Would you set out on a journey without a plan - what you wanted to achieve, how you would achieve what you wanted to or balance the risks - pros and cons of taking such a journey?

Of course you would not – even a regular trip to the corner shop for your daily paper has an element of planning – you look at the weather and dress accordingly.

Business planning is the planning for the journey that the business will undertake over the immediate and medium term. A plan can be as detailed or as light as considered appropriate to the size and complexity of the business. The key to a good business plan is that it allows for ideas to be tested, validated and mistakes to be made on paper before implementing any changes, as well as acting as a central point of reference to which to return to monitor, measure and review the effectiveness of the business and its component parts to deliver that which was planned to be delivered – the strategic intent (or mission).

Within the life of a business plan change will need to be accommodated as external as well as internal factors will impact on the plan and influence the thinking and future direction in which the business will need to move to sustain operational effectiveness.

A business plan should have the following headings:

• Business idea.
• Proprietors of the business.
• Resources required.
• Financial planning.
• Marketing.
• Implementation of the proposal – plan.
• Monitoring and control systems.
• Summary.

When considering the headings listed above attention needs to be consistently given to some underlying questions which will define the business, such as:

•  Outputs, inputs, assets and liabilities?
•  Market, segment and market share?
•  Customers, competitors and suppliers?
•  Recent achievements of the business?
•  Main capabilities – strengths of the business?
•  Inherent weaknesses of the business?
•  Current financial position: revenue, cash flow, profit etc?
•  What really makes the business unique?

A sound business plan should ask questions and provide answers which will commit all stakeholders to the journey of achieving the business’s strategic intent.

© 2010 Paul Wood/St Helens Law Ltd

Would you set out on a journey without a plan - what you wanted to achieve, how you would achieve what you wanted to or balance the risks - pros and cons of taking such a journey?

Of course you would not – even a regular trip to the corner shop for your daily paper has an element of planning – you look at the weather and dress accordingly.

Business planning is the planning for the journey that the business will undertake over the immediate and medium term. A plan can be as detailed or as light as considered appropriate to the size and complexity of the business. The key to a good business plan is that it allows for ideas to be tested, validated and mistakes to be made on paper before implementing any changes, as well as acting as a central point of reference to which to return to monitor, measure and review the effectiveness of the business and its component parts to deliver that which was planned to be delivered – the strategic intent (or mission).

Within the life of a business plan change will need to be accommodated as external as well as internal factors will impact on the plan and influence the thinking and future direction in which the business will need to move to sustain operational effectiveness.

A business plan should have the following headings:

• Business idea.
• Proprietors of the business.
• Resources required.
• Financial planning.
• Marketing.
• Implementation of the proposal – plan.
• Monitoring and control systems.
• Summary.

When considering the headings listed above attention needs to be consistently given to some underlying questions which will define the business, such as:

•  Outputs, inputs, assets and liabilities?
•  Market, segment and market share?
•  Customers, competitors and suppliers?
•  Recent achievements of the business?
•  Main capabilities – strengths of the business?
•  Inherent weaknesses of the business?
•  Current financial position: revenue, cash flow, profit etc?
•  What really makes the business unique?

A sound business plan should ask questions and provide answers which will commit all stakeholders to the journey of achieving the business’s strategic intent.

© 2010 Paul Wood/St Helens Law Ltd