How Do I Write a Cracking Business Plan?

Written on the 26 October 2011 by Brad Callaughan

By Brad Callaughan


The majority of small businesses, Franchises, or investors will deal with this at some point. A business plan can mean the difference between a good business or a great business. Business planning is an ongoing business activity - you should regularly review and revise your business plan.

I like to look at a business plan as a list of goals, like a road map of how you intend to get there. If you are not sure what to put in, I will list out a few items that will help you write a cracking business plan.

Depending on what type of Franchise business you intend to start, your business plan could include these elements:

• Executive summary - a one-page overview written after your business plan is finalized
• Introduction - explains the purpose and objectives of going into business and why you are franchising
• Marketing analysis - looks at the industry you are entering and how you fit in
• Marketing plan - your marketing strategy as a brand and to attract new franchisees
• Operations plan - how you'll set up the business and develope the franchise system, i.e. structure, location, regulations, Sytems, Processes, Supplies etc
• Management plan - how you'll manage your core business and the franchisees
• Financial plan - how you'll finance your core business, costing and financial projections, ongoing costs for franchise management and support, marketing etc.

Proper business planning is the action of testing various scenarios and deciding on what scenario will be the best for your business. You need to look at "What-if" type scenarios.

Some of the common mistakes I have seen with business plans are: -

1. Not getting professional help - Preparing a business plan can be a daunting task. Seek professional help, especially if you are seeking finance.
2. Not having a clear path set out - this would involve setting out the right goals.
3. Creating incorrect predictions - by nature we are over-ambitious when writing our business plan. Kidding yourself will not help you or your business.
4. Not focusing on Cash Flow - we always want to know our profit, but when starting and running a business your cash flow is more important.
5. Never Reviewing it - you always need to review and upgrade your business plan as you move along. You can then stop making assumptions and use actuals.

Here are my 5 cracking tips to an effective business plan

1. Numerous "what-if" scenarios

A good business plan will always provide for the worst case scenario versus the best case. By testing numerous "what-if "scenarios it will allow you to show the reader how you will overcome them.

2. Follow the formula

Follow the above elements. Investigate, analyze, research, & seek advice to set out your plan within those guidelines.

3. Play to your strengths

If you are weak with numbers get help in that section. Your whole plan has to make sense.

4. Verify your assumptions
 

Always be able to show where your data and figures came from.

5. Be clear, concise and realistic
 

Your figures should be clear, concise and realistic.
 

Brad Callaughan is a specialist in taxation, accounting and business advisory. He is the managing director of Callaughan Partners that was formed to deliver and exceed client's expectations, whilst charging upfront fees. Brad is an avid property investor and renovator. Brad is also a strong force behind the development as well as sitting on the board of the Ross Hutchinson Foundation.
Callaughan Partners was formed to deliver and exceed our client's expectations; the continuation of this is the driving passion and focus of our business.
Brad enjoys developing his own business interests and property portfolio along with his interests in golf, horse and dog racing, sports and fishing.