan to sell or offer and why
• Why start this particular business right now
• What is your motivation- Here you must describe
  your business idea, the product or service you
  will sell
• Set out the competitive advantage the business
  idea offers.
• The benefits you offer your customers.
• The unique features of your product or service.
• How you will attract and keep customers.
• How you can meet this demand at a profit.
• How you will beat your competitors.
• The business idea should be concise to keep your
  readers attention.

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Business Description

• Youll need a good business description, that
  places your business within the industry
• Youll need to look at the trends in the industry
• Your companys size, products or services and the
  main market.

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Things to Note

• Tip If you are writing this description for
  potential investors, dont assume they know as
  much as you. If you are writing the description
  for your own working business plan, dont
  withhold thinking this is a waste of time
• Tip Writing your business assumptions down on
  paper helps you clarify and think about some of
  the basic information underlying your business
  plan.

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Marketing Strategy

• The market strategy analysis is a clear picture
  of your strategy to sell at a profit.
• Reviews the market for your product or service,
  and describes the competition.
• Describes your customers, how you are going to
  spend your advertising budget, and use your sales
  force to meet demand etc.

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Specifically

• Here you can expand on such information as
• The added benefits you offer your customers.
• How you can offer a better price, quality or
  service than your competitors.
• How you are going to expand sales while
  controlling costs.
• Your proposed advertising and marketing budgets.

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Things To Note

• Whenever possible, back up current financial
  positions and forecasts with marketing data.
• For example, sales growth figures for the past
  three years are more powerful in backing up your
  forecasts than assumed growth based on a
  hoped-for market share.

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Financial Projections

• Forecasting the finances of your business may
  seem intimidating or difficult, but in reality
  it's not so bad.
• It consists of making educated guesses as to how
  much money you'll take in and how much you'll
  need to spend
• and then using these estimates to calculate
  whether your business will be profitable.
• Here are the financial projections you should
  make

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• A break-even analysis. you'll use income and
  expense estimates to determine whether, your
  business will bring in enough money to meet its
  costs.
• A profit-and-loss forecast. you'll refine the
  sales and expense estimates that you used into a
  formal, month-by-month projection of your
  business's profit for the first year of
  operations.

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• A cash flow projection. A cash-flow projection
  shows how much money you'll have -- or how much
  you'll be short -- each month.
• A start-up cost estimate. This is simply the
  total of all the expenses you'll incur before
  your business opens. (If you need to pay off
  these costs during the first year or two of
  business, they should be included in your
  month-to-month cash-flow projection )

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Funding Needs

• If youve designed your business plan to raise
  money, state specifically how much you need
• Summarize how you plan to use the money.
• Include information on existing finances,
  alternative sources of finance, collateral,
  guarantors, and contracts and so on.
• If you are an existing business, list your main
  customers, expected contracts, past sales
  performance and so on.

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Additional Tips

• Get Help If You Need It 
• Your business plan will be submitted to people
  you don't know well, the writing should be
  polished and the format clean and professional.
• Your numbers must also be accurate and clearly
  presented.
• But not all business people are great writers or
  mathematicians. Consider paying a freelance
  writer with small business savvy to help you
  polish your plan.
• Similarly, if you are challenged by numbers, find
  a bookkeeper or accountant to provide needed
  help.

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4 Crucial
Questions Before you begin writing your business
plan, consider four core questions

• What service or product does your business
  provide and what needs does it fill?
• Who are the potential customers for your product
  or service and why will they need to purchase it
  from you?
• How will you reach your potential customers?
• Where will you get the financial resources to
  start your business?

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HOW TO MANAGE YOUR BUSINESS PLAN

• Constant Review
• Focus
• Dedication

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The Point Of The Matter

• without a clear vision of how to achieve your
  goals, your idea is worth very little.
• Any written plan - even one that's only a couple
  of sentences long - is better than a great idea
• Smart entrepreneurs plan, not because
  accountants or business advisors tell them to,
  but because they understand that it increases
  their chances for success

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In Conclusion

• "The business plan is a necessity. If the person
  who wants to start a small business can't put a
  business plan together, he or she is in trouble,"
  
• - Robert Krummer, Jr.,
• Chairman of First Business Bank
• Los Angeles.

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USEFUL INFORMATION

• Sites
• www.smallbusinessadvice.org.uk
• www.bplans.com
• www.myownbusiness.org
• www.sba.gov
• MY NUMBER and CONTACT
• 08029032388
• tubisure_at_gmail.com

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• THANK YOU