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Developing a Plan for your Business

Developing a Plan for your Business

Business planning has 3 stages:

  1. Develop your business models
  2. Develop your business strategy
  3. Develop your business plan

Business Models

Yes models, you will probably need a model for each of your product sets. Why is that? Because different product sets will or could have different markets / market segments, different target customers (with different needs addressed), different value proposition, etc.

Your business models should include:

  • Customer Segments: Who are your customers? What are their needs that you address?
  • Value Propositions: Why do they buy from you? What’s different about your offering?
  • Channels: How do you promote, sell and deliver your products and services? How effectively?
  • Customer Relationships: How do you manage the on-going relationship with your customers?
  • Revenue Streams: What value are you paid for? How are you paid? What is your pricing strategy?
  • Key Activities: What are the things you must do well to succeed?
  • Key Resources: What assets must the business have to perform its key tasks?
  • Key Partnerships: Who are your key strategic partners? What do/could you outsource?
  • Cost Structure: What are the business’ major cost drivers? What are the cost of key resources & activities?

Business Strategy

When you have your business models in place you can develop your strategic plan - Your business models are your starting point.

  • What is your long term Vision for this company?
  • What are your 3-5 year goals?
  • What strategies will you employ?
  • How will you change your business models, and what new models will you introduce?
  • What are the programmes and actions to implement your plan and what resources will you need?

Business Plan

Your business plan is a summary of your business models, where you are now – your markets, customers and proposition, and your business strategy where you are going - your 3-5 year goals. It will include your 12 month marketing plan and revenue projections.

All of this is translated into the financial viability analysis - what are the financial implications for supporting your business models and implementing your strategic plan for the next 12 months? It will include a monthly income statement, expenditure budgets and cash flow forecast. If you are a start-up (or implementing new business models) you should include a break-even analysis.

Many companies think strategic planning is about manipulating the financials, others like to plan without understanding their business thoroughly enough. Successful planning means understanding your business now, knowing where you want to take it and how, and understanding the financial implications – don’t take short cuts.

Roy O’Neil

07958 614398

0203 826 8262

Part of the Branduin Business Support Group

Roy O’Neil

07958 614398

0203 826 8262

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