Tag Archives: Business Plan

Business Development, Business Strategy

How to Evaluate the Performance of Your Company Based on Your Business Plan

A business plan is one of the most important documents that is needed for the betterment of the business. It includes all the need to know strategies, marketing techniques, sales techniques and financial forecasting methods that will be used to increase profits and revenue of the business. However, writing a business plan is no walk in the park. It takes a lot of time and concentration and is one of the biggest responsibilities that will be undertaken. For this crucial task there are dedicated people called business plan consultants. They will be the people who take the ideas that the entrepreneur has and converts it into a document that will be viewable by the whole world. Since this is a very big responsibility business plan consultant fee is a bit high. There are many factors that affect a good business plan and a great business plan will help the business clarify the business idea, identify potential problems in the business, find out objectives of the business and monitor the progress of the business. Since this is a very important document it is vital to keep a keen eye on the following factors when writing the business plan.

Executive Summary

The executive summary is the highlight and the brief description of the entire business. This has to be highly detailed but short enough so that a potential investor is able to read and understand the status of the business. It does not mean that it has to be limited to one or two pages.

The executive summary will include the highlight of the business concept which will describe about the product or service and the market that they are being offered. Then there are the financial features which talks about all the sales, profits, return on investment and cash flow. Then the summary has to mention about the financial requirement that is need to invest in the business and talk about the capital and how to expand the business. The current position of the business will be stating about the business’s present state and how it got here. Finally, the major achievements of the business is needed to be mentioned so that the potential investors could be impressed by the achievement that the business has done.

Business Description

The business description is about the details of the business. This should not be a highlight about the entire business like the executive summary but the in depth analysis of the business. The description has to start with a short introduction which states about the past, present and future of the industry. Here you should mention about the markets that the business will be interacting with and the future market places that business will be willing to interact with. The products or services that the business is still developing should be thoroughly discussed here so that the potential investors who have got an idea and are willing to invest in the business can get a thorough knowledge about it.

The structure of the business has to be described in the business description. The hierarchy of the business and the business places should be described in detail. The legal considerations of the business should be thoroughly stated so that there is clarity for everyone.

Market Strategies

When developing the market strategies there has to be a lot of market research done on the market place. This will give the business entrepreneur a very good idea about the potential market and how he can use the market to increase the profits of the business. After observing the market the company will be in a position to identify the strengths and weaknesses of the business and will be able to develop a system in order to identify the potential opportunities and threats. These studies will also be able to develop strategies to forecast the market place’s prices and when to supply more goods and services. These has to be clearly mentioned in the business plan so that these strategies can be used when necessary.

Pricing and Distribution

The process of pricing and distribution has to be clearly detailed in the business plan. The descriptions about all the prices must be mentioned in detail in this section. How the business can lower the prices when necessary and how t react to the fluctuating prices has to be mentioned in detail. The process of distribution of the products until it reaches the hands of the customer has to be clearly stated.

Competitive analysis

The potential competition in the market place has to be studied and noted down in detail for the writing of a good business plan. Here all the strength and weaknesses of the competition should be monitored and noted down. This will be very helpful in countering to the completion which will be vital for the success of the business.

 

Article Source: https://EzineArticles.com/expert/Asad_Zaman/2391384

 

 

 

 

Business Development, Business Strategy

Bootstrap Business Financial Plan – Starting a Small Business With Bootstrap Financing

Preparing a sound, bootstrap business financial plan is the absolute key ingredient for any budding entrepreneur starting a small business with bootstrap financing. Unlike a traditional business plan, a financial plan for a bootstrapped business contains six essential components.

Components of a Successful Bootstrap Finance Plan

1. Expense Summary
The expense summary contains the start-up costs and ongoing operating expenses needed to get your business up and running.

2. Projected Profit & Loss Summary
Your profit and loss summary is a key tool for determining how long it will take your business to become profitable. It reflects a very simple formula of: revenues minus expenses, equals profit or loss.

3. Sales Forecast Summary
Your sales forecast summary is an estimation of what you believe your sales are likely to be each month. Sales forecasting requires research and a solid knowledge of your industry, niche market and product or service.

