We all need a place to start when managing a business and also a system of accountability to ensure that we are working towards achieving our goals. I have developed an easily understood system that can be used to ensure that all your effort will be used to achieve business objectives effectively.
Business Objectives
Vision statement – explains the end state of your business or in other words what the business will be like when it achieves its ideal state. e.g. Be the most sought after day care centre in the East Coast
Mission statement – what will you do to achieve the vision statement – mention in exact terms what needs to be done to reach the status given in the vision statement.
e.g. The restaurant will serve up the most unique fusion food based on exacting standards set by award winning celebrity chefs
Core business processes – are the things that need to be done most effectively or excellently in order to achieve the mission statement set out. This can be any three to a maximum of eight business processes.
Critical success factors – an explanation of what needs to be done at the core business process in order to ensure that core business processes are being managed properly.
Key performance indicators – or KPIs are ways that critical success factors can be measured in an way that can be understood by everyone in the organisation so that all effort will be spent in a way that ensures goal congruence.
At the time that you are creating the business plan the investors will need to know what type of assets need to be purchased to ensure that business goals are realised. So prepare a simple list as set out below:
Project cost Estimate
Office space -Lease cost
Cost of computer hardware and software
Cost of furniture
Fixtures and fittings cost
Vehicles lease cost
Staff training cost
Preliminary expenses including staff salaries
Preliminary interest costs
Cost of plant and machinery
Working capital requirement e.g. raw material, receivables, stocks and tools
Make a detailed estimate of what will be needed – best to use a spread sheet to keep track of all the items and the spreadsheet can be updated as and when the cost quotations are received.
Once you have made a list of the things that will be needed and the cost of each item – then move onto how you will finance the total estimated project cost.
Means of project financing
Own investment
Venture capital or Investors equity
Bank loan
Bank overdraft
Creditors or supplier credit
Factoring credit
Export loans
Your ability to raise the above funds will depend to a great extent on your ability to convince investors and the bank by presenting a good business plan outlining in detail how the business will be implemented.
Also take a look at this business plan format before deciding on the best template.