write your business plan today
TRANSCRIPT
By
Boomy Tokan
Maps out the journey in detail.
Shows you what resources will be needed to make the plan succeed.
Shows realistic time of success.
Shows the weaknesses of the plan and helps to overcome them BEFORE THEY ARE PUT INTO ACTION.
A useful/necessary tool required by potential investors.
Useful tool in persuading those with the necessary manpower/skill of your seriousness and commitment.
Fail on paper – a chance for trial AND error before you commit resources to the project.
Benefit from the process
Marketing plan
• (What you want to do)
Operations plan
• (How you want to do it)
Financial plan• (How much it will cost)
Appendices
• (What shows you can)
Introduction/Executive Summary
(summary of all aspects. Include Risks)
Marketing plan
• (industry overview/sector overview, competitors, business to business, consumers, marketing strategy – product, place, price, promotion, growth strategy) .
Operations plan
• (structure of the business, Management, training requirements, equipment needs, insurances)
Financial plan• (survival budgets, cash
flow forecast, profit and loss).
Appendices
• (cv, letters of intent and recommendation).
(summary of all aspects. Include Risks)
Introduction/Executive Summary
Introduction/Executive Summary
Write it first or write it last
It must include:
- Business background and experience
- The Management Team
- The opportunity and how you plan to exploit it
- The market, your uniqueness and route-to-market
- Risks and how you plan to mitigate them
- Potential profit
- How much do you need, your investment, payback period and exit strategy
Industry overview
• Past
• Present
• Future
Sector overview
• Past
• Present
• Future
Competitors
• “an important factor that will influence the eventual success or failure of any business in any market” (principles of marketing- f. brassington & s. pettitt)
TYPES OF COMPITITORS
Future competitors
Indirect
Direct
S.W.O.T. Manufacturers Relationships Finance Suppliers
Consumers Promotion Strategy
Geographical Coverage
Product Range
Culture
Staff Size
Cost Structure
ReputationOwnership
Distributors Used
Segment Served
Motivators Beyond Money
ManagementIndustry Opinion
Why Your Competitors Are Valuable To You?
Part 1By
Boomy Tokan
Types Of Competitors
Direct Competitors
Indirect Competitors
Future Competitors
2 Major Reasons
Competition is a proof that a market exists
Competition shows you what is possible
By
Boomy Tokan
2 More Reasons
Competition compels you to become more creative
Competition ensures customers receive better services
By
Boomy Tokan
2 Mediums
Read everything you can
Visit them physically
By
Boomy Tokan
2 More Mediums Use their products
Obtain their financial accounts
Do some voluntary
work/
Part time Work
Shared Customers
Shared Accountants
LawyersSuppliers
Reports
Exhibitions
Websites, Blogs & other
Online Sources
Visit Local Stores
Distributors
Big/Small
Businesses
Suppliers
Consumers:
•Past Needs
•Present Need
•Future Needs
•Who Are They
•Where Are They
•What Do They Buy
• In What Quantities
•How Often Do They Buy
•Age Group
•Education
•How Will I Market To Them
•Why Are They Buying From The Competitor
• Income
•Favourite DJ
•Radio Station
•TV Program
Consumers
Write A Profile Of Your Typical Customer
Product Benefits
How is it made?
What is it made of?
How can the benefits
be sold?
Does it meet expectation of
customers?
What advantage will
it have over competitors products?
What is unique
about your product?
Why should customers buy your
products?
Work From Home
Tube lines
Buses & Trains
Proximity to potential customers
Any other advantages
Using A Pricing Structure
Total Cost
Competitors Price
Ability for customers to pay
• Standard
• Medium
• Average• Discounted
Newspapers, Radio, Direct mail ,TV and WOM
In Store promotion
Press – editorial
Advertising
Expert Presence On The Internet
Flyers
How?
With whom, Self or, other Platforms &
methods?
Cost?
How?
Use A Focused Group
Use Your Target Market
What To Consider #1
Does the name communicate what the business does?
Is there anyone else using the same name?
What To Consider #2 Availability with authorised registers?
Does it solve a problem potential customers may have?
Does it communicate authority?
What To Consider #3 Easily translated to image?
Can I get a .com or any other domains?
Getting Started
What To do
Write down as many names as possible
Try them out with potential clients
Use the keyword in that name
*******Now Go Online*********
Online Help
Final Points! Always niche their products
A name that communicates:
Online Traffic = More Clients = More
Money
• Sole trader• Partnership
• Ltd.
Structure of the business
• What are they?
Aadvantages and Disadvantages
• Who are those that will advise you?
• What have they achieved?
Management
• No. of staff• Type of staff
• Pay of staff
STAFF
• When• Cost
• Where.
Training Requirements
• Where• Cost
• When.
Exhibitions
• Quotations• Where
Equipment needs
• What are they?
Alternatives
• Types• Where
• When
• Cost.
Insurances Other
Monthly outgoings
Survival budgets 12 months
projectionsCash flow forecast Annual
Profit and loss
By
Boomy Tokan
Cashflow is the flow of cash In and Out of your business in a given period
Cashflow is different to Profit and Loss Account
Cash is King – Make it the King of Your Business
The cashflow forecast can be quite sobering
- brings to bear the financial realities of a
business.
Why You Need To Know
Level 1: Income
Level 2: Expenses
Level 3: The difference between the Income and Expenses as well as carry over from the previous month
3 Parts To A Cashflow Forecast
By
Boomy Tokan
Some assumptions
Most from testing and research
Some from Competitors
The Source Of Your Figures
By
Boomy Tokan
By
Boomy Tokan
Send out your invoices on time
Offer discounts for early payment
Engage in Trade and Cash works
Level 1 – Improving Your Income
Get paid a deposit before you start the work
Get paid in full before you start the job
Stop working with big businesses that take 90 days to pay!!!
Level 1 – Improving Your Income
Spread your purchase cost
Get longer payment periods
Get better deals on utilities
Longer repayment period
Level 2 – Improving Your Expenses Section
Pay less wages
Take less money out of the business
Use contract workers from places like Fiverr.com, Elance.com, Odesk.com
Level 2 – Improving Your Expenses Section
Understand your bottom-line
Use this to determine the amount of money needed
Level 3 – The Differential Section
Recent CV.
Letters of intent: - From customers who are interested in purchasing your product or using your service.
Letters of recommendation from people who know you professionally.
Other supporting information
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