By Mildred J at September 08 2019 06:05:52
What are the critical steps needed to achieve a successful business plan? This may come as a surprise to my fellow business consultants, but producing a successful business plan is not as difficult as people often think, so long as they follow a logical sequence. Here is my considered view as to the critical steps. 1. Understand what you are planning and why; 2. Define the activities of your organisation; 3. Outline the current position of the business; 4. Review and discuss the external market conditions, undertake and understand a competitive analysis, and define your market positioning; 5. Define your core objectives; 6. Prepare and articulate the strategy to attain and meet the objectives; 7. Identify and review risks and opportunities; 8. Prepare a strategy to deal with risks and exploit opportunities; 9. Refine the strategies into operational plans; 10. Prepare financial forecasts including revenues, costs, cash_flow, capital expenditure and assumptions adopted; 11. Finalise the plan; 12. Get it approved; 13. Use it; 14. Review it regularly and update as appropriate.
There are many reasons for utilizing such a document. Is the final document going to be about implementing a decision already having been reached or is it about analysis and recommendations for a newly proposed activity. As noted above, a finished document may be for internal or external purposes. Externally they are often used to solicit funding for a start_up or joint venture. Whatever the purpose, do not confuse effort with say, a marketing or a production plan.