Key Elements to a Good Business Plan

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• Manufacturing or Service Supply Process – capacity, capital needs, raw material requirements, quality control, technology requirements, labour needs, prime costs, government policy impact on industry

• Financial Information – latest annual accounts showing key financial ratios – sales history, trends and forecasts – expense trends – capital purchase timing – cash-flow forecasts (important to show that you either have, or will generate, the funds to run the business and implement the plan) – recent profit and loss statements and balance sheet.

• Risk Factors – commonly addressed in a S.W.O.T. analysis that outlines internal strengths & weaknesses AND external opportunities and threats. It is important to rank each item in each section, as some ‘strengths’ may be critical in the market place while some ‘weaknesses’ may be commercially terminal.

• Time-frames and Benchmarks – what gets measured gets managed. You must regularly examine your key performance indicators to determine whether you are making progress against your objectives. Identify problem areas before they get out of control. Don’t try and measure everything – focus on those indicators that are the most immediate and those likely to have pro-found impact on the business.

• Supporting Data – any key product, company or industry information that has been used to validate your assumptions and targets should be part of an appendix. This increases the credibility of your plan. Some examples are:
Product literature • Market surveys • Industry statistics
Financial/economic forecasts • Annual accounts

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