Business plan implementation

Good planning is vital for long-term growth. Research has proven a stable growth over five to ten years in any business was due to good planning. Once you have done the theory side you can move on to business plan implementation, getting closer to the reality of running your own business

A good business plan is:

Well researched

Helps you see areas where your business has been neglected, what your strengths and weaknesses are

Can be used for loan applications

Provides a foundation that future plans can be built on

The components of a business plan

Front page and contents

Name, type of business, address, phone number with a list of all the headings

Introduction

A brief overview, its objectives, the market it will serve and its industry. The form of business eg. Sole trader, close corporation etc. Will it be a new business or a take-over and what are the main objectives in the business.

Marketing Plan

Who needs the product or service, what will you sell, at what price and why?

The Market

Define the market with the size, segmentation and growth rate

The market share objectives for the next five years

How will you attract and satisfy customers

Talk about competition and the need to expand

Product

Describe the product or service with its features and qualities as well as its brand name and packaging characteristics which might cause conflict

Price

List the price of your product or service and state why the customer will be willing to pay the price

Promotion

Advertising, personal selling, internet marketing and seminars

A business mission statement will tell someone about your product or service in a sentence, which should be a well-thought out process.

Place

Delivery times

Distribution channels and the location of the store

It is definitely vital you have a well-researched and thought out business plan, but saying that this will only be the theory side of your business. Making this happen and putting the theory into practice will be the implementation of the business plan and this will be your goal. Without implementation it would be like having a dream.

There are 4 definite stages to any business plan implementation process:

Objectives

objectives should be in point form, clear, concise and to the point. They should be as realistic as possible.

Tasks

Tasks will follow on from your objectives. There is more detail for your to expand on the points that you have gathered from your objectives, but it is still simple to glance over. It is not an essay-type explanation.

Time Allocation

Every task you have should have a time frame that it should be completed in , almost like a goal. Again you should be realistic, but not too relaxed. There are software programs available that can help you with this stage.

Progress

Each task's progress needs to be monitored and when there is a problem with one of the tasks then attention needs to be given to that specific area so it can be sorted out straight away.

It's extremely important to follow these steps in order for your business implementation plan to succeed.

A SWOT Analysis help your business implementation plan

This will assess your strengths and weaknesses. Opportunities and Threats can also be pinpointed in this assessment.

Discuss the industry and the competition that lies within the chosen field and the describe business of your competition in terms of market shares

List the Suppliers you intend using and the means to bargain in order to get the best prices.

List possible substitute products with alternative suppliers

Entry barriers which are always a threat when a new business enters the industry. High capital requirements and competing against top brand names are chief obstacles.

Location Analysis

Describe the premises

Is it rented or owned?

Why is it the first choice and what is premises of your competitors like

Management

Yourself

Convince the reader why you are going to be successful with your business background, education and abilities. Include some personal information

Compile a brief C.V with everyone involved in the business.

Resources Required

The capital required to start the business. Include equipment, premises, wages, stock, working capital and vehicles

Say where your resources are coming from

What funds have you already and what is the loan and how will the loan make your business more profitable

Financial Plan

Draw up forecasts for the next five years with cash flow statement, balance sheet, income statement and capital expense statements.

For the first year of business provide a monthly budget and work out your break-even point. Try and support your figures with industry data.