The Tribune

As the month of October comes to a close, the planning process for most businesses is being tidied up by conscientious owners. They are not taking a gamble on success in 2016 but, instead, are being very deliberate in ensuring success.

The truth is that no one knows what the future holds and, if recession, war or some other economic peril were to surface, already-struggling companies need something more than a wing and a prayer to sustain their businesses.

This week, I offer a basic and general business plan template that every company (small, medium or large) can use to chart the four quarters of 2016. Here it is:

1. Executive Summary

The executive summary should excite and motivate, giving:

• A concise explanation of the business

• A description of the market size and market need for the business

• A discussion of how the company is uniquely qualified to fulfill this need

• A brief history of the establishment

1. Company

analysis

This section must outline the company’s logistics profile, including:

• Date of formation

• Previous accomplishments

• Legal structure or type of business (specific licensing information etc)

• Office location(s)

• Company’s leadership structure

• Number of employees

• Business stage (where are you from inception?)

• What are the specific and unique qualifications giving your company the competitive advantage?

1. Market Analysis

This is the economic environment in which the company will be operating.

• Begin by looking at the market size

• Now review trends relating to your field

• What is the current state of affairs in the economy and consumer market?

• Identify your source of data

1. Customer

Analysis

• First, identify your customer

• Then, profile your customers

• Consider what is critical to your customers

• Next, you must determine how prepared you are to meet the needs of customers

• Finally, you must determine how you will retain your customers

1. Competitive

Analysis

The most suitable definition of competition in business is any service or product that a customer can use to fulfill the same needs that the company fulfills.

• Provide a thorough list of competitors, labelling them as direct or indirect

• Describe your key competitors and highlight your competitive advantage over each of them

1. Market Plan

The Marketing Plan demonstrates how a company will penetrate the market with its products and services. It usually includes ‘the four P’s’ – Product, Promotions, Price and Place.

• Product: What product have you placed on the market, and what expansion plans do you have?

• Promotions: What might induce a customer to engage your business?

• Price: What are the price points at which the products and services are to be sold? What are the market drivers on price?

• Place: How will the products and services be delivered to customers? How convenient is it to travel for your product?

1. Operations and

Management Plan

This part of the business plan, and maps out how you execute your vision in the short and long-term.

• What processes have to be performed every day to satisfy guests and secure revenue?

• What overall milestones must the business attain in order to be successful?

• Who are the key players in your management team identified to make this happen?

• Describe how each team member contributes to critical company goals.

1. The financial

plan

This should realistically represent how the company will make money for all its beneficiaries, particularly the investors.

It must show:

• Detailed revenue streams from sales of products and services

• Understand the fundamentals of creating and reading a basic profit and loss statement

• Initial capital investments

• Sources and uses of funds

• Appraised value of fixed and current assets

• Validating assumptions and projections of operating margins and expenditures (utilities, salary, depreciation of assets, theft, etc)

• An exit strategy. (What is the plan to pack up the operation, with everyone getting quick returns on their investments?)

1. Additional/

Appendix

• Copy of the Business Licence, zoning restrictions etc.

• Partnership Agreements and/or Customer Letters

• Expanded Competitor Reviews or benchmark studies

• Training certificates/ company awards

• Customer Lists

Whether this is done in narrative form or with the use of graphs and charts, and scientific instruments and jargon, the blessing and benefit is simply in doing it and using it.

Once the plan has been completed the true value to the company is how well it is communicated and used throughout the course of the year.

For expert assistance in completing well-structured business plans, contact via email: tcconsulants@coralwave.com or call 242. 455.5208.

• NB: Ian R. Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@coralwave.com.