Business Plan Action Checklist
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This document provides a checklist for creating a business plan in 12 steps. It outlines key areas that should be covered, including operations, marketing, finance, and human resources. The business plan defines objectives, describes market opportunities and plans for development, production, marketing, and finances. It also covers risks, critical success factors, and includes an executive summary. The goal is to create a concise 25-30 page plan that promotes confidence and sets the strategic direction for the business.
Business Plan Action Checklist
- 1. 1 MANAGEMENT AND LEADERSHIP: LEADING A TEAM Step 2.6 Business Plan Action Checklist Introduction A business plan is exactly what the phrase suggests: a plan for the business. It sets the strategy and direction, set targets for managers and promotes the confidence and support of employees, shareholders and customers. Business planning is not just for large organisations. Small ones can benefit from producing a more specific business plan to assist them operationally. A business plan is not just for the people inside the business who will implement it; it is for people outside the business, including shareholders and potential investors, and this is particularly important for a new, start-up venture. There is no single format for producing a business plan. The following checklist, aimed primarily at a start-up or a smaller business looking for funding, outlines the key areas that should be covered in the plan and the steps taken to produce it. Definition A business plan is a written document which describes the organisation, sets out its aims and objectives and makes a statement of intent for its future development. Preparation requires: assessing the present internal and external position, and future prospects analysing the market
- 2. 2 producing projections for 3–5 years (depending on the sector) setting short-term and long-term objectives establishing a framework and processes for achieving objectives detailed research, careful thought and application being clear, to avoid misunderstandings or confusion an honest and realistic appraisal that includes organisational shortcomings, problems and obstacles, as well as positive factors. It needs to cover the following elements: Operations – including the supply of raw materials, technological requirements, key processes, resourcing needs, production and delivery targets, business processes, intellectual property, location and risk management issues. Marketing – how market intelligence will be gathered to ensure that the organisation’s strategies will meet market needs and marketing objectives. Finance – an assessment of fixed and variable costs and minimum financial requirements. This should also include a detailed cash-flow and profit forecast. Human resources – including recruitment, retention, skills development, compensation, leadership of the business and stakeholder relationship management. Business Plan Action checklist 1. Before you start Gather the relevant information Carry out a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) Carry out a market analysis, covering: the overall market, and the specific market segment(s) targeted detailed information on current and potential customers names of leading competitors, market share, alternative products or services
- 3. 3 routes to market market influences – economic and cultural trends, seasonal fluctuations, legislation, social factors, pricing movements and history information about suppliers of goods you wish to market – quality, resources, availability and competitive advantage. 2. Provide background information Describe: the vision/mission/purpose of the organisation and its core values the ownership of the organisation, its legal structure, how much investment has already been made and by whom what differentiates the organisation from its competitors the history of the organisation and its products or services who the customers are, and the market served past and current performance key factors that might affect the success or failure of the products or service the skills and experience of key individuals or the management team. 3. Define the objectives Include a list of specific targets and identify objectives which can be measured. Consider a contingency plan which would describe what to do if the objectives are not achieved. 4. Describe market opportunities Demonstrate awareness of what the target market is and any changes affecting it. Outline the results of your market analysis and explain the opportunities and routes to market which have been identified. 5. Describe your plans for development and production (the operations plan) Describe the research, development and production processes, and the expected costs of raw materials, labour, premises and equipment, if relevant. Be clear about the steps to take to maintain quality.
- 4. 4 6. Propose your marketing approach (the marketing plan) Describe the marketing strategy which will be used to take your services or products to market. 7. Clarify the current financial situation (the financial plan) Clarify the figures for past, present and projected performance, including any start-up costs, profit-loss statements, cash flow analyses and balance sheet data. Repayment, or return-on- investment, will be of key interest to investors, so include accurate break-even projections. Analyse profitability, solvency and debt status. Demonstrate how sound financial control will be exercised. 8. Explain human resources issues (the HR plan) Describe the strengths, skills and experience of all those involved, including the leadership team. If there are weaknesses, explain how these will be managed. Outline the compensation structure, along with recruitment and retention, and possibly the training and development strategies. Include details of how individual and group performance measurement is linked to strategy. 9. Cover risks, problems and critical success factors Do not omit negative factors, either actual or potential. Demonstrate awareness of changes that are likely to affect the organisation. Provide a brief account of critical success factors. 10. Conclude with the key message Consider the final impression you want to leave with the reader and ensure that this comes across in the conclusion and key points’ summary. Include a proposed timetable of events to demonstrate sound planning. Finally, check through for correct grammar and spelling, and clarity of language. 11. Consider what you should include in appendices The plan should be as concise as possible, usually not more than 25–30 pages. Place additional detail in appendices at the end of the plan.
- 5. 5 12. Provide an executive summary The executive summary appears at the front of the document and will be read before anything else. It may be the only part that is read. For this reason, the summary should be written last. Avoid: skimping on research or including irrelevant material focusing only on one aspect of the plan at the expense of others making over-optimistic forecasts or unsubstantiated claims discussing problems and weaknesses. And don’t forget to check the figures.