Planning can help your small business<\/p>\n
Pri Notowidigdo, The Amrop Hever Group, Global Executive Search,
\ne-mail: jakarta@amrophever.com<\/p>\n
A business plan can be a lifesaver. First of all, it's an
\nexercise in strategic planning and business logistics. Taking the
\ntime and effort to think about your business provides a practical
\nframework to keep you focused.<\/p>\n
Its value is in making things clear for you and your team
\nduring the start-up stage of the business and as the business
\nprogresses. More importantly, the elements of strategy and
\nlogistics are not as important as the actual process of preparing
\nthe business plan itself.<\/p>\n
Another reason for preparing a business plan is to have a
\nmeasure of how you're doing or standards to work against. A
\nbusiness plan sets written goals for you and your team to refer
\nto from time to time. Subsequent financial statements will
\nindicate progress toward achieving those goals. The ultimate
\nobjective is accountability.<\/p>\n
Surprisingly, the strategies contained in the business plan
\nare not as important to knowledgeable bankers and investors as is
\nits quality and professionalism. They know that events will
\ndictate changes in those strategies, and that what is important
\nis the entrepreneur's abilities to manage those changes.<\/p>\n
Business plans can be simple or complex depending on the needs
\nof the entrepreneur. A range of excellent books and business plan
\nsoftware are also readily available in the market. What I am
\noffering here is simply the bare elements of a preliminary
\nbusiness plan for you, the budding entrepreneur, to get excited
\nabout and to help you get started on.<\/p>\n
As your idea for a particular product or service begins to
\ndevelop, try putting your thoughts on paper using the framework
\noutlined below. Key questions are why, what, how, when and who.<\/p>\n
Start with the company itself. Do complete profiles of your
\nkey people and focus on their accomplishments. Show your
\norganization chart along with a statement of your management
\nphilosophy. On your mission, ask yourself why is it in business?
\nWhat makes it different from the rest?<\/p>\n
Then focus on what is your service or product. What are its
\nbenefits? What makes it special? How will it be produced or
\ndistributed? What will be the cost and projected selling price?
\nHow about guarantees and on-going service?<\/p>\n
Evaluate your market by doing an industry overview. Size of
\nmarket? Growth prospects? How competitive is the market? Who are
\nyour target customers? Why would they consider your service or
\nproduct? Which of your customer's needs will your product or
\nservice fulfill?<\/p>\n
A critical consideration is the financial aspect. Financial
\norganization? Amount of investment? Sources of funding? Financial
\nprojections. Projected profit and loss statements and balance
\nsheets for three to five years? Compensation? Salaries? Benefits?<\/p>\n
Planning, as every successful entrepreneur has learned, is the
\nantidote for bad luck. This means that if you want your small
\nbusiness (or any business, for that matter) to succeed, or at
\nleast have a high probability of succeeding, then you must have a
\nbusiness plan.<\/p>",
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