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Guide to Business Planning

How to Start Your Business Plan

Formulating Your Business Goals

Management Plan

Marketing Plan

Operational Plan

Financial Plan

Action Plan

Business Plan Do's and Don'ts

More Information

 
To download the Business Planning leaflet in PDF format click here.

 

Business Planning Template (Word) [248 KB]

 

A good plan is like a map, helping you to find the best path to achieving your goals.  Setting business goals helps you to use your time and resources more effectively.  By planning ahead you are more likely to be able to take advantage of business opportunities and anticipate problems.  You will also need a business plan to raise finance.

 

Your business plan involves developing:

  • business goals;
  • a management plan;
  • a marketing plan;
  • an operating plan;
  • a financial plan;
  • an action plan.

Contents of a typical business plan:

  • Executive Summary
  • Business Goals
  • Management Plan
  • Market Research and Analysis
  • Marketing Plan
  • Operational Plan
  • Financial Plan
  • Action Plan

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How to Start Your Business Plan

 

Before you start writing your business plan it is useful to do some background preparation.  This includes:

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Formulating Your Business Goals

 

Your business goals should provide a clear picture of the business you will be in over the next years, covering:

  • what products and services you are going to sell;
  • the customer groups and their requirements you will be targeting;
  • the basis of your future success.  What will make customers buy from you rather than your competitors?
  • what business returns you are aiming to achieve.

Finalise your business goals after completing your market research.

 

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Management Plan

 

This covers how your business will be structured and run and what management capabilities will be developed.  It could also cover any legal matters in relation to structure, intellectual property rights, licensing and contractual matters, eg with suppliers.

 

Business Structure provides more information on alternative business structures.

 

Based on your research, it is useful to undertake a SWOT:  an assessment of the business that covers:

 
Internally Externally
Strengths you should build on Opportunities you should exploit
Weaknesses you need to overcome Threats you need to manage

 

Put dot points under each heading which realistically and honestly reflect your research and self-assessment.  Your business plan needs to develop strategies to deal with identified issues.

 

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Marketing Plan

 

Your marketing plan needs to identify:

 

Your product/service offering  What are you offering your customers?  What is its likely life cycle?  Are there substitutes available in the market?  Will it meet your customers' needs?

Your market  Its size, geographic location, demographics and trends?

Your customers  Who are they?  What, why, where and how often do (will) they buy?

Your competitors  Who are they?  How do they compete on price, services, quality?

 

Your marketing plan needs to cover the strategies you will put in place to capture and keep customers.  This includes how you will make your product/service available;  how you will promote them and build your business image (including networking);  and your pricing policies.

 

Marketing and Sales, Advertising and Promotion and Customer Service provide further details on how to develop your marketing plan.

 

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Operational Plan

 

You will need to make decisions on a range of operational issues, including:

 

People  Will you employ or use contract staff?  If so, how will you manage them?  What other expertise will you need?  See Employment Conditions.

Processes  What systems and procedures should you put in place?  What production output and methods will you use?  R&D initiatives.

Suppliers  Who should they be?  Cost and quantity of supplies?

Equipment/technology  What equipment and IT requirements do you have?  What skills will you need to maintain or upgrade these?

Premises  Will you purchase or lease property or work from home?  See Commercial Leases on negotiating leases.

Reporting  What is the most suitable reporting system to put in place to allow you to monitor your performance?

 

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Financial Plan

 

Your financial plan needs to cover:

  • how much money you need to start the business;
  • financial analysis - projected profit and loss over the next one to two years;
  • cash flow analysis - projected cash in and out on a monthly basis so that you can check whether you will be able to pay your bills;
  • balance sheet;
  • sources of finance - who will lend you money and how much will you need?  See Raising Finance.
  • what your business break-even point is, ie what level of production is needed to cover all your costs?

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Action Plan

 

This should set out specific tasks that need to be undertaken to implement your business plan, with clear priorities, timeframes and who will be responsible.

 

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Business Plan Do's and Don'ts

 

Do:

  • Keep updating your plan to meet changing situations.
  • Use business planning templates and tools to be sure you cover everything.
  • Refer to your action plan as a living guide.

Don't:

  • Be unrealistic about what you can achieve or base your projections on wishful thinking.
  • Underestimate the challenges in growing a business.
  • Be afraid to ask for help.

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    More Information

     

    Industry Associations and your local Chamber of Commerce and Industry offer advice and services to members.

     

    Your local Business Advisory Service can offer you one-on-one advice on developing your business plan.  It also offers low-cost workshops covering all aspects of business planning.  Call 1300 650 058.

     

    Better Business Tip
    Don't spend too long creating the "perfect" marketing or business plan.  Many businesses get bogged down writing huge documents that never get implemented.  Remember a short plan that gets carried out completely is going to do your business a lot more good than a long plan that doesn't even make a practical start.

     

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