Lack of Planning Leads to Business Failure

“Why do we need a business plan?” was outlined in the September 24 issue of The Main Report. We now outline the key elements and areas a good business plan should cover.

Part One | Part Two

• Executive Summary – a front page covering why the plan was written, a brief description of your product or service, who purchases and the benefits they seek, financial highlights of the plan and expected performance mile-stones and time-frames.

• Background – a brief history of where the company has been, any past successes, and management’s view of intentions and actions in the future.

• Product/Service – a view of the product/service, its purpose, benefits, competition, profitability, development.

• Management/Personnel – the capabilities and experience of key people, ownership packages, staff relations, management information systems, recruitment and training policies.

• Market Description – size, trends, industry drivers. Is your business in the general market or a niche within that market? How is the market defined geographically, economically, socially, technologically, financially?

• Customers – who are they – where are they – why do they buy – when do they buy – who makes the decisions – what is your customer mix (sales, products, profits) and what ultimately influences buying behaviour?

• Competition – who are they – where are they – how big are they – what influence on the market do they have – what are their weaknesses / strengths & potential – how will they react to what you do?

• Marketing & Sales – (from a customer perspective) – sales and sales support, sales trends, credit policies, pricing policy, advertising/promotion – marketing budgets, advertising/PR programs, sponsorship, trade shows, promotional literature, brand prominence, product development, distribution, sales force, sales forecasts.

Part One | Part Two

22nd April 2003
Source: Matthew Bellingham, Hayes Knight New Zealand, www.hayesknight.co.nz