Today we learned about business plan and how we should really write it down. Basically there are total of 10 items to be included in the business plan. First things first why is business plan so important? With business plan you will be able to know which route you set your company towards and how it will even improve. After all, people don’t plan to fail, people fail to plan. This is because they might not know how to plan, if business plan is very weak, they will feel weak about the company. Hence the importance of the business plan.
Business plan allows you to have:
Roadmap in the future (when you want to talk to people about what your company is going to be like in the future, what you want to do, what your company is capable of)
Focus of the company (food? service provider? design?)
Reference for reminder (when bosses quarrelling it will be a good thing, like the disagreement of how the business is being planned. If want to ensure that they are in the alignment look at the business plan if it doesn’t align, can change a bit)
Interest more investors (no man is an island, when you have friends, more hands together, you can reach out a lot more, need more man power)
10 components to identify in business plan, must be visible:
Concept (Company? Business?)
Capital Expenditure (money)
Operational & Recurring Expenses
Revenue/Income Projection (per month? per day?)
Basically the first thing people see is the plan, and the executive summary is like the DNA of it. It is good to make the business plan interesting and to be written nicely so to have a good first impressions for the investors.
One page description of your business plan, provides a summary of the company (in sections/paragraphs). Make sure it is about 1-2 simple sentences per section, don’t go over 1 page. Must be very articulated, show the ability of the entrepreneur(s), what is it that you want to do (clarity and intent). Last piece of the document to be written is the insight to the dna of your company.
Support (facts, you design something so cool? research about it, none other company have. Connection, you have worked with who? principal of designers? Are you very strong as a company.)
Remember to keep it just to one page!
Break down into 2 parts, the trends and gaps.
Trends, how is the industry moving. The industry need services like yours which other company don’t have. What are the current trend people are in need of, other people still don’t have yet.
Gaps what the industry do not have and how you can fill up the gap, you have the solution and idea.
Something that is able to achieve operational advantages. For instance...
How much your company spend per month? If your company use very less money but able to do well, it will be a good selling point.
Configuration of resources, I can customise. If you ask my company to do something, I will do up more services (as a whole package), road A to D. Show something that you can provide than no other have.
Meet the needs of the customers within chosen environment, office space etc. How resourceful are you? how you can even meet their needs
Vision statement, mission statement that reflects you company, value statement.
The mental picture of how your company will be in 5 - 10 years time. If you have a lot and is very far fetch, you have to have a well rounded one, find the basic one.
Mission may not need to highlight on making money but how they want to make people life better and inspirational, creating a social change.
E.g. Starbucks allow many people have jobs.
What you stand for? make social changes? capitalism? is there humanity in it? like the human nature in you.
E.g. apple a commitment to innovation and excellence.
specific performance targets of WHAT you want to accomplish. It must be SMART, specific, measurable, attainable, rewarding, and timed. Market share belong to everyone in the market, and if it means i want to gain more from another company, then we aim to achieve and increase a market share of 10%, Make sure that they are measurable and also specific.
Connect your mission to your vision. It is important to identify the key actions, it must be directional, reasonable, inspiring, visible, and eventual.
Make sure this can be a goal and activity my stake holder of the company can grow, e.g. independent, so that old staff can be senior staff and teach the junior.
Who will buy (write down specifically what are we providing)
What do my clients really want from us
What are we better than our competitor
Efficiency? (do logo design within 1 week, with photography, contact sheet and etc to allow easier way for client to work, push their business forward)
Provide our clients with more values
Where are they now? Growing stage? hot soup stage?
Where do the company want to be
How do we get to the next stage of the goal
Not to forget, we have to make sure that what we write ties back to the vision, mission, values, and Short Term/Long Term objectives.
Operation (do everybody work at certain place?) [organisation behaviour]
Business Development (Research and Dev. if we want to expand it, how can we do it)
Marketing (A&P, advertising and promotion department)
Human Resources (HR) (Take care of all the MCs, your daily work, absence, want to quit, want to apply for the job etc)
Equipment and Leases (Logistics, Inventory Issues) [If no where and nowhere to place it, it is like a storage to keep your bulky equipments]
Legalities (Copyrights, TM etc) [Come and advise you what to do if you get sued
Flowchart, or ORG chart. Defines the different roles and responsibility of the people in the company. It is the hierarchy chat, who is at the top and then break down to different people.
Then put those people whom we want inside the flowchart, though we might not have, but we can still put. The org chart allows you to know what kind of people you should hire at which point. Studio consist of photography, copywriter, and etc.
How much money you have in the company. Refer to this amount that you need to require to start the company. Compile a list of items that need to be paid/bought by month zero. Include business registration fee, office security deposit, insurance, furniture, electricity, utilities, carpark, and equipment etc. Business essentials such as name cards, printing etc, are you making money?
OPERATION AND RECURRING EXPENSES
Money needed to spend to run the business. For e.g. the cleaning services, power supply, equipment, materials (mounting board, double sided tape, and etc), transport and entertainment.
INCOME & REVENUE PROJECTION
Revenue refers to the amount of sales of the month. Net income is the net profit of the company. Income projection show how much you think you are going to earn.
Appendix/Annex. Something that is similar to your business plan, add it in.
Basically business plan sounds like a lot of details to be included but that doesn’t budge me at all. With support of my team mates, I am sure that we will be able to do well on it. We have 4 brains after all! So get to go with it.
As for our CA3, we have decided to work with Quirk Design as we found out that though they have years of experience but they have a lack of variety. For instance their clients seem to be repetitive, and the fact that they are working on the same thing over and over again. Thus we would like to work with them and provide our version of business plan for them.