Business plan considerations

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

  1. To map the future in order to get where you need to be “on-time.”
  2. To support growth & funding, or the “investment” of others in the project.
  3. To develop & communicate a course of action.
  4. To help manage a budget & cash.
  5. To support a strategic launch and or exit.
  6. To develop: organization, accountability & leadership.

III. Key Considerations When Developing The Plan

  1. Write from an external perspective with keen analysis and clear thinking.
  2. Understand and plan for internal and external challenges.
  3. Research/understand supply side (i.e., manufacturing) and demand side (i.e., sales) issues thoroughly.
  4. Understand your competition.
  5. Attention to detail(s) (e.g., credible projections and assumptions, etc.).
  6. Focus on the opportunity: Unique business propositions…/Will it work?
  7. Ensure all areas (not just key areas) are covered.
  8. Exhaustive attention to detail in economic models and financials.
  9. Executive summary must stand on its own.
  10. Review the process, and develop adequate feedback loops along the way.
  11. Assign clear and logical accountability throughout the plan.

IV. Key Components of a Valuable Strategic Business Plan

  1. Objectives
  2. Executive Review
  3. Technology/Manufacturing/Engineering Analysis (e.g., technology, processes, materials, costs, etc.). Test & Re-test this…
  4. Market Analysis
  5. Supply & Demand Analysis
  6. Environmental Analysis
  7. Company Analysis (i.e., mgt. & org,, IP, funding, history/story, needs, key success factors, etc.)
  8. Competitive Analysis
  9. Business & Market Strategy (to manage “thru 7” above)
  10. SWOT Assessment [carefully developed and answered]
  11. Business Model
  12. Financial Analysis / Economic Model
  13. Tactical Implementation Plan for all Strategies

V. Now ask: “What components of IV are in place and actionable for XYZ Company?”

Leave a Comment

Your email address will not be published. Required fields are marked *