1.10 - Preparing Business plans

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Use the guide below as a review of what needs to happen when you are preparing or reviewing your business plan.

Quick guide for preparing a business plan

1. Identify what you want to achieve

  • What is the purpose of the enterprise?
  • What is the scale of the enterprise?
  • What resources do you have or will you require?
  • What are the critical factors for achieving the desired product and profitability?

2. Identify clients and customers (suppliers)

  • Which clients (suppliers) will provide the services, collaboration and expertise your business will need?
  • What are the requirements and product specifications required by your customers?

3. Identify the key financial and production risks

  • How will you know first if things are going wrong?
  • What can be done to minimise the risks?

4. Write your plan based on available information, practical experience, and financial and market research

  • Prepare a detailed operational plan to account for the scale of the operation.
  • Outline the procedures, labour requirements, target market specifications and financial involvement to be used.
  • Prepare a detailed budget that includes likely variables in costs and returns.
  • Specify targets to be achieved.
  • At critical stages in the production cycle, have a backup plan that includes possible exit strategies.
  • Determine an appropriate recording system to enable ongoing monitoring and financial analysis.

5. Review the plan with an independent person

  • Seek assistance from a technical and financial adviser or industry representative familiar with the proposed enterprise.

6. Periodically update the plan to retain relevance

  • Review and update the plan as technical, financial and operational changes occur.