The Business Plan Format You Choose Absolutely Must Address These 4 Key Areas

Writing a business plan format in a simplistic style so it can be read & understood by all those involved, yet not overly simple so it lacks credibility, is not easy. When you consider that it may be read by an attorney, a banker, financiers, your husband or wife and whoever else, you can see the problems that may arise.

The business plan format that you choose needs to be set out in a consistent, logical manner so it flows smoothly from start to finish and, more importantly, it must address four key areas.

When addressed correctly, these four areas will ensure that your business is built on a solid base and it will run efficiently & effectively from top to bottom, day in, day out. Within each of these four key areas there are multiple points which address the majority of issues & hurdles that you will encounter in your business.

Here are the four key areas I refer to:

BUSINESS PLAN FORMAT KEY AREA 1: People & Education.

Always, always, always employ the best possible person for the job, then keep growing them through education. They may cost more but over time you will recoup the extra cost over & over again. Following are some suggestions for attracting and retaining the best people:

Run an ongoing training program
Develop a team social club
Subscribe to educational newsletters, magazines, etc
Run team building training programs
Develop a conflict resolution system
Hold regular team meetings
Develop a system for recognition & remuneration
Build career planning within the company
Set company & individual team member goals
Run time management training
Develop positional 'how to' manuals
Introduce ongoing team development

BUSINESS PLAN FORMAT KEY AREA 2: Delivery & Distribution

It's one thing having the best people at the front end winning the business, but it's another issue making sure the back end keeps up. Quality of stock, continuity of supply & timely delivery can make or break your business. Here's some points to think about:

Work towards paperless systems
Deliver your service with systematic consistency
Review product packaging for safer delivery
Reorganise stock according to turnover
Simplify your order pick & pack process
Fore3cast stock movements
Introduce a purchasing & stock receiving system
Complete regular stock takes
Quantify service and/or product delivery costs
Measure quality & professionalism of service delivery
Measure & use re-order levels
Implement an order tracking system

BUSINESS PLAN FORMAT KEY AREA 3: Testing & Measuring

Here's an extremely important area that many business owners simply ignore. Testing & measuring in all areas of your business needs to be mandatory. From advertising response, to customer transactions, to maintaining an asset register, to NOT test & measure is to place your business in the hands of someone else. Consider these:

Complete & retain monthly & half yearly budgets
Measure conversion rates for every sales person
Develop a purchasing system for internal purchases
Develop & maintain a marketing campaign analysis
Keep a record of profit margins
Continuously measure the quantity & origin of all leads
Constantly monitor credit control and the age of your accounts
Measure the average dollar sale for each team member
Record the number of transactions for each customer
Complete a monthly balance sheet
Measure key performance indicators in all areas of the business
Undertake regular stock take control check-ups
Maintain an asset register that includes depreciation

BUSINESS PLAN FORMAT KEY AREA 4: Systems & Technology

The people run the system & the system runs the businesses. The better & more efficient the system is, the less educated therefore the less costly the staff is, that runs it. Having the most suitable systems, running on the latest technology platforms, is paramount to the success of any business. Here's a check list to ponder:

Schedule & complete regular maintenance on all equipment
Use computer invoicing & creditor monitoring
Run a computerized stock control system
Complete systems training & induction programs
Use the latest computer programs
Review phone & fax systems
Implement a computer back-up system
Document & chart work flow processes
Document sales & marketing systems
Document information flow processes
Use rosters & schedules for repetitive tasksComplete a policy & procedure manual
Complete a machinery automation & update schedule
Document accounting systems
Prioritize extraordinary tasks

So, there you have it. If you can successfully address these four key areas in your business plan format, you'll be way ahead of the competition. That I can guarantee.

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