The Business Planning Process
There are several steps in planning a business. A business plan captures the vision of the owner, CEO or a board of Directors for both short and the long-term future.
The vision answers the question, “Where your business will be in five years?” It’s not a mission statement but is in alignment with it. The Strategic plan is flexible and “live” that is ready to quickly respond to changes in economy, market and threats. The Business Plan is simple to understand with minimum significant training or systems change.
Once the vision is outlined, the company planning process starts. An end result is visualised and the written plan is made. Business plan document serves many purposes. A business plan seeking venture capital funding is very different from an institutional funding or a plan that is focused solely on internal change to guide company’s growth.
The Business’s and Team Biography
The story of any business is an important step that informs aspects of the company. It is important to include profile, aspirations or career biography of the company and its promoters. This is then incorporated into funding presentations, marketing materials or websites.
In this section, it is important to explain why the company is in business by answering the question, “Why this business?” Entrepreneurs are motivated in part by an interest or passion. The story of the business should reflect that commitment and passion.
The company’s core values and mission statement also play a role in the business biography section. Listing of key experiences of the team, the leaders and key personnel add additional value to this section. Detailed descriptions on how all your people will work together as a team for a common cause – sometimes is a make-or-break for investors.
Outline The Business Model
The plan document ncludes a clear explanation of how the business operates on a day-to-day, quarter-on-quarter basis and answers the questions around product or service lines. What the business does, what each team leader does and who these products and services are targeted at and includes profile and data on prospect customers. And lastly this section covers how the business is paid, its price points and payment terms.
The business model is outlined in one page along with all research and supporting documents for the assumptions made.