Start and Grow your own Business
CHECKPOINT 3 ( 3 of 7 ) – CREATE A PLAN TO SUCCEED..
YOUR BUSINESS PLAN
Not having a written Plan is one of the main reasons for start-up businesses being unsuccessful or not even getting started. So whether you are starting a small part-time activity to make some extra cash with a view to developing a business, or you are starting a serious business with premises, investment and staff, you need a plan: and it must be written down .
Whatever the state of your business (for example, planning a start-up, organising to launch, or growing a current business that’s trading, you should write down the basic elements of a plan. It should be only 1 or 2 pages in the first instance.
Dozens of people thinking of starting business, or planning to start business come to start-up meetings, workshops, and other relevant events…. But when asked “do you have a written plan”, the majority say “no”. So most of the advice and information given at the event is wasted, because it does not relate to a specific part of a plan.
Your PLAN must be written down to Include the following:
The product(s) or services
The target markets ( customers )
The sales price(s)
The actual cost of the product or service ( excluding your time )
The nett profit per sale
A profit target with a time scale
Confirming what has to be done to achieve the sales
This drives the need for the following sub plans, with timescales
Sales numbers
Sales outlets ,
Live web site
Marketing ( with costs )
Order taking
Production
Staff
The above usually refers to the start-up or early stages of a business, but if you are looking for loans or investment, a more detailed plan wll be required. An investor or a loan company will want to understand the current state of the business, the experience to date, the business potential, the cash flow, the profit forecasts…
TIMING
And timing is critical: Here’s an example to prove a point. A woman approached us in November 2018. She had set up a beauty business, had rented a premises but was not doing enough business: talking about competition from two nearby beauty salons which were charging very low fees. Using social media facilities, we identified that there were several thousand of her ideal clients within a couple of miles of the premises. With a low cost Facebook campaign she could make contact with these prospects, and coming up to Christmas , this was the ideal time for the beauty business. . The neighbouring salons were not the problem. We made contact again after Christmas, to discover that the business had gone bust, leaving her with a £!4,000 loan to a family member to repay, utility bills to pay , and a premises lease commitment…
Had she done this little bit of market research and got a business plan checked , and had started the marketing at the launch of the business… she would probably have a good business today… The message: seek advice early, and keep seeking advice every step of the way
RECOMMEDED ACTIONS
- To really understand more fully why and how you should create a business plan at whatever stage of your business … Google “ the importance of a Business Plan “
- So create a Plan, take your plan and show it to 3 experienced business people. Getting their advice and ideas. Then applying the result will double your chance of creating a successful business.
- Need help creating a plan, use the email contact below.
TO HELP YOU WITH IDEAS, CONTACTS, INFORMATION, 1-2-1 PLANNING…Use this FREE information line …lots of business experience there to help you achieve your goals or targets
Email : info@croydonbusinesshub.co.uk
www.croydonbusinesshub.co.uk
