If you do not plan your business strategy in the greatest possible detail you are needlessly handicapping yourself. Plans made in the initial stages of business, whether it be start up, development or expansion will throw up some possible problems and situations that can be resolved before they arise. The great thing about plans is they are not cast in concrete and can be amended or revised when the need arises. There are many kinds of plans to be made in business, all of them equally important which need careful consideration and practical assessment, but most of all they must be realistic. The main plan to be constructed firstly is the Business Plan. This will set the standards of the business and will include:- - Introduction and background of the main people involved.
- A list of products and services to be offered.
- Market conditions.
- Growth opportunities.
- Competition.
- All the identifiable risks involved.
- How you will compete with opposition.
Details of any research carried out will also be required. Revenue and Profit forecasts, Overhead and Cost forecasts and the financial outlook for your sphere of business all need detailed consideration and will have to be included in your Business Plan. These points and many more go into the construction of a good and effective Business Plan. You may think this is not necessary but if you are realistic and wish to be successful and efficient you will find that a good Business Plan will be of the utmost benefit to you. If you need to raise finance it will be essential for you to have a good clear, practical and well presented Business Plan. Other plans need to be made before operating the business. They will include decisions on premises, size, location, accessibility, services and whether they will allow for expansion? Are they affordable? Such plans, once made and implemented are difficult and expensive to change. Getting it right the first time is essential so it requires the most rigorous examination and thought before committing yourself. One other subject that needs careful planning and research is Staff. Employees will be one of your largest overheads. Therefore great care must be taken when compiling staff requirements. With the present legislation in force it is difficult to terminate staff once they have been employed and it is certainly expensive. Plans for administrative staff in subjects such as:- - Invoicing.
- Records.
- Banking.
- Debtors.
- Creditors.
- Ordering.
- Related tasks of administration.
All these items need planning as they will contribute to your profitability and supply the information that you will constantly require. It is also good business practice to define in your plans who in the business is responsible for specific duties. The need for other plans will arise depending on the type of business operated. It is in the best interests of the owners to plan as much detail as possible. If you feel that you need some help in making plans for some of the areas covered do not hesitate to seek professional advice. Ask your Bank Manager, Solicitor or Accountant for help and advice. |
