business planning part one.ppt
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Business Planning
Institute for Certified Business Consultants
Richard A. Quinn
Agenda
Part One:Introduction – Content – ExpectationsThe Feasibility Study – friend or foe?Strategic Planning
After Lunch:
Part Two:Developing a Business PlanFinding resourcesWrap-up
Assessment Strategy
Assessment Methods: Participants must complete a variety of assessment methods that will include:
Written short answers
Practical exercises
Case studies
Projects
Simulation
Introduction
The objective of this module is to equip the student with the Business Planning skills necessary to assist the small business owner/ manager to:Recognize the importance of business planning to the success of the small business;Apply the knowledge and skills of business planning to the benefit of the small business.
Feasibility Study
Starting a new business
Buying an established business
Acquiring a franchise
Expanding an existing business
Doing business overseas
Strategic Planning
Establishing goals
SWOT analysis
Diagnostic assessment
Operational planning
Developing a Business Plan
Format for a business plan
Role of the business plan in an on-going business
Avoiding fatal errors in the plan
Why do I need a business plan?
Realism
Outside advice
Recognize change
Balance growth and opportunities
Create a results-oriented business
Benefits of Business Planning
Reduce “firefighting”
Justify plans and actions
Test ideas before you write a big check to pay for them
Help focus ability and commitment
The Feasibility Study
It’s not just for start-ups
It is a form of planning that examinesA new business idea
Evaluating an existing business
Acquiring a franchise
Assess the introduction of a new product or service
Consider expansion potential
Identify new markets to enable diversification
Starting a new business
To determine the feasibility of starting up a completely new venture, there is a need to gather information that will prove the business idea is financially viable and that there is a profit to be made by pursuing it.
Evaluating an established business
What is the market demand and need for this product/service?Can a market be created?What is the level of competition?Is the market growing, static or declining?What is the anticipated selling price?What are the costs involved
to produceto operateto distributeto market?
What could the business yield in terms of profit and is that sufficient reward?How much financing will be required and is it possible to acquire it?What legal requirements will apply?Is there any special experience or technical expertise required?
Acquiring a franchise
A franchise is a business arrangement where the franchisee (franchise buyer) is granted the right by the franchisor (franchise seller) to manufacture or sell the product/service of the franchisor within a certain area. Franchises can involve:
a system; a unique method of doing business (e.g. motels or fast food)a product; the distribution of products (e.g. cars or petrol)a manufacturing process: the product is manufactured under license (e.g. soft drinks). The benefits of franchising vs. bootstrapping a new business
Exercise One
Develop a feasibility study before lunch
Strategic Planning
This type of planning is designed to give a business direction and purpose over the long term. It attempts to look beyond the current range of business activities and ask your clients questions such as:
What are your goals?Are you in the right business?What is happening to your market in the long term?What is the outlook for your present product/service? Will it become obsolete?
The strategic planning process:
In formulating a long range plan, the small business owner should follow this series of steps.
Set business objectives.Set long range goals.Conduct a SWOT analysis/situational analysis.Develop strategies.Develop an operational plan.Implement your planDevelop an action plan and methods to evaluate performance
Setting Business Objectives
What is the business there for?
Why was it created?
What are the expectations of the owners?
How will the business be conducted?
What codes of practice will be adopted?
What will be the business philosophy?
Is there a commitment to quality, high ethical standards, environmental protection or other ideals?
Establishing long-term goals
How far is the future from here?
Mission – What you’re going to provide
Vision – What you want to be when you grow up
Purpose – Why you’re doing all of this work anyway
The SWOT analysis
Why do I need one?
Strengths and Weaknesses
Threats and Opportunities
Who owns what and why
Value of a SWOT analysis
Developing Strategies
Developing an operational plan
Setting achievable targets
Identifying resources and the means available to achieve targets
Provides methods of control and feedback
What’s Next?
Consider it “Homework”:
Identify a business opportunity and create a feasibility study in one of the markets where you have consulted previously
Conduct a SWOT analysis for that business
This Afternoon:
The written Business Plan
Getting help and finding resources
Wrap-up