CREATION AND MANAGEMENT OF RESULT ORIENTED BUSINESS PLANS

CREATION AND MANAGEMENT OF RESULT ORIENTED BUSINESS PLANS BANKOLE OLORUNTOBA

“BUSINESS PLANS ARE GUIDES TO HAVING A SOUND BUSINESS”

Typical Scenario… Despite the critical importance of a business plan, many entrepreneurs drag their feet when it comes to preparing a written document. They argue that their marketplace changes too fast for a business plan to be useful or that they just don't have enough time. But just as a builder won't begin construction without a blueprint, eager business owners shouldn't rush into new ventures without a business plan.

Why a Business Planl Planning Your Business Your business plan lets you set out your vision l Helps outline a strategy to make it happen l Helps you foresee and deal with problems before they get out of hand. l The business plan is your road map, showing you the route to take, and letting you fine-tune your tactics to achieve your goals l It helps you allocate resources properly, handle unforeseen complications, and make good business decisions.

Why A Written Plan A written plan will save you time and work. l The written plan will help you get better contributions from others – including your bank, – business consultants – prospective suppliers or investors Why? because you can give them more complete information. l

What is in a business plan It should outline l what your business is, l how and where you will run it, l how you are going to finance it, l how much it has or will earn or lose l the risks and strengths of your business l describes the market l outlines your long-term goals l sets out the milestones you must reach.

How Will You Use Your Business Plan? l l A business plan can take somewhat different forms. To attract investors or create a blueprint for your own use Your plan should reveal the beauty of your business idea. You want to show potential lenders, investors, or people (you want to work with) that have a product or service that customers really want. You should prove that you are exactly the right person to make your fine idea a roaring success.

Different Approaches Attracting Investors Your plan should be carefully designed so that it sells your vision to the most skeptical people. This means your business plan should include: l a persuasive introduction and request for funds l a statement of the purpose of your business l a detailed description of how the business will work (including what your product or service will be, whether you'll have employees, who will supply your goods, and where you will be located) l an analysis of your market (who your customers are)

l l an evaluation of your main competitors a description of your marketing strategy ( E. g. how your business will reach plenty of customers and fend off your competitors) a résumé setting forth your business accomplishments detailed financial information, including your best estimates of start-up costs, revenues and expenses, and your ability to make a profit.

CREATING A BUSINESS PLAN

KEEP YOUR BUSINESS PLAN S. M. A. R. T l SPECIFIC l MEASURABLE l ACHIEVABLE l RESULTS - ORIENTED l TIME - BASED

q. The Executive Summary This isn't a warm up, preface, forward or business" section. Rather, it's your entire business plan reduced to its essence l Must capture your reader (at most two pages) to make them want to learn more about you – An introduction of your self – Your market, your product or service, – why your management team (if any) is the best lineup put together – Your projected revenues and expenses( how much money you're seeking, what you'll do with their money) – and, most importantly, "why you. "

Things To Note Tip: Think of the executive summary as the only part of the business plan most readers will study. You want them to remember Tip: Imagine you met a potential investor who was about to go into a meeting. How would you explain and sell your business idea in 56 seconds? (Keep this idea in mind and it will help you concentrate on the most relevant 200 -300 words to put in your executive summary)

q. Business Initiative A short description of the business opportunity/initiative l l What exactly do you plan to sell or offer and why Why start this particular business right now What is your motivation- Here you must describe your business idea, the product or service you will sell Set out the competitive advantage the business idea offers. – The benefits you offer your customers. – The unique features of your product or service. – How you will attract and keep customers. – How you can meet this demand at a profit. – How you will beat your competitors. – The business idea should be concise to keep your readers’ attention.

Business Description l You’ll need a good business description, that places your business within the industry l You’ll need to look at the trends in the industry l Your company’s size, products or services and the main market.

Things to Note l Tip: If you are writing this description for potential investors, don’t assume they know as much as you. If you are writing the description for your own working business plan, don’t withhold thinking this is a waste of time l Tip: Writing your business assumptions down on paper helps you clarify and think about some of the basic information underlying your business plan.

Marketing Strategy The market strategy analysis is a clear picture of your strategy to sell at a profit. l Reviews the market for your product or service, and describes the competition. l Describes your customers, how you are going to spend your advertising budget, and use your sales force to meet demand etc.

Specifically… Here you can expand on such information as: l The added benefits you offer your customers. l How you can offer a better price, quality or service than your competitors. l How you are going to expand sales while controlling costs. l Your proposed advertising and marketing budgets.

Things To Note l Whenever possible, back up current financial positions and forecasts with marketing data. For example, sales growth figures for the past three years are more powerful in backing up your forecasts than assumed growth based on a “hoped-for” market share.

Financial Projections l Forecasting the finances of your business may seem intimidating or difficult, but in reality it's not so bad. It consists of making educated guesses as to how much money you'll take in and how much you'll need to spend – l and then using these estimates to calculate whether your business will be profitable. Here are the financial projections you should make: l

l A break-even analysis. you'll use income and expense estimates to determine whether, your business will bring in enough money to meet its costs. l A profit-and-loss forecast. you'll refine the sales and expense estimates that you used into a formal, month-by-month projection of your business's profit for the first year of operations.

l A cash flow projection. A cash-flow projection shows how much money you'll have -- or how much you'll be short -- each month. l A start-up cost estimate. This is simply the total of all the expenses you'll incur before your business opens. (If you need to pay off these costs during the first year or two of business, they should be included in your month-to-month cash-flow projection )

Funding Needs l l If you’ve designed your business plan to raise money, state specifically how much you need Summarize how you plan to use the money. Include information on existing finances, alternative sources of finance, collateral, guarantors, and contracts and so on. If you are an existing business, list your main customers, expected contracts, past sales performance and so on.

Additional Tips Get Help If You Need It l Your business plan will be submitted to people you don't know well, the writing should be polished and the format clean and professional. l Your numbers must also be accurate and clearly presented. l But not all business people are great writers or mathematicians. Consider paying a freelance writer with small business savvy to help you polish your plan. l Similarly, if you are challenged by numbers, find a bookkeeper or accountant to provide needed help.

4 Crucial Questions Before you begin writing your business plan, consider four core questions: 1. 2. 3. 4. What service or product does your business provide and what needs does it fill? Who are the potential customers for your product or service and why will they need to purchase it from you? How will you reach your potential customers? Where will you get the financial resources to start your business?

HOW TO MANAGE YOUR BUSINESS PLAN l l l Constant Review Focus Dedication

The Point Of The Matter “without a clear vision of how to achieve your goals, your idea is worth very little. “Any written plan - even one that's only a couple of sentences long - is better than a great idea” “Smart entrepreneurs plan, not because accountants or business advisors tell them to, but because they understand that it increases their chances for success “

In Conclusion "The business plan is a necessity. If the person who wants to start a small business can't put a business plan together, he or she is in trouble, " - Robert Krummer, Jr. , Chairman of First Business Bank Los Angeles.

USEFUL INFORMATION l Sites: l l www. smallbusinessadvice. org. uk www. bplans. com www. myownbusiness. org www. sba. gov MY NUMBER and CONTACT l l 08029032388 tubisure@gmail. com

THANK YOU