Planning for Success - Tarnia Gurney

Preparation for your business:

Did you know:

There was a study complete at Harvard Business School. The study was done over a twenty-five year period with 1,600 businesses. These were the results:
–70% of the businesses in the study had no written or verbal plan
–27% of the businesses in the study had verbal goals only
–3% of the businesses in the study had them written down
–98% of the wealth was held by those 3% of the businesses in the study

Now for Business Planning:

•Why should you go into business?
•Is there a market?
•Can I make money from it?

So we have now some thoughts and preparations for business planning. So lets move into business planning. Why do you want to do a business plan. TO PLAN that’s is why. Considering a business opportunity, Planning – Why my own Business? Should you go into business? Should you build one from scratch? Is there a market? How much money can I make? How much money will you need? Starting your own business will be one of the most important things you will ever do. There are a lot of risks – your money, your family & friends, existing jobs, and time. There are many things you should consider when getting into whether to start or run your own business. Lets look at them

Considering a Business:

•Have to be logical
•Is your plan viable
•Living document
•Helps you be organised

Writing a business plan seems so daunting, heaps of stress, but it makes you think logically and methodically about your business. By completing a business plan you be able to work out whether your plans are viable. Another important point is that you can then be prepared for the bank, or finance person aswell as sharing it with your team, business partners, etc.
A business plan needs to be a living document, something that you look at and work with regularly, not something that once is done, sits in the filing cabinet. You must update them and keep a record of where you are going and how you are getting there. It’s also great to look at where you have come from. Small Business success comes down to planning – and making sure you continue to grow and develop along and with your business plan. Follow some easy steps by being organised and planning, study our area of opportunity and know where you can go.

Why My Own Business:

•What can I do better or differently
•Three reasons why to go into business - Skills, Interests, Opportunity.

What can you make a difference in? What you can offer? Are willing to ride the time out then you should be ok. They say the first 2 years will either make or break a business. So in saying that, you get to think differently, You get to be your own boss – you decide the hours to work, more responsibility, No corporate ladder to climb, create something out of nothing, Choose something you love to do, Do it better than anyone else does, Add value to me aswell as the clients, Go the extra mile . And What would you need: My family support and encouragement and Willpower and determination.

Should you go into business?

•Long hours
• Hard work
• Must have:
• Patience
• Determination
• Passion
• Self discipline

Without a doubt this is where you will put in a lot of long hours, especially for the first few years.
It is a lot of hard work to start, run and successfully manage in business. I have found that the most successful business start ups are those where the person behind it, had alot of industry experience. Well let me tell you about building a business, its a hard thing to do. I was so excited to be working for myself. The first day I created my business plan and changed my focus. That day my business took off. I picked up 11 clients in the first 11 weeks, working for myself. Why Because I changed my focus. I sat down and did my plan and what I really wanted. Building my businesses has been hard, you need to get yourself out there. It takes time. Being that financial planning is commissioned based, and that we had a economic recession and downturn, it was always going to be hard. But I found that the best advertising is you yourself. And it takes time to build those relationships. You need to have Patience, Be Determined, Passionate and Disciplined.

Is there a market?

•What’s your competitive advantage?
•Why would someone give your business money?
•What special factors are going to make them buy from you?
•What can you offer that others don’t? What’ s your edge?
•Market Research?
•What are others doing?
•Product/Service idea questionnaire?

So lets look at You have an idea, and you know you can make a go of it, but is there a demand or market for your service or product? What’s your competitive advantage? There has to be something about you, your products or services that would make someone come to you and do business with you. Two questions to ask yourself are: Why would someone give your business money? What special factors are going to make them buy from you? How many factors can you come up with? You need to come up with important advantages to your clients, A better solution to the customer’s problem. Better quality of product or service. Better service and quicker delivery. Better knowledge and experience of the products and services. Better delivery channels – online web or over the phone. What can offer that others don’t, what is your edge

Market Research?

Sometimes it seems a good idea to hold the idea to yourself, but ask family and friends and maybe some other people about their thoughts on your idea. There are lots of ways to gather your research – on the web, GOOGLE, business groups – Chamber of commerce, Government.
Look at what other businesses have done or are doing and see what is working for them What are others doing? Look at other countries. See if there are similar products or services. Are there demands for the service or product? If not why? Talk to potential client’s aswell and get feedback from them as well. Maybe complete a survey.

Product/Service idea questionnaire? What do you like about my idea? What do you think could be improved? Would you buy this product or service? – Most important What price range would you be prepared to pay? Make sure you have done your research What can I do that is better than others Why is mine better

Evidence

–Will people buy these things?
– Is there a similar business near by?
–Is it a popular business overseas/interstate?
–What do the stats from the Australia Bureau of Statistics show
–Research shows a demand.

