Many people think that Business Plans are used only when you are starting a business or applying for funding. The review and modification of your company’s Business Plans should part of your Company’s annual review. The Company’s Business Plan should look up to 5 years into your company’s future. The Business Plan is not a static document, but is to be modified as you learn new information.
The first type of Business Plans that you and your company need to be able to create is the Startup Business Plan. There are many templates and guides on the internet about this type of plan. However the templates and plans skip some of the most important steps that need to be included in a plan.
The financial plan is an area that people gloss over when creating a business plan, but that is the area of your business that will decide if you make it or not. You need to do real research on determining what the real cost are on starting up and running the business. Plus this is the area that investors and banks are going to be going over, so it needs to be as good as possible.
Market research is another area of the business plan that many people do not put a lot of work into. Even if you have been in the industry that you plan to open a business in, remember that most of the people that you are presenting the plan to do not know the industry and will want strong reason why your company will be able to sell its service or product.
In a Business Plan it is always good to address any regulations that govern the type of business that you are starting. If there are potential changes in laws that affect your business in the next few years it is wise to address that in the business plan. Nothing kills the confidence of a lender or investor than when they ask you about a regulation and its potential affect on your business and you cannot give a good explanation.
Aaron Law firm can help you with your Startup Plan by working with you to put together a good concise professionally looking plan that provides the information and presentation that will help you when talking with potential investors and lenders. Through business relationship with other professionals we can connect you with the people who will provide you the best information to build your business plan.
This plan has many names and as many different designs. It can have many titles like a Strategic Plan, 5 Year Plan, or Expansion Plan, but for this article we will call it a Growth Plan.
The start of any plan is the assessment of the company’s current situation. The areas that makes your company different from all of the other companies providing similar products. Assessment the areas that you are strongest in, what areas that you are expecting growth, what areas that you are weak in. As you write your plan that is a key element that you need to incorporate into the plan, and how you get that message across.
The Plan must have a goal. That goal has to be a definite goal, one that is easily communicated to others. The goal must be measurable, if it is not measurable it is no good for this type of plan.
A growth plan needs to have a definite time limit in which the plan is cover. Many growth plans have incremental growth plans in them, setting the stage for the next level of growth. An example would be a Five year plan may be made up of 5 one year growth plans. Look at how rapidly things are changing in your industry and how changes are developing in your business to determine how you setup your growth plan.
The plan is usually modified after it is implemented. It is good to set specific times to review the plan and the progress up to that point and see if modifications need to be made.
A growth plan should cover all aspects of your business that will effect the growth of your business, from marketing to the number of employees that you have. It is important that you look at every part of your business and how it effects your ability to grow.
Call and let Aaron Law Firm help you develop this important area for your company.
Disaster Recovery Plan
The third type of plan is on that most people have not thought about and even less have one in place, the Disaster Recovery Plan. This type of plan can cover many different types of situations depending on what part of the country your are in, type of industry you are in, and how many employees you have. Many companies never recover after a disaster. With a plan you at least have thought about how to recover after the disaster and can quickly start the recovery process.
The most important part of the plan is communication. How are you going to communicate with your employees, your clients and your vendors. Plan for three different types of communication for each of the groups. People that are located near your business may be effected by the same type of disaster that you are experiencing, but people that are in different states may not be impacted by the disaster. So you might need to plan on different ways of for communicating with people in different parts of the country. Speed and accuracy are the two important aspects of communication, your employees need to know as soon as possible what is happening. Things as simple as having a email/text/phone tree or a notification page on your website, twitter or Facebook page can help you quickly communicate information to the groups you are providing information to.
An important facet of the plan to consider is the chain of decision making. commonly called chain of command. Disasters are not planned events; when they happen the people that usually make decisions may not be available. You have to people who can make decisions, know what the parameters of the decision making authority, and know what the overall plans are for the recovery from the disaster.
As part of your plan you need to determine what information your employees will need access immediately after the disaster to keep the company going. Things like payroll records, contact information for clients and vendors, accounting information, product plans and formulas, insurance policies, and governmental agencies’ contacts that your business interacts with. This information needs to be stored off sight or in a secured cloud access. Today’s technology allows you to synch the information in real time so that it can be stored securely on the cloud.
The most important part of a Recovery Plan is for you to start your planning today. Even if it is just sitting down with a pen an paper and making an outline, start working on your Disaster Recovery Plan today.