Starting a small business with bootstrap financing requires laser targeted forecasting. This is not as difficult as it sounds, it just means you must really invest the time in thoroughly researching your business.

4. Reserve Funding Plan
Establishing a reserve funding plan is essential for weathering the “start-up storms”. This is a back up funding plan for keeping your cash flows above dangerous levels.  Your bootstrap business financial plan must include a reserve funding plan, in order for your new venture to be successful.

5. Cash Flow Management Plan
This is simply the anticipated inflow (sales) and outflow (expenses) of cash through your business by month. Why it’s so tricky is due to the fact that you may have slow sales or no sales when you’re just getting started. Or, perhaps your customers are not paying within terms. Even if you have great sales on paper, your cash flow management plan will determine your success to a large degree.

6. Balance Sheet
A balance sheet provides a good overall picture of what your business is actually worth. It takes your assets (physical goods like equipment or property) minus your liabilities (debts owed to creditors) and gives you the equity value of your business.

What makes these components different from what you would prepare for a business plan written for bank financing? Well, the main difference is that this plan is just for you. It is an actual plan that you must follow to achieve success in your business. I have seen far too many instances where a traditional business plan is almost completely ignored, once the bank loan check is cashed.

With over one third of brand new businesses failing in their first year of operation, you owe it to yourself to minimize your start up risk, by being well prepared with a sound financial plan.

Where Does a Bootstrapped Business Plan Fit In?

 Where does a bootstrap business financial plan fit in? Well, first you must understand bootstrap financing. Starting a small business without borrowing is the ultimate goal of a bootstrapped business’ financing strategy. Many new entrepreneurs just don’t realize that you can start up a business, even if you have very little money, poor credit or don’t own a home. How is this possible? I know that I’m going against conventional wisdom here, but you really can start up a brand new business without BIG bank loans or a stockpile of cash.

Find the free sources of business start up funding your new business needs to survive and thrive. Start by claiming your free copy of The Bootstrapper’s Business Start-up Planner, by visiting my website.

©2009 Kimberly Kelly – All Rights Reserved Worldwide.

Permission to reprint this article is granted strictly on the condition that it be reprinted in its entirety, with all live links and author bio in tact.

 

Kimberly Kelly is a Certified Start Up Business Consultant, specializing in bootstrap start up financing. She teaches new entrepreneurs the secrets for finding free sources of business start up funding [http://www.startupbusinesssurvivalguide.com] through her ebooks, seminars and coaching services. She is the author of the popular selling ebook: The Start-Up Business Survival Guide: 101 FREE Products and Services to Help Finance Your Dream of Successful Business Ownership. Visit her website at [http://www.startupbusinesssurvivalguide.com]

 

Article Source: https://EzineArticles.com/expert/Kimberly_Kelly/337048

 

 

 

 

Business Development, Business Strategy

Importance of Family Business Management

Ready to be at the wheel?

March 10 and 11, 2018 gave aspiring and budding entrepreneurs an opportunity to connect and collaborate. As the best and brightest minds came together and brainstormed on on how to fuel their business growth. It is the most important aspect in any of the business. The conference at IIT Mumbai brought together the best breed of entrepreneurs, innovators, venture capitalists, business model creators, consultants, policy-makers, academicians, and business practitioners to present and discuss innovation and success under the aegis of entrepreneurship for Small and Medium Businesses.

Over the past decade or so, in the dilemma between joining family owned businesses and higher studies. The scales have been tipping towards entrepreneurship and joining family owned businesses.

Let us explore the genesis and the reason why:

The Genesis

Today, family-owned businesses account for two-thirds of the world’s businesses and generate most of the world’s economic output, employment and wealth. In many regions of the world, family companies dominate the economy. “Family-controlled firms now make up 19% of the companies in the Fortune Global 500,” states The Economist. In India alone, 67% businesses are family run. McKinsey forecasts, that by 2025,there will be more than 15,000 companies worldwide with at least $1 billion in annual revenues, of which 37% will be emerging-market family firms.

The need

There is a need for Family Business Management Programs whether you are in a successful family business or you are into a business facing challenges and trying to bring about a changeover.