Make sure there is convincing evidence. Make a list of all the evidence and weigh it up.

For example –
Will people buy these things?
Is there a similar business near by?
Is it a popular business overseas/interstate?
What do the stats from the Australia Bureau of Statistics show
You have signed a new client up
Research shows a demand.
Is there other businesses near me that are similar
Stats.

How much money can you make?

•How much money is out their for your business
•How much do you need to break even
•Work out your cashflow
•Work out expenses.

Now you have investigated everything, and you idea or business is a viable business. The next step is how much money could you make or how much to break even (paying the business costs, including wages, superannuation, taxes). If you can’t make any money, then I would say don’t go ahead. When going ahead, you need to work out two things; firstly work out your cash flow,
and secondly, do some calculations. Work out the cost of your time, the production of the item,
how much you can on sell for, how many hours you are prepared to work to get it, then take away all your expenses Will you be able to take a wage home, and pay the bills.

How much money will i need?

•How much to start up?
•What are my running costs?
•What can be leased?
•What are my monthly expenses?

There some people may need to save prior to going in to business, others will wing it and others will just jump in and it will take off. So Should you save money before you go out on your own.
What about borrowing from the bank. Do you have a deposit? How much will you need? Can you afford to go with out wages.

Your next step is to work out how much money you will need to set/start and run the business.

Start up – how much will you need for the set up: the equipment, cost of the franchise, phones, desks, computers, printers, licences, legal fees, advertising, leases

Running Costs – how much will it cost per month to run your business: monthly bills – phone, internet, rent, advertising, wages, superannuation, taxes, etc

A thought would be if you could not afford to start up all at once, then space it over a couple of months, preparing everything first – planning, then purchase one thing at a time.

Maybe another business owner/friend may lend you their printer, or let you photocopy at their place of business for a small charge until you have your own copier, maybe they have a spare desk in their office or a spare massage table in the salon, and you can rent as a hot seat one day a week for your appointments. All until you get going.

Business Background

• Your Location
• Personal Characteristics
• Your Industry
• Key Products

So what is your business back ground? Are you trained, have management experience. What qualifications? What makes you think you are suitable to run a business?

Where is your Location: - Where will your business be located? Are you at home, a shop, office, sharing or owning, renting or bought.

Personal Characteristics: What traits do you have?

Your Industry: - Briefly describe your industry, Is it labour or knowledge intensive?

Key Products: Describe your key products and services. Exactly what are you going to do, provide? What service do you have, why are you better??

The Purpose of the Business

• Business Structure
• The History

The Purpose of the Business: Describe the purpose of your business, including why you want to start it. Explain the market you’ve identified and your competitive advantage

Business Structure: What is the structure of your business? (Sole Trader, Company, Partnership)

The History: Outline the history of your business or your idea . What is the purpose, what about the structure.

Business Support

• Your Team
• Your Suppliers

Your Team: Describe your staff . Your support network

Your Suppliers: Who are your suppliers? Who is your support?

Business Market

• Customers
• Customer Assumptions
• Promotion
• Market Research

Customers: Outline your customers – Major and Minor - Who will buy from you?

Customer Assumptions: Why would someone choose to do business with you? What evidence do you have?

Promotion: How do you intend to get the customers? Be specific on your advertising, promotion, word of mouth?

Market Research: Outline what research you have completed. The better understanding you have of your customers and their needs the better your business

Marketing – where when , who what research have you done

• Market Potential
• Market Potential Assumption
• Competitors
• Competitor Assumptions

Market Potential: What is the market potential for your service or products? What do you expect your first years turn over to be?

Market Potential Assumption: How have you arrived at the estimates – market research, trading history or trial marketing?

Competitors: Who are your competitors? Where are your competitors? Analyse the strength of you competition

Competitor Assumptions: Outline all assumptions you have made about your competitors
Marketing and competitors, who are they where are they.

Business environment

• Outside Influences:
• SWOT: What are your Strengths / Weaknesses / Opportunities / Threats?
• Distribution Channels:
• Use of Technology:
• Business Systems:

Outside Influences: Consider everything that could and would impact your business. Whether technology, trends, environmental, economic, regulations, etc.

SWOT: What are your Strengths? What are your Weaknesses? What are you Opportunities?
What are your Threats?

Distribution Channels: Do you market to other businesses, direct to consumers or do you commission sales people or distributors?

Use of Technology: Will you use: Email, Ecommerce, Website? What systems will you have in place?

Business Systems: Detail your business and management systems, including office and procedure manuals you have in place or will have in place. Are the simple and efficient?

for further information - www.planningwerx4u.com.au