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What factors are involved in
creating a good business plan? Is it the length of the plan? The information it
covers? How well it is written; or the brilliance of its strategy. No.
Planning is a process, not just a
plan
A business plan will be hard to
implement unless it is simple, specific, realistic and complete. Even if it is
all these things, a good plan will need someone to follow up and check on it.
The plan depends on the human elements around it, particularly the process of
commitment and involvement, and the tracking and follow-up that comes
afterward. Successful implementation starts
with a good plan. There are elements that will make a plan more likely to be
successfully implemented. Some of the clues to implementation include:
-Is the plan simple? Is it easy
to understand and to act on? Does it communicate its contents easily and
practically?
-Is the plan specific? Are its
objectives concrete and measurable? Does it include specific actions and activities,
each with specific date of completion, specific persons responsible and
specific budgets?
-Is the plan realistic? Are the
sales goals, expense budgets, and milestone dates realistic? Nothing stifles
implementation like unrealistic goals.
-Is the plan complete? Does it
include all the necessary elements? Requirements of a business plan vary,
depending on the context. There is no guarantee, however, that the plan will
work if it doesn’t cover the main bases.
Uses of business plans
Too many people think of business
plans as something you do to start a company, apply for a loan, or find
investors. Yes, they are vital for those purposes, but there’s a lot more to
it. Preparing a business plan is an
organized, logical way to look at all of the important aspects of a business.
First, decide what you will use the plan for, such as to:
-Define and fix objectives, and
programs to achieve those objectives.
-Create regular business review
and course correction.
-Define a new business.
-Support a loan application.
-Define agreements between
partners.
-Set a value on a business for
sale or legal purposes.
-Evaluate a new product line,
promotion, or expansion.
Too many businesses make business
plans only when they have to. Unless a bank or investors want to look at a
business plan, there isn’t likely to be a plan written. The busier you are, the
more you need to plan. If you are always putting out fires, you should build
fire breaks or a sprinkler system. You can lose the whole forest for too much
attention to the individual trees.
Keys to better business plans
Use a business plan to set concrete
goals, responsibilities, and deadlines to guide your business.
A good business plan assigns
tasks to people or departments and sets milestones and deadlines for tracking
implementation.
A practical business plan
includes 10 parts implementation for every one part strategy.
As part of the implementation of
a business plan, it should provide a forum for regular review and course
corrections.
Good business plans are
practical.
Business plan “don’ts”
Don’t use a business plan to show
how much you know about your business. Nobody reads a long-winded business
plan: not bankers, bosses, nor venture capitalists. Years ago, people were
favorably impressed by long plans. Today, nobody is interested in a business
plan more than 50 pages long.
Contact us
If you have further queries,
please contact Tannet
24 hours Malaysia hotline：603-21418908;
24 hours Hong Kong hotline：852-27837818;
24 hours Hong Kong hotline：86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my