Resources

Formal Business Plan

Components of a Formal Business Plan

• Vision and Mission
• Strategies - Marketing, Management, Operations, Competitive, Financial
• Action Plan
• Operating Budget

The Vision

• For what purpose does this business exist?
• What passion has pushed me in this direction?
• What beliefs do I hold that support this venture?
• What values will be exhibited in the company?
• What will the business do to help myself and others?
• What will it look like when it's "right" for me?

Mission Statement

• The vision compressed into a couple of sentences.

Marketing Strategy

• Define the need
• Quantify the need
• Is this a good business or just a good idea?
• How is that need being filled now?
• What is my opportunity?
• How big is the window?
• Will it lead to other opportunities?
• How easy a business is it to get into?
• Is it a service/product that I can stay enthusiastic about?
• What image do I need to develop in my written materials?

Financial Strategy

• How much annual income do I need to earn to live?
• What is my alternate source for the first year?
• What are my start-up costs?
• Does success depend on external financing?
• Where will I find that financing?
• Have I registered for GST?  PST?  Company name?
• How am I going to keep good financial records?
• What is the best legal structure for my business?
• When do I need and how do I choose an accountant and lawyer?
• What is my cash flow telling me?
• Receivables/payables management

Expenses always come sooner and are larger than expected.  Revenues always come later and are smaller than expected.

Management Strategy

• Who is the boss?  Who will do what?  Am I good at delegating?
• Will I hire employees or contract out work?
• What human resource policies do I need to be aware of?
• Can I develop results-oriented job descriptions?
• What checks and balances have I put in place?
• How will I manage my time?
• Location/space - what does my client expect?
• Technology requirements
• Do I need and how do I get an advisory board?

Action Plan

• Tactics used to accomplish each strategy - detail
• Provides a date and an individual responsible for each action
• Includes a review schedule so the plan doesn’t wander
• How will I cope with it all?

Developing an Operating Budget

• Gathering the various costs
• Building a spreadsheet
• Tracking actual against budget
• Be realistic about what you can expect
• Translate into a cash flow

Now what?

• Begin!  Just do it!
• Try to spend the bulk of your time doing what you do best
• Review your goals twice a week and always first thing on Monday morning
• Dream big but abandon perfectionism
• Know where your weaknesses and blind spots are
• Hire to your weaknesses, not your strengths
• Speak positively always and you will begin to believe what you hear
• Always work with the best people - let them push you to greatness
• Network, network, network
• Always have your business cards with you
• Take a moment regularly to enjoy your progress!

What's in it for me?

• Is this a business or a hobby?  It's a business if it provides you with a living income, the prospect of selling it for real money, and the capacity to build a retirement fund.
• What plans have you in place to provide for your financial independence?
• Are you educating yourself about how much money you will need to support yourself when you retire?  The earlier you start, the better.