Steps in planning (6)
1. Forecasting
2. Setting aims + objectives
3. Devising strategies
4. Developing policies + procedures
5. Prioritising
6. Developing budgets
Strategic planning
- Long term ( 2 -5 years )
- Whole business planning
- Long term goals
Tactical planning
- (1 - 2 years)
- Steps to help achieve strategic plan
Operational planning
- ( short term)
- Day to day organisation / procedures
- Adds up to achievement of long term goals
Components of a business plan
1. Cover page
2. Executive summary
3. Mission statement / vision statement
4. Business profile
5. Outline of products and services
6. Marketing plan
7. Operational plan
8. Financial plan
9. Appendices
Cover page
- Name of business
- Names of people who involved
Executive summary
- Summary of each section of plan
- So anyone can quickly see everything that is being proposed
- Written last
- Persuades people to read the whole plan
Mission statement
- What business has to offer to the market
- Overall goals for business
- Conveys intended business image
- Contains intended market/ customers, reference of product being sold, reference to location
- Business values and philosophy
Business profile
Brief outline of business includes:
- objectives
- why and how it will succeed
- list of main contributors
- outline of structure
- location
- experience and qualifications of key people involved
- main activities and products offered
- unique features
- date established
What does the marketing plan contain?
- description of the market: target customers, size of market, trends
- industry analysis: bench mark of business in that market, ( size, profits, number of business in market)
- current market trends + analysed
- profile of customers ( age, lifestyle, income)
-SWOT analysis
- pricing structure
-how it intends to promote and draw in customers
- methods of sale
- intended marketing strategy
SWOT analysis
Strengths, weakness,opportunities, threats for the business
Marketing plan
The plan that sets out marketing objectives and strategies for the business. Planning how the business will compete in the market
Operational plan
How the business will actually operate. People and process to how the business will achieve their goals
What does the operational plan include? ( 4)
1. Regulatory strategy
2. Production process
3. Quality assurance systems
4. Analysis of people
Regulatory strategy
How business will comply with rules and laws:
- location ( regulations)
- occupational health and safety
- employee relations laws
- labelling requirements
- storage and handling of dangerous goods
- licensing and registration
Production process
- step by step process of how the business will operate
eg welcome customers, seat them, wash hair ect
Quality assurance systems
Process put in place to make sure business meets standards of product and service quality. And is consistent and high
Analysis of people
- Personal skills analysis of people involved
Financial plan includes:
- analysis of current financial position of business ( funds available ect )
- income and expenditure predictions for first 5 years
- estimated profits and losses
- expected cash flow
- break even analysis
- Extra stuff:
- brochures
- patents or trademarks
Why is planning important?
- To establish its objectives and goals
- Figure out how they will be reached
- Who will be responsible for each aspects of the plan
- To estimate a time frame for goals
- To determine whether the business will be financially viable
- Comes up with vision
- Sets focus to make decisions
- Helps identify strengths and weakness of the business and how to improve
- Help the business acquire a loan if necessary