Planning for Success seminar notes
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The document outlines a '4 x 4 plan' for growing businesses, emphasizing personal development, objective setting, mentoring, and local skill acquisition. It discusses common excuses for not having a written business plan and lists top reasons for business failure, including poor accounting and lack of cash cushion. The essentials for creating a business plan, including market research, operations, and financials, are highlighted to support goal setting and operational efficiency.
Planning for Success seminar notes
- 2. The 4 x 4 Plan The Best Business Life By Far Each Month • Get 4 hours personal development • Spend 4 hours set & review SMART objectives • Gift 4 hours mentoring another business • Buy 4 hours insourced skill locally The 4 x 4 plan will lead to a better organised more focused, better networked, more profitable business with a more fulfilled business life. Try it for 4 months and see the difference.
- 3. Planning For
- 4. Top 6 Excuses For not having a written plan 1. I do not need outside funding – why bother 2. I know what’s wrong – I’m just not selling enough 3. It will be wrong anyway 4. I have it all in my head 5. I always deal with challenges as they arise really well 6. A business plan won’t help me after start-up Top 10 Reasons For Business Failure 1. The maths just does not add up Demand at the price does not add up to a (enough) profit 2. The owner gets in the way Stubborn, risk averse, conflict averse, perfectionist, greedy, self-righteous, paranoid, indignant, insecure…… 3. Out of control growth Added; products; markets; team members; borrowing. less can be more 4. Poor accounting (you do not know what’s going on) Flying blind always results in a crash - get accounting visibility 5. Lack of cash cushion Stuff happens, pay, borrow, or go bust? 6. Operational mediocrity Referral business is vital to success, who will refer mediocrity? 7. Operational Inefficiency Over-priced labour, rent, materials, as economy tightens and competition gains 8. Dysfunctional Management Lack of vision, focus, planning, standards. Add pressure and arguments 9. Succession Plan Nepotism and favouritism, replace effective performers with incompetents 10.Declining Market Failing to keep in-touch with what customers want to buy. Change the offer The Biggest and most Successful businesses plan every year. Do they just like admin?
- 5. Top 7 Uses For a Business Plan 1. Money Bankers, VC’s, Angels , all lenders need to understand your chances of success 2. Goal setting The map for your vision sets milestone targets 3. Daily Operations Policies, operating procedures, quantified daily tasks that add up to a profit 4. Foresee Issues Test the feasibility of your idea, know it will work, measure results against plan 5. Customer centric Research your customers, understand them thoroughly, supply a need 6. Value creation Paying your bills and yourself is a start point, know how to create value 7. Leadership Staff, advisors, mentors, all need to understand your vision, your route map and your current position. Sat-Nav for your business Advanced Marketing for Maximum Profits
- 6. Your Business Plan The Essentials 1. Idea What will the business do? 2. Market Who will your customers be? What competition is there? 3. Operations How will you deliver the idea? Promote it? Provide great service? 4. Financials Can you earn more than you spend? How much cash do you need before you generate enough cash internally? 5. Supporters Do you have specialist advisors in each area? Can you partner? Team? 6. Review and Revise Build in measurement, reporting and milestone review Setting it Out 1. Title and Scope Name of Company, Period covered 2. Contents Executive Summary (something to hand to the bank) o Idea, Market, Operations, Financials, Supporters Idea o ‘Elevator Pitch’ why anyone will buy from you - said in one minute or less Market o Customers who? How many? Their profile? Data to back up your guess o Competition Who? How are you different? Strengths & weaknesses? Operations o CEO who? Why best qualified? o Sourcing where you get it and how it is made (applies to services)
- 7. Marketing o How will you promote your offer to your customers? Your plan….. Press, how many press releases? Which publications? Online will you have a website? Blog? Who will you link with? Social Media which? How will you use it? Partners Who will you tie up with selling to same audience? o You know who the customers are. Show how will you talk to them Sales o How will you identify prospects? o How will you follow up prospects? o How will you recycle rejections? o How will you close sales? o How will you handle up-sell? o How will you manage customers? Fulfilment o How will you capture orders? When / how will you get paid? o How will you deliver? o How will you handle enquiries and failures? Infrastructure o Which IT systems will you use? How will you support them? o What staff will you need? Engagement, training, evaluation? o What advisory board will you have? How will that work? o What reporting will you have? How will you review? Re-plan? Manage change?
- 8. Financials o Effort to generate orders Convert effort to cost o Orders generated? Convert orders to £revenue o Cost of sales Match sales with the £costs to supply o Overheads Match staff deployed with cost of employment List all outgoings and costs including rent, utilities, professional services and taxes o Convert the profit and loss to cash flow o Produce a balance sheet o Set Assumptions, inflation, prices & changes
- 9. Key Objectives o Sales growth target o Make price increase stick o New product development o Key marketing achievement (new brochure / website) o Recruit partners o Set up new system o Win investment Specific, Measurable, Achievable, Relevant, Time specific (SMART) Using Your Plan To Raise Finance? AVOID GIVING A PERSONAL GUARANTEE EVER! – THERE WILL ALWAYS BE ANOTHER WAY StartUp Suffolk is a not for profit organisation sponsored by New Media Business Group Enquiries: New Media Business Academy Limited, a not for profit company The Enterprise Centre PO Box 656, Woolpit, Bury St Edmunds IP30 9WR Tel 0203 086 9386 Tim@NewMedia-Group.com