Successful family business:

Successful family businesses are successful because families see important changes in their industry. Simply put, successful families are entrepreneurial. Also,families succeed because they invest in productive activities, emphasise growing assets, and consume relatively little of their wealth. These families maintain a culture that encourages family members to create things of lasting value. It’s not surprising that these families encourage entrepreneurs. Furthermore,successful families remain reasonably united, keeping supportive members loyal to one another and to the family’s mission. Over generations, as families become more diverse, it is likely that only a few relatives per generation will directly work in the business.

Outside-the-business members might still support family philanthropic efforts or social activities, and sometimes that level of involvement is enough to maintain family unity. But investing in family entrepreneurs can also keep talented members contributing to the broader family’s wealth and mission. Investing in family entrepreneurs has to be done objectively based on the feasibility of their business plans, and also fairly within the family. Even if some entrepreneurial projects don’t succeed, these investments will help you spot talent to keep your business growing. And you are sending an important message: this family is committed to creating value.

Family businesses – facing challenges

While family businesses on average are stronger performers than other types of enterprise, they face distinct challenges that need to be managed. This constraint often kills the family business.

This creates the need for a course of study in Family Business Management that helps students understand how to capitalize on the strengths, navigate the challenges, and guard against the weaknesses of the companies and the families that own them.

How is Family Business Management program different from an MBA in Entrepreneurship?

Both Family Business Management and an MBA in Entrepreneurship prepare you for setting up and gearing your own business. However, there is a subtle difference. Unlike MBA in Entrepreneurship which prepares students for a setting up a business, the Family Business Management programme is targeted at family business owners looking to sustain, scale and grow their businesses. The content and pedagogy includes concepts of entrepreneurship, business sustainability, market trends which thereby lead to portfolio expansion and business growth. The program would help you evaluate the state of your family businesses and gear you towards accelerating your business to the next level.

Colleges/Institutes for Entrepreneurial Management

Xavier School of Management (XLRI),Jamshedpur, offering a full-time six-month Post Graduate Programme for Certificate in Entrepreneurship Management (PGPCEM).

Entrepreneurship Development Institute of India, Gandhinagar,offering a two-year, full-time, residential Post Graduate Diploma in Management-Business Entrepreneurship (PGDM-BE).

SP Jain Institute of Management and Research – Mumbai,Start Your Business Certification Program (SYB), Grow Your Business Certification Program (GYB), The Entrepreneurial Manager (TEM).

Narsee Monjee Institute of Management Studies,Mumbai,M.B.A in Social Entrepreneurship

Xavier Institute of Management and Entrepreneurship – Bangalore, offering one year Entrepreneurial Development Programme (EDP)

Nirma Institute of Management,Ahmedabad,offering regular two-year MBA specialising in Family Business & Entrepreneurship.

Amity Business School,Noida, offering two year M.B.A in Entrepreneurship

IIM, Bangalore, specialization in Entrepreneurs & Family Businesses.

IIM Udaipur, Management Development Program for Women Entrepreneurs.

National Institute for Entrepreneurship & Small Business Development (NIESBUD), Delhi

The NIESBUD is an apex institute in the area of entrepreneurship and small business development under the Ministry of Micro, Small and Medium Enterprises, Government of India. It oversees the activities of various institutions and agencies engaged in entrepreneurship development, particularly in the area of small industry and small business. It also provides numerous training and development courses for budding entrepreneurs and small businesses.

Making the right choice:

In the world of family business, the entrepreneurs we celebrate are usually founders of companies. If you wish to be a founder of a company, start your new venture and learn how to navigate, go in for a pure MBA in Entrepreneurship. However, if you wish to join your family business and are supposed to take care of and grow the founder’s creation, you are not expected to be entrepreneurs but to understand and carry forward the vision of the founder,an MBA in Entrepreneurship would be more helpful.

Therefore, it is imperative that you make the right and informed choice…

Are these mutually exclusive?

If this makes you think that family business management programs are incompatible to entrepreneurship. The reason is because they are for students who are in family businesses that are usually tradition-bound, multi- generational. Let me tell you, we need to blur the lines here. The family businesses need to be more entrepreneurial. They need to pass on the entrepreneurial mindset and capabilities. To create new streams of wealth across many generations- not just pass the business on from one generation to the next. We need to come up with the concept of ‘family entrepreneurship’. When a leadership transition occurs in a family business, the new generation of leadership should be careful to maintain and build on the networks and knowledge of the former leaders, while expanding their own networks. This will insure that the business can continue to be entrepreneurial into the future.

And when they do, the distinction between Entrepreneurship and Family Business Management studies would begin to blur…

Based in Ludhiana, Gauri is a motivational speaker, career consultant, philanthropist, blogger and catalyst. She has made a mark for herself in the arena of Education and Careers. With over 15 years of experience in education and counseling over more than 1500 students and 35 schools and colleges, she has appeared on over 60 Radio and TV channels including AIR, FM Gold and ZEE. She is a columnist in leading national newspapers like The Hindustan Times, The Tribune and Daily Excelsior. For info visit: http://gaurichhabra.com/

 

Article Source: https://EzineArticles.com/expert/Gauri_Nagpal_Chhabra/2567734

 

 

 

 

Business Development, Business Strategy

All the Ws of a Business Plan

A business plan is a written description of the future of your business and more importantly, how you are going to get there. It is a document that explains what you are going to do to make your company profitable and how you are going to achieve this. It defines both your business model and your strategies to make this business model work and more importantly profitable.

Normally when a business idea arises, you know what resources and capabilities you have at the start of your business and where you want to go in a certain period, usually in 3 or 5 years. But what is the way to reach that goal? Where to start? How to arouse investor interest? Even, how to get your business off the ground? Everything seems so easy when you have the great money winning idea and concept. It is how you are going to achieve these dreams and get enough money to keep the business going for many years to come.

Writing a business plan is to build a map that will guide you to where you start making money with your initial business idea. At is very basic structure, your business plan is a mixture of strategies and plans. It involves financials, marketing, staffing and products. Think of it as the foundation to your new business.

WHAT are the reasons that I might need one?

• To look for investors.

• To apply for a loan.

• To establish the viability of your business idea.

• To make improvements to your current business.

• To expand your current business.

All of these types have different emphasises and a different structure.

WHAT is a business plan?

It is a tool or document that describes a business opportunity or idea, the work team, the operational and marketing execution strategies, the business risks and the economic viability of your business. A well written document guides you to turn an idea into a viable business.

It can also be defined in another context in that the business plan becomes a fundamental tool within the analysis of a new business opportunity, a diversification plan, an internationalisation project, the acquisition of a company or an external business unit, or even the launch of a new product or service within the current business.

To summarise, both for the development or launch of a startup and for the analysis of new business investments, the business plan becomes an indispensable tool. So even though you have an established business, you will still need a business plan as you expand and improve that business.

A business plan is never finished and should be reviewed from time to time at least annually but certainly when large changes to an existing company are anticipated. This implies that every plan must adapt effectively and efficiently to the changes, helping the project to continue.

WHAT is the point of a business plan?

Many entrepreneurs think they only need a business plan when they are seeking investment or when the bank asks for one. However the act of business planning, when completed correctly, enables the entrepreneur to carry out an extensive market study that will provide the information required to design the best possible business model that will be both profitable and efficient.

Additionally, the business plan will develop the strategic measures for all functional areas that will enable them achieve the objectives for the new business.

Once written, the business plan will serve as an internal tool to assess the management of the company and its deviations from the planned scenario. Proposing, if necessary, adaptations to the agreed business model in order to obtain updated information for the daily management of the company. This will include preparation of the required changes and processes to bring the business back on track.

So lets dive into the concepts behind business planning a bit more.

The WHY of The Business Plan

• Why do you want your business plan?

• Why are you writing the plan now?

 

The WHAT of the Business Plan

• What is the purpose of developing a specific plan?

• In what period do you consider it possible to carry out your projects?

• What is your business model?

• What is your Value Proposition?

• What are your products or services to be offered?

• What positioning do you plan to develop to compete?

• What are your measurements of success?

• What markets do you plan to penetrate?

• What market percentage do you estimate to obtain?

• What margins do you consider possible?

• What income do you consider you will receive?

• What are the costs of expansion?

• What are the costs of obtaining new customers?

• What do you want to do with your business?

• What strategies do you want to undertake – financial, marketing and planning

 

The WHERE of the Business Activity

• Where will your products be sold from? Shop, office, website, social media, road side, party planning,

• Where are you based? Locally, centrally, virtually etc.

• Where are your products produced?

• Where are your distribution channels?

• Where are they going to be sold?

• Where is your market?

• Where will your staff need to be based?

 

The WHEN of your business planning activities

• When will you need to start your new activities?

• When will they end?

• When will your investor need to invest?

• When will your investor get their money back?

• When will you have enough staff to carry out your new changes?

• When will your products and services be available?

• When will your products need to be updated and/or improved?

• When is the best time to attract new customers?

 

WHO do you present your plan to?

• Bank for loan purposes and they will take a charge over a property usually.

• Investor to join your company as a shareholder.

• Angle Investor to join as a shareholder but also be involved in the running of your company.

• Management team so they know what is expected of them.

• Suppliers who will be offering credit.

• Director level hires so that they are encouraged to join your company.

• Believe it or not the entrepreneur should also refer back on a regular basis.

 

As you can see there are a lot of Ws involved with a business plan – the biggest W is why should you write a business plan and the answer is – because it is such a great business tool.

 

Writing a winning business plan is a complicated procedure and best accomplished with an experienced business consultant. BizGuru.us can assist you with consultancy, strategies, business model canvas production and pitch decks.

Article Source: https://EzineArticles.com/expert/Lee_Lister/15449

 

 

 

 

Business Development, Business Strategy

Use a Marketing Research Plan to Focus on Your Market

A marketing research plan needs to include different types of market research, and include the impact or results of that research in your business and/or your business plan. You can build a stronger value proposition by using a targeted marketing research process and approach.

What are some different types of market research? In terms of the process of analyzing your market, there is primary research (collected for the ‘first’ time, original investigation) and secondary research (use of data and analysis from other sources – online and offline). Primary is usually more time consuming and expensive but is more likely to be more clearly targeted on a specific issue or problem; secondary may be more general, less targeted but more economical.

Why is having a marketing research plan important to your business? Because without a plan you will not understand as much as you should about your market. For example, you will not know how your market (that is, customers) feels about your service, your products and your brand until they demonstrate it by not buying your products. The opposite of that – buying too much of your products – can also have an impact on your business; you may be forced into the position of not being able to satisfy a demand that you didn’t see coming. In either scenario, the result will be unsatisfied customers.

The marketing research process and approach can include using methods such as surveys, interviews (face-to-face or telephone), and focus groups. It can be used to investigate competitive activities and impacts; the health of the industry you operate in; brand awareness and credibility; the impact and effectiveness of your advertising ‘spend’; what motivates your customers to buy (from you or your competition); how satisfied your customers are (or aren’t) and what it is that makes them satisfied, or not; what products or services you should add to your line; how to more narrowly target your market; whether you should grow your geographically reach; and much more.

Conducting marketing analysis includes defining the management issue or question to be answered (the why); developing the proposal (how will the issue be studied); identifying what will be studied, the time frame (when it will be studied and for how long), and who will be doing the analysis. Once the problem is clearly defined, the key issues in researching revolve around accurate and unbiased data collection, analysis and interpretation of the data and reporting of results.

Of critical importance, once the marketing research plan is completed, and the analysis has been conducted, is to act on the recommendations of the study. The investment of your time and resources must benefit the business: if you trust the results of the analysis and research, then make decisions and take action on the outcomes. If you don’t trust or believe the results of the research, then invest in re-doing it, or having a third party consultant or researcher take a different approach. But don’t go into a research project with a pre-defined idea of what the result should be; you will build bias into the study and be disappointed in the outcomes.

Use the 9 Steps to Your Marketing Research Plan to build your own plan and to focus your marketing research process on the most effective approaches and methods for your business.

Kris Bovay is the owner of Voice Marketing Inc, the business and marketing services company that provides you with a voice in your markets. Kris has 25 years of experience in leading large, medium and small businesses. Visit More For Small Business for more proven business strategies and other small business services. Copyright 2008-2009 Voice Marketing Inc.

Article Source: https://EzineArticles.com/expert/Kris_Bovay/216730