The Way to Go - A Fail Proof Plan

Many businesses fail within their first five years, mainly through lack of planning, so it helps to have a business plan.

You need a business plan to obtain finance and for contracts or agreements. Most importantly, you need it to determine your business’ viability, what you hope to achieve and how you will do so. You can also plan for challenges.

Thoroughly research and analyse your idea. Begin your business plan with a cover page, including your name, your business name, and contact details. A Contents page follows, then a summary of your business idea and why it will succeed. Then get into the guts of your plan. These sub-headings are just some areas to include:

1. The business idea

• customer type
• products/services
• legal requirements and regulations
• insurance, contracts and legal structure

2. Market Research and Analysis

• urrent industry state
• seasonal factors
• competition
• competitive advantage

Show there is a market for your business, and that you can offer something your competitors can’t.

3. Marketing Plan

• pricing
• accounting system, including credit
• policies
• geographical location
• advertising and promotions
• customer relations policies

4. Production and operations plan

• occupational, health and safety responsibilities
• current/potential hazards
• staffing
• contingency plans
• equipment maintenance plan
• production process
• raw materials/stock requirements

5. Financial Plan

• personal financial statements
• establishment costs
• funding sources
• cash flow, profit and loss analysis
• records

6. Action Plan

• tasks required to set-up the business

7. Applicant Information

• résumé
• business advisers
• references
• training requirements
• bankruptcy/credit problems
• relevant details to show that you are capable of managing this business

8. Appendices

• insurance quotes
• licenses
• letters

These should be listed throughout your plan and labelled as an appendix.

There are professionals who will prepare your business plan for you, pointing you in the right direction and presenting it as a well-written document, but only you can do the research and evaluations.

Your plan will constantly change. Once your business is operating, you should update your plan for at least two years ahead, even if used only by you. A business plan doesn’t guarantee a successful business – but it sure helps keep you on track.