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Is your business plan accumulating grime or creating profit? |
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Written by Webmaster
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Monday, 01 August 2011 |
By Rosana Mirella
 This prevents many businesses from obtaining the consequential short and long term advantages. Instantaneous priorities tend to dominate and business owners tend to become more embroiled in fire fighting than strategic planning. They tend to be diverted by short term problems.
Making a mini time window accessible to work on your business rather than in it, is an contribution that pays consequential dividends. There are four immediate results that many businesses can expect from committing to the discipline of planning. These benefits can be attained by every business that puts in place a structuprecise to creating a strategic business plan annually.
Benefit 1 - Swelling the value of your business
Whilst justifying the value of your business is one core element of a business plan, the ability to set value objectives and measure your progress towards these over time enhances the value of your business.
Value is frequently something that is considered too belatedly in the business development lifecycle. Considering long-term value at the time of sale doesn't leave you much time to build or increase your business value.
Value objectives and value growth should be set as part of any business planning method. This enables you to track your progress, not just in terms of revenue, or cash flow, but in terms of comprehensive business value.
The future value of your business is determined by what you do between today and the time when you exit the business. Having a plan for how this value creation will occur, what actions you will take and how you will align your business with the objectives of potential acquirers is critical. The earlier you get started, the greater your opportunity.
Benefit 2 - Attracting funding and partners
Many businesses need to attract funding and partners in order to grow. Very few will be able to assess your business proposition without a proper plan. The plan should lay-out a well reasoned pathway to success and actually define what success means in terms of financial and strategic value.
A well prepared and reasoned business plan is a basic pre-requisite for attracting funding and partners. It shows that you have the discipline required to prepare a plan, and outlines how you intend to achieve your business objectives. Using milestones or investment "tranches" can be useful in breaking down your plan into manageable and measurable actions.
Without a plan it is difficult for potential investors or partners to provide meaningful feedback. The document enables a critical review of key aspects of your strategy, business model and approach. Whilst your plan may not adapt all potential audiences it does deliver the basis for others to test your logic and suggest revisions where needed. It explains your strategy, proposed action and most importantly for investors, when and how value will be created.
The plan itself is often as significant a driver of value as your business itself. It outlines how you intend to create value, rather than merely explaining what you do.
There are heaps more benefits you can realise from setting aside some time for annual business planning, Next time you are inattentive, just think of the benefits.
Marcus Tarrant is the author of Business Planning HQ. Business Planning HQ is the worlds leading tool for businesses looking for a business plan. The tool can be used for any business type, however is devised for high end use. It has been developed to address the needs of sophisticated investors and will