1.08 - Preparing business plans
Use the guide below as a review of what needs to happen when you are preparing or reviewing your business plan.
Quick guide for preparing a business plan
1. Identify what you want to achieve
- What is the purpose of the enterprise?
- What is the scale of the enterprise?
- What resources do you have or will you require?
- What are the critical factors for achieving the desired product and profitability?
2. Identify clients and customers (suppliers)
- Which clients (suppliers) will provide the services, collaboration and expertise your business will need?
- What are the requirements and product specifications required by your customers?
3. Identify the key financial and production risks
- How will you know first if things are going wrong?
- What can be done to minimise the risks?
4. Write your plan based on available information, practical experience, and financial and market research
- Prepare a detailed operational plan to account for the scale of the operation.
- Outline the procedures, labour requirements, target market specifications and financial involvement to be used.
- Prepare a detailed budget that includes likely variables in costs and returns.
- Specify targets to be achieved.
- At critical stages in the production cycle, have a backup plan that includes possible exit strategies.
- Determine an appropriate recording system to enable ongoing monitoring and financial analysis.
5. Review the plan with an independent person
- Seek assistance from a technical and financial adviser or industry representative familiar with the proposed enterprise.
6. Periodically update the plan to retain relevance
- Review and update the plan as technical, financial and operational changes occur.