| Every company needs a sound and robust business | | | | for and the key products and services you expect to |
| model that scales as life changes. Many small | | | | sell to them. Where your market has a number of |
| businesses start with a business plan based on | | | | niches, each could be described individually. |
| guesses. | | | | Your structure defines how you sell to clients, the |
| Then as life rolls on, there is never time to update it to | | | | experience and skills needed for purchasing, production |
| reflect your evolving situation. When your accountant | | | | and delivery and how you manage your cash flow. |
| nags you, you just feel bad. And your bank manager | | | | Being small, you are unlikely to have departments but |
| makes a new business plan a condition for any money | | | | you will have individuals following processes within a |
| discussions so you rush into guessing again. | | | | team. On the one hand, organising your firm will always |
| As I coach my clients, I encourage them to create a | | | | be an exercise in frustration because the supply of |
| simple, effective Business Plan that will earn them | | | | your products and services rarely equals the |
| money as their business grows and their market | | | | customers' demands. On the other hand, small |
| changes. | | | | companies thrive by picking off market opportunities to |
| Be succinct and clear | | | | which their bigger competitors cannot respond quickly: |
| I encourage the owner to write their Business Plan in | | | | - Time and market events overtake even the best |
| less than two sides of A4. In my experience with small | | | | organisation - so design flexibility into your business |
| businesses, briefer is better. The four sections should | | | | ready for when you need it. |
| each have a couple of paragraphs to say: | | | | - Unintended consequences grow with time - so keep |
| - Why are we in business? - your purpose and | | | | watching for the unexpected. Set up triggers to flag |
| intentions in running the business | | | | possible issues, agree who monitors each flag and |
| - What do we sell? - your products, services and the | | | | make the most interested person responsible for fixes. |
| combinations that customers want to buy | | | | - Make-buy decisions always trade-off costs against |
| - Who do we sell to? - your clients' demographics, | | | | co-ordination - so monitor how the actions of your |
| locations, spending habits and interests | | | | suppliers and associates effect your 'internal' costs of |
| - How do we plan to run the business? - staff, | | | | quality control, communication and re-work. Be |
| structure, targets, management and a simple cashflow | | | | prepared with a 'plan B' and re-take these make-buy |
| table (in an appendix) predicting the income and | | | | decisions at least once a year to keep people on their |
| expenses for the next 12 months | | | | toes. |
| Stay flexible and customer-centred | | | | - Understand the balance points in your business. But |
| You need to consider the Scale, Scope and Structure | | | | only re-organise once in three years - even small |
| of your business and align them with your long term | | | | changes take several months to work through a |
| Mission. Then you can include this detail in the right | | | | business. |
| paragraphs of your Business Plan. | | | | Look for results |
| Your mission is simply "Why are you running the | | | | Before you finalise the draft of your business plan, you |
| business?" State who your customers are, the needs | | | | need to answer four questions honestly: |
| you satisfy with products and services and your | | | | - Do you tell a clear story in simple business terms? |
| unique approach to your market. A strap line of 15 | | | | - Do you show where extra investment (of money or |
| words is ideal. | | | | effort) will lead to increased returns? |
| Your scale describes your team - whether you | | | | - Do you show where unique value is added for your |
| employ them, associate with them or do | | | | customers? |
| sub-contracting. You might also show how the effort | | | | - Do you describe how you expect to maintain your |
| will flex as your sales levels change. | | | | competitive edge even as your market changes? |
| Your scope outlines the customers you want to work | | | | |