Business planning
Question
What is a business plan?
Answer
A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.
The business goals may be defined for for-profit or for non-profit organizations. For-profit business plans typically focus on financial goals, such as profit or creation of wealth. Non-profit and government agency business plans tend to focus on organizational mission which is the basis for their governmental status or their non-profit, tax-exempt status, respectively—although non-profits may also focus on optimizing revenue. In non-profit organizations, creative tensions may develop in the effort to balance mission with "margin" (or revenue). Business plans may also target changes in perception and branding by the customer, client, tax-payer, or larger community. A business plan having changes in perception and branding as its primary goals is called a marketing plan.
Business plans may be internally or externally focused. Externally focused plans target goals that are important to external stakeholders, particularly financial stakeholders. They typically have detailed information about the organization or team attempting to reach the goals. With for-profit entities, external stakeholders include investors and customers.[1] External stake-holders of non-profits include donors and the clients of the non-profit's services.[2] For government agencies, external stakeholders include tax-payers, higher-level government agencies, and international lending bodies such as the IMF, the World Bank, various economic agencies of the UN, and development banks.
Internally focused business plans target intermediate goals required to reach the external goals. They may cover the development of a new product, a new service, a new IT system, a restructuring of finance, the refurbishing of a factory or a restructuring of the organization. An internal business plan is often developed in conjunction with a balanced scorecard or a list of critical success factors. This allows success of the plan to be measured using non-financial measures. Business plans that identify and target internal goals, but provide only general guidance on how they will be met are called strategic plans.
Operational plans describe the goals of an internal organization, working group or department.[3] Project plans, sometimes known as project frameworks, describe the goals of a particular project. They may also address the project's place within the organization's larger strategic goals.[4][5]
Business plans are decision-making tools. There is no fixed content for a business plan. Rather the content and format of the business plan is determined by the goals and audience. A business plan should contain whatever information is needed to decide whether or not to pursue a goal.
For example, a business plan for a non-profit might discuss the fit between the business plan and the organization’s mission. Banks are quite concerned about defaults, so a business plan for a bank loan will build a convincing case for the organization’s ability to repay the loan. Venture capitalists are primarily concerned about initial investment, feasibility, and exit valuation. A business plan for a project requiring equity financing will need to explain why current resources, upcoming growth opportunities, and sustainable competitive advantage will lead to a high exit valuation.
Preparing a business plan draws on a wide range of knowledge from many different business disciplines: finance, human resource management, intellectual property management, supply chain management, operations management, and marketing, among others.[6] It can be helpful to view the business plan as a collection of sub-plans, one for each of the main business disciplines.[7]
"... a good business plan can help to make a good business credible, understandable, and attractive to someone who is unfamiliar with the business. Writing a good business plan can’t guarantee success, but it can go a long way toward reducing the odds of failure."
Question
Why do I need a business plan?
Answer
A business plan is often the entry-level requirement to getting government money, investor capital or bank loans. Although, you may have a complete picture of the business in your head, investors and bankers need to see if you really have an understanding of the business and have thought it through.
Preparing a plan is a long and daunting task but in the end the business owner often sees things from a new perspective and has mitigated any risks. The business plan is not just for banks and investors but also supplies you with a blueprint of succeeding in business. The plan provides you with the direction of your company and is a guidepost for your employees too.
The primary job of a business owner is to manage and run a business. The term manage implies the task of planning and execution. The process of business planning helps reduce risks. Entrepreneurship is often the ability to build a business by taking calculated risks. If you are putting your life savings on the line, endangering your family's stability and borrowing other people's money, it is your responsibility as a business owner to not take risks but only calculated risk. The business planning process does not guarantee success but surely decreases the odds of failure.
Question
How long will it take to write a business plan?
Answer
Writing a business plan is a difficult and arduous task and can take anywhere from 20 hours to several months. It depends on the complexity of the business venture or project that you are planning and how much information is needed to thoroughly complete it. The time it takes to research and write a business plan is contingent upon a number of factors including the concept, the intended audience, status of business (start-up or existing) and number of people on the planning team. If you're flying solo and it's an entirely new concept, it will take considerably longer than if it was an existing business with three or four team people tackling the plan. On average, a start-up plan will take anywhere from 160 to 640 hours to research and write. Established businesses should allow between 40 and 160 hours.
Question
What Is a Professional Business Plan Writer?
Answer
Before deciding whether or not you should hire the services of a professional business plan writer, you should first clearly understand what they are. In most cases, you will find these individuals to be experienced, professional writers who are well versed in business terminology and who can effectively understand the needs of businesses. It is important to understand when writing anything, even a business plan, that it is the wording which makes all the difference; the words used can be the difference between success and failure. That is why a large number of small business owners turn to professional writers for assistance.
Question
What can a Professional Business Plan Writer do for me?
Answer
When it comes to searching for a professional business plan writer, you will find that different writers perform different duties. For example, a large number of writers will merely take your ideas, which you have already thought out and developed, and present them in a professional matter; they will just present your plans in a more professional way than you could.
Then there are the professional business plan writers who will work with you to develop your plan from the inception of the basic ideas for your business to the finish document. Naturally since more work and time goes into to assisting you with developing a business plan from the bottom up you will probably find that the services of these writers cost more than traditional ones.
It is important therefore that before you start your search you be very clear in your own mind as to what level of support and input you require.
Question
Why Hire a Professional Business Plan Writer?
Answer
There are a number of different reasons why small business owners turn to professional business plan writers. One of the key reasons is of lack of experience when it comes to putting ideas on paper and not knowing what format a plan should take. If you have never created a business plan before you can easily find yourself staring at a blank piece of paper for hours on end!
Although it is relatively easy to learn how to create your own plan, it can be a time consuming process to undertake the research and get into the appropriate mindset. With the right experience, a professional business plan writer will be able to create a detailed, professional business plan in half the time that it would take you to create the same plan.
Question
How Do I find someone?
Answser
If you are interested in acquiring the services of a professional business plan writer, you have a number of different options. One of those options is to search for someone locally. Dealing with a local business plan writer is great, especially if you want to deal with someone face-to-face. Your search can focus on your local government business advice centres or even asking fellow business colleagues. If there is a writing group or circle in your locality then you can approach them for potential names.
The only problem that you may find is that not all areas of your country will have professional business plan writers. This means you may have to turn to the Internet for assistance. By conducting an online search you will find a large number of professional writers who specialize in creating or writing business plans.
Question
What should I look for before hiring someone?
Answer
When choosing a professional business plan writer it is important that you don’t choose either the first person that you come across, or the cheapest. If a well written business plan is crucial to the success of your plans then you must be careful in your selection. Your business plan may not only be used for your personal guidance, but it may also be used to attract financing for your business and that is why your plan must look professional, be detailed and readable.
Before hiring a writer, you should request samples of previous work and also ask to see testimonials from business owners who have used their services. This will help to ensure you are getting your moneys worth and that you end up with a business plan you can proud distribute.
As with any contract you enter into be very certain what you are getting for your money. Does the contract include the provision for free updates or unlimited revisions before the final version is agreed? Will you be charged per word, per page, or by the hour? Make sure you fully understand the deal.
By following these points you should be able to decide whether or not a professional business plan writer can assist you. Whilst they can be an additional cost you may not be able to afford, in the long run it could be the best investment you ever made.
Should You Bring In A Consultant To Help Develop Your Business Plan?
You’ve decided you need a business plan, but you’ve been struggling so much with it that you’re ready to drop the whole thing. Now may be the time to ask yourself: should I complete the plan by myself or should I hire a consultant? If you decide to hire a consultant, what skills and qualifications should you look for? What services should they provide? Finally, how much should you expect to pay? Let’s explore the answers.
How serious are you about the business? If you are just toying with an idea, or have not invested much time in research and planning, you may not be ready to think about a business plan. If you aren’t committed to your business idea, you will just be wasting everyone’s time --- and your own money --- by hiring a consultant at this stage.
Which is more precious to you: your money or your time? This sounds like a silly question, but it really isn’t. Many entrepreneurs are unemployed or underemployed, and have lots of time but very little money. In that case, you must be judicial about the level of service you will need from a consultant. If you are a good writer, you can simply hire a consultant to guide and advise you, but do most of the writing yourself. This is an excellent use of your hard-earned money and will always be a good investment as long as you choose a real professional who understands your business. Keep in mind that good consultants are in high demand and charge accordingly. It is far better to budget for the planning phase and only hire someone good when you can pay their fees, rather than hire someone who doesn’t know what they are doing and waste your money.
On the other hand, if you are fully employed, or have significant funds, you may be in the enviable situation of having more money than time. In this case, you should definitely hire a consultant to guide you through the business planning process, and maybe even write the business plan for you. However, if you want a useful business plan, recognize that you still need to be involved at every step of the process, and understand everything in the plan --- from the mission statement through the exit strategy. Otherwise you’ll just end up with a very expensive paperweight.
Have you ever started a business before? If not, then you should definitely consider hiring someone to help you develop the concept, research the market and competition, construct realistic financial projections, and help you explore some of the risks involved. Furthermore, any business plan consultant worth his or her salt will be able to provide some guidance in setting up your company, finding office or retail space, etc. Generally, the consultant will refer you to trusted experts in each subspecialty (legal, real estate, accounting, insurance, etc.), or at least steer you in the right direction.
Do you need to obtain bank financing or other investment capital to start the business? This is an area fraught with peril because you generally get only one shot when it comes to investors. If they don’t like what they see the first time, they usually move on to the next opportunity. A professional consultant can increase your chances of getting funded, and your likelihood of succeeding once you get funded. The key here is to make sure the plan is based on reality, not fantasy.
What is the market potential for your business idea, and how much of that market do you want to capture? If the market is very large (say billions of dollars), and you want to grow the business to a sizeable percentage of this, then the risk of not getting things right from the beginning far outweighs the small cost of hiring a consultant to make sure you get it right. This is the one case where it never makes sense to “do it yourself”. The key, however, is to hire someone who really adds value.
If you decide you need some professional help, then you need to consider a different set of questions.
What should you look for when you hire a professional consultant? First, and foremost, make sure they really are professionals. Look for the following:
Do they have a credible website?
Are they incorporated?
Do they do this for a living, or is it just a hobby?
Do they have satisfied clients and will they refer you to these clients?
Do they understand your business?
If the answers to all of these questions are “yes”, then you might be in luck.
Do you feel comfortable with this person or group? The most successful arrangement is “collaborative”. You need to have some give and take with the consultant. You should feel comfortable asking questions, and the consultant should be willing to answer your questions. If not, it just won’t work. Beyond that, you need to trust this person (or group). If you feel they are playing games or don’t listen, then walk away.
The same holds in reverse. If you withhold information from the consultant, don’t return phone calls, or play some other sort of game, then you are wasting your time and money.
How many people will work on your business plan? If the answer is “one” then you may not get the highest quality work. No single individual excels at everything. In my experience the best results come when you have one person driving the project, but 2-3 others (with different skill sets) also involved. This is a case where you need one executive chef, but too many cooks spoil the broth.
What should you expect to pay? A professional business plan consultant will generally charge between $3,000 and $15,000 for a complete business plan (although there are cases where $50,000 is justified). The low end applies for “simple” businesses such as a pizza shop, a small retail store, a hairdressing salon, etc. If your business plan involves new or complicated technology, unusual or multiple revenue streams, or requires significant investment capital, you should expect fees at the higher end of this scale. Often I find clients come to me claiming their plan is “simple”. Once we start digging into the details, we find things are a little more complicated than they thought. A good consultant will have enough experience to figure out a way through the complexity and identify one or more possible solutions.
How can you save money and still ensure high quality? The key is to figure out what you know, and what you are good at. Then have a consultant help fill in the gaps. For instance, suppose you have a strong background in sales and technology, but have little expertise in marketing and finance. Then you should find a consultant who excels in marketing and finance. Of course they still need to understand almost everything about the business, but if you can focus on what you do best and have them fill in the gaps, you will save yourself some money and also end up with a much stronger business plan than if you did everything yourself.
Web sites
Does my business need a website
Do I Need a Website? With the economy at crisis levels, a natural inclination is to tighten belts and avoid extra expenditures. But as markets shrink, it's even more important for your company or organization to attract new business and retain current clients.
So what's the most cost-effective method of promotion? A Web site.
Q: WHY A WEBSITE?A: First of all, the public now expects businesses and organizations to have a Web site -- one that can, at the very least, supply basic information and a means of getting in contact. A Web site has become nearly as essential as a telephone or fax machine or printed brochure.
But apart from fulfilling the public's expectations, a Web site will also help your business increase profits. Increasingly, people search the Web rather than the Yellow Pages when looking for a service or product. Yes, even in Israel.
If they don't find your business represented, they will find your competitor 's.
Q: WHAT CAN A WEBSITE DO FOR ME?A: A few examples of immediate, practical benefits:
Expand the effect of a print ad. Addition of a Web site address to an ad, even a very small one, means that anyone intrigued by the ad can immediately access much greater amounts of information about your company. The effect is heightened when you add suitable photos to your site.
Save time. Much company time and effort is often wasted by repeatedly providing the same information either by phone or in person. Have a section on your site that provides answers to frequently asked questions.
Make it easier for potential customers to find you. Include a detailed road map on your site, and make things even easier for customers by indicating parking lots and bus stops.
Q: WILL A WEBSITE MAKE MY BUSINESS IMMEDIATELY MORE SUCCESSFUL?A: Does a phone, or fax machine or brochure? All are tools for communication and promotion, but need to be used effectively. On the other hand, neglecting to have one of these tools can put your company at a serious disadvantage. No company operates without a phone. A Web site -- and the services it can provide -- is equally essential for a 21st century business.
To get some indication of how immediate your need for a site is, check out the Web presence of your competitors. None of them have Web sites yet? Lucky you -- you've not only got some breathing space, you also have a good shot at being the first to attract new markets. Your competitors already have Web sites? Get to work -- fast.
Q: GIVE ME SOME EXAMPLES OF HOW A WEBSITE WILL HELP MY SPECIFIC BUSINESS:A: The possibilities are limited only by imagination and budget, but following are some benefits that can be provided by even the simplest, most basic "brochure" site:
Restaurant:People choose restaurants not only for their food, but also for their ambiance and convenience.
Show attractive photos of the interior, and sample entrees on a beautifully set table.
Have you had good reviews? Reprint them on your site.
Show your menu.
Advertise special offerings and services such as business lunches, catering, etc.
Post testimonials from satisfied patrons.
Include a printable map, which shows the location of parking and bus stops.
Professional services (attorney, doctor, dentist):For these services, which can't use conventional advertising methods, a Web site is especially valuable. Here is an accepted way of showcasing your areas of specialization. Do you have publications? Cite them. Awards? Display them. Articles or case studies that demonstrate your credentials? Place them online.
Design services (architect, interior designer, home renovator, illustrator, etc.):Here a picture isn't worth a thousand words. It's worth a million. Before & after pictures can tell your story -- without the costs of 4-color printing, plus distribution.
Realty services:Here, too, pictures are a great tool. Show off properties with lots of full-color, large-format photos. Sites are easily kept current with new information and properties.
Retail store:Even if you're not yet ready for the expense of full-blown e-commerce, a site can effectively promote your business. A user-friendly online brochure is easily done -- and saves thousands in printing and mailing costs.
You can publicize sales and special offers.
Looking for employees? Post the positions and let prospects contact you by e-mail.
Post a printable map showing your location.
Customer service is faster and friendlier when customers can contact you immediately, 24 hours a day, by e-mail -- rather than have to wait on the phone, listening to Muzak, and getting more impatient by the second.
Writers:
Post clips with copyright information, and refer editors to this page in your queries.
Promote published books.
Sell your books from your site via an affiliate link to an online seller such as Amazon or Barnes & Noble. You'll earn up to 15% in referral fees, apart from royalties.
Non-profit organizations:It's important to establish credibility -- especially when you're engaged in fundraising. Document your organization's progress, achievements, contributions. Once your site is launched and properly registered with search engines you may be found by sectors of the public that you'd never have been able to otherwise identify and reach.
Q: WILL I BE ABLE TO AFFORD A WEBSITE?A: Prices vary widely, depending on the specifics of each individual site. But when considering the benefits that even the simplest Web site can provide, the question to ask is less "Can I afford to have a Web site?" than "Can I afford not to have one?"
Hosting services
What is the first thing you look for when choosing a Web hosting provider?
Choosing a Web hosting provider can be tricky. You want to find one that doesn't cost more than your site earns, but it needs to have the features and support you need as well. Plus, you need to think about things like uptime, space, and the operating system. What is the first thing you look for when trying to find a good hosting provider? Why do you look for that? If it's price, are you looking for the cheapest price, the most features for your money, or something else?
See what other companies look for when deciding on a hosting service Click Here
See why other companies change hosting providers Click Here
