What do you mean by business planning?
Updated: Mar 25
Business planning is now more essential than ever, but the biggest hurdle many businesses face is not understanding what constitutes a good business plan. One key thing to remember is what are the 5 main elements of a good business plan?
Executive Summary: Think of this as your pitch. Summarise the details of some of the other areas of the business plan here.
Opportunity: What is the problem you are solving? What is your solution to the problem? Who is your target market? And who is the competition?
Execution: How are you going to market and price yourself to solve the problem in a profitable way? What are the key milestones and metrics to measure yourself against?
Company: How is it structured? Who are the key personnel? What are the gaps in the team?
Financial Plan: Year 1 thorough financial budget. Longer term forecasts for years two to five. What funding is needed and when?
Many businesses will write a business plan in their initial startup phase and never revisit them or update of time. Part of the reason for this is because of not understanding the steps involved in updating or reviewing business plans. At Blue Horizon Consulting we are here to help you hold yourself and your business accountable to your own goals and plans so that you can reach your full potential.
Another unspoken area of business planning is why do some business plans fail? Some of the biggest causes for this Blue Horizon can help you identify during your initial phase so you don't have to make costly mistakes down the track. Examples of these are:
Bad business idea: this should be easily identified in elements 2-5 listed above.
Unbalanced team: you may have the best idea and the best marketing plan but if you have holes in key areas of expertise in the product/service you are offering the business is bound to fail. Elements 3 & 4 will help pick these gaps up.
No financial forecasting: key funding decisions may get looked over and before you know it bills are mounting up and the business is struggling to keep its head above water. Every business should be budgeting at least once a year so they can get a rough idea of when money might get tight, and plans to get over of those tricky periods. Element 5 will cover this off.
Not listening to external sources whilst writing a business plan: whether or not you engage with a professional to help you write a business plan listening to external sources helps remove bias and risk to your assumptions. Elements 2 to 4 in particular are opinion based so blocking out other opinions means you are bound to miss something along the way. Whilst Element 5 for most businesses can be quite a complex process. By getting in contact with us you're already working towards not making this key mistake
Whilst 2020 has taught us more than ever to be agile and that plans often go out the window. We still need to ask ourselves how can a business avoid failure in these uncertain times, and the skill to be able to pivot and problem solve in the most efficient way is helped by having solid structures and plans in place.