Business Planning Rationale & Considerations
I. Strategic & Business Plans Are Critical (With the following exception…)
XYZ Company: Which way should I go? Axis: Where do you want to be? XYZ: I’m not sure. Axis: Then it doesn’t matter which way you go.
II. Primary Reasons To Develop A Business Plan
- To map the future in order to get where you need to be “on-time.”
- To support growth & funding, or the “investment” of others in the project.
- To develop & communicate a course of action.
- To help manage a budget & cash.
- To support a strategic launch and or exit.
- To develop: organization, accountability & leadership.
III. Key Considerations When Developing The Plan
- Write from an external perspective with keen analysis and clear thinking.
- Understand and plan for internal and external challenges.
- Research/understand supply side (i.e., manufacturing) and demand side (i.e., sales) issues thoroughly.
- Understand your competition.
- Attention to detail(s) (e.g., credible projections and assumptions, etc.).
- Focus on the opportunity: Unique business propositions…/Will it work?
- Ensure all areas (not just key areas) are covered.
- Exhaustive attention to detail in economic models and financials.
- Executive summary must stand on its own.
- Review the process, and develop adequate feedback loops along the way.
- Assign clear and logical accountability throughout the plan.
IV. Key Components of a Valuable Strategic Business Plan
- Objectives
- Executive Review
- Technology/Manufacturing/Engineering Analysis (e.g., technology, processes, materials, costs, etc.). Test & Re-test this…
- Market Analysis
- Supply & Demand Analysis
- Environmental Analysis
- Company Analysis (i.e., mgt. & org,, IP, funding, history/story, needs, key success factors, etc.)
- Competitive Analysis
- Business & Market Strategy (to manage “thru 7” above)
- SWOT Assessment [carefully developed and answered]
- Business Model
- Financial Analysis / Economic Model
- Tactical Implementation Plan for all Strategies
V. Now ask: “What components of IV are in place and actionable for XYZ Company?”