Post on 29-Mar-2015
General Outline For a Business Plan - Ian Reid
The Topic
The Business Plan –
REAL value to the business or a waste of time?"
Agenda
Who is Platinum Black? Business Planning.
– Constructing the Business Plan.– The Value Thread.– Strategic Intent.– Marketing – Financial Viability
The “7 Hats” How to Unlock Profitability Conclusion and List of
Contents for the Business Plan
Who is Platinum Black?
Business Restructuring Specialists Been in operation for almost a decade Successfully worked with over 400 clients Focus on structuring for “Extraordinary profits” Drive our clients to succeed Objective is redundancy within 3 – 6 months Strive to consistently EXCEED clients
expectations Our methodology WORKS !!
How Effective Are We?
“With us having improved our sales by 38 % and our nett profit
before tax (audited results received today) by 205 %, this
bears testament to your methodology.”
Bob Cork – MD - BCA SA (Pty) Ltd
“The greater the difficulty, the more glory in surmounting it.
Skillful pilots gain their reputations from storms and
tempests.” Epicurus, 341-270 BC
Greek Philosopher
Business planning is hard work…..
The Effect of Not Planning
Purpose of a Business Plan
To take an objective and critical look at the businessTo provide direction to the business To assist the business in achieving shareholders goals (if correctly implemented) To communicate ideas of entrepreneurs to othersTraditionally used to raise money, but
has become a strategic tool to run the business effectively
WHY the entrepreneur believes that the proposed business will be successful
WHAT the entrepreneur is planning to do
HOW he or she will do it
WHEN it is to be done and
WHAT value to any investor
WHAT are the key success factors for the proposed business?
The Plan Should Indicate…
Constructing The Business Plan
Drive
down of
Vision,
Mission,
Objectives
and Goals
Performance
Management
Budget
Business Plan
Shareholders Expectations
Strategy & Action
Shareholders
Expectations
Appraisal value
Financial indicators
Operational
Measures
DCF
ROE
Value Drive
rs
The Value Thread
NPV
Performance
Management
Drive
down of
Vision,
Mission,
Objectives
and Goals
The most important part of the business plan is the Strategic
aspect
The numbers can change – but the STRATEGIC INTENT must be
stable
Strategic Intent
Great ideas need landing gear
as well as wings !!
C D Jackson
However….
The fast track..
Identify priorities for writing itIdentify likely readers and their needs, preferences and prejudicesDraw up a list of contentsWrite a first draft of the Executive summaryThink about what the conclusion will sayMake a start on a list of Strengths, Weaknesses, Opportunities and Threats
Research Components
The research or investigation has two components:
a market feasibility study
a financial viability study.
This information is then used to prepare a marketing plan. Decisions must be taken
on:
the exact product or service; how customers will be persuaded to
buy the product or service; how the product or service will be
made available; and what price will be charged
Content of a Business Plan
These decisions form the marketing mix and change to suit the
requirements of the potential customers
The REAL Question….
Do YOU believe in the numbers ?
Is the plan believable and attractive – to you??
“Excellence or high performance comes from moving beyond
customer satisfaction to customer delight”
Jim Clemmer
But Remember ….
Financial Viability
Projected Budgets
Projected Cash flows
Fixed assets required
Operating Expenses
Fixed costs
Profit margin & Break-even
Ratio analysis
The “7 Hats”
Operations
Human Resources
Admin & Finance
Marketing
R & DI
T
Management
The “Hats”– Methodology
Visualise the structure needed for a “hat” in 6 months’ time – to the exclusion of all othersAnalyse where that structure is nowIs there a plan to move to 6 month position?Is the plan allocated a: - priority, timing, responsibility and authority?If so – remove the ”hat” and move to next one
If not – Rectify the situation and DO IT!
Going concern…Example of “The Marketing Hat”
Identification of products and client needs
Identify target market
Analysis of “Past”, “Present” and “Future” clients
Sales plan and Marketing plan? – What worked
before ?
What data base will you need
Advertising procedures and plan and PR program?
Brag Book or web site?
Launch of new product program protocol?
How to Unlock Profitability
Passion and Motivation – with Drive and Focus
Ensuring customer satisfaction with great
products
Adhere to fundamental ratios parameters
Adherence to budgetary and cash flow controls
Structure business in terms of “7 Hats.”
Adapt to changing circumstances – be flexible
“The harder you work, the luckier you get.”
“Because its purpose is to create a customer, the business enterprise
has two – and only these two – basic functions: Marketing and innovation
Marketing and innovation produce results;
all the rest are “costs”Peter Drucker
A Word Of Caution….
Conclusion
A Business Plan definitely adds REAL value
but only if you REALLY apply your mind to it
If you Fail to Plan…..You Plan to Fail !!
List Of Contents1. Contents2. Preliminary details
Contact informationDocument controlProfessional advisersDefinitions
3. Executive Summary4. Current Situation
Basic corporate informationVision, mission, valuesHistoryBusiness organizationProducts and servicesCore competencies
5. External EnvironmentThe economyMarket analysisCompetitor analysisCompetitive advantages
6. Strategy PlansObjectivesBusiness strategyOperating plan
7. Financial AnalysisBreakeven analysisSales projectionsCapital spendingOperating costsProfit and loss accountBalance sheetCash flow and funding required
8. Risk AnalysisOverviewSWOT – strengths. weaknesses, opportunities & threatsLimiting factorsCritical success factorsAlternative scenariosSpecific risks and their solutions
9. Conclusion10. Annexes
A. Current projectsB. Detailed financial dataC. Biographies for the top management