Business Planning

1. Business Planning Institute for Certified Business Consultants Richard A. Quinn

2. Agenda Part One: • Introduction – Content – Expectations • The Feasibility Study – friend or foe? • Strategic Planning After Lunch: Part Two: • Developing a Business Plan • Finding resources • Wrap-up

3. Assessment Strategy Assessment Methods: Participants must complete a variety of assessment methods that will include: • Written short answers • Practical exercises • Case studies • Projects • Simulation

4. Introduction The objective of this module is to equip the student with the Business Planningskills necessary to assist the small business owner/ manager to: • Recognize the importance of business planning to the success of the small business; • Apply the knowledge and skills of business planning to the benefit of the small business.

5. Feasibility Study • Starting a new business • Buying an established business • Acquiring a franchise • Expanding an existing business • Doing business overseas

6. Strategic Planning • Establishing goals • SWOT analysis • Diagnostic assessment • Operational planning

7. Developing a Business Plan • Format for a business plan • Role of the business plan in an on-going business • Avoiding fatal errors in the plan

8. Why do I need a business plan? • Realism • Outside advice • Recognize change • Balance growth and opportunities • Create a results-oriented business

9. Benefits of Business Planning • Reduce “firefighting” • Justify plans and actions • Test ideas before you write a big check to pay for them • Help focus ability and commitment

10. The Feasibility Study • It’s not just for start-ups • It is a form of planning that examines • A new business idea • Evaluating an existing business • Acquiring a franchise • Assess the introduction of a new product or service • Consider expansion potential • Identify new markets to enable diversification

11. Starting a new business • To determine the feasibility of starting up a completely new venture, there is a need to gather information that will prove the business idea is financially viable and that there is a profit to be made by pursuing it.

12. Evaluating an established business • What is the market demand and need for this product/service? • Can a market be created? • What is the level of competition? • Is the market growing, static or declining? • What is the anticipated selling price? • What are the costs involved • to produce • to operate • to distribute • to market? • What could the business yield in terms of profit and is that sufficient reward? • How much financing will be required and is it possible to acquire it? • What legal requirements will apply? • Is there any special experience or technical expertise required?

13. Acquiring a franchise A franchise is a business arrangement where the franchisee (franchise buyer) is granted the right by the franchisor (franchise seller) to manufacture or sell the product/service of the franchisor within a certain area. Franchises can involve: • a system; a unique method of doing business (e.g. motels or fast food) • a product; the distribution of products (e.g. cars or petrol) • a manufacturing process: the product is manufactured under license (e.g. soft drinks). • The benefits of franchising vs. bootstrapping a new business

14. Exercise One • Develop a feasibility study before lunch

15. Strategic Planning This type of planning is designed to give a business direction and purpose over the long term. It attempts to look beyond the current range of business activities and ask your clients questions such as: • What are your goals? • Are you in the right business? • What is happening to your market in the long term? • What is the outlook for your present product/service? Will it become obsolete?

16. The strategic planning process: In formulating a long range plan, the small business owner should follow this series of steps. • Set business objectives. • Set long range goals. • Conduct a SWOT analysis/situational analysis. • Develop strategies. • Develop an operational plan. • Implement your plan • Develop an action plan and methods to evaluate performance

17. Setting Business Objectives • What is the business there for? • Why was it created? • What are the expectations of the owners? • How will the business be conducted? • What codes of practice will be adopted? • What will be the business philosophy? • Is there a commitment to quality, high ethical standards, environmental protection or other ideals?

18. Establishing long-term goals • How far is the future from here? • Mission – What you’re going to provide • Vision – What you want to be when you grow up • Purpose – Why you’re doing all of this work anyway

19. The SWOT analysis • Why do I need one? • Strengths and Weaknesses • Threats and Opportunities • Who owns what and why

20. Value of a SWOT analysis • Developing Strategies • Developing an operational plan • Setting achievable targets • Identifying resources and the means available to achieve targets • Provides methods of control and feedback

21. What’s Next? Consider it “Homework”: • Identify a business opportunity and create a feasibility study in one of the markets where you have consulted previously • Conduct a SWOT analysis for that business

22. This Afternoon: • The written Business Plan • Getting help and finding resources • Wrap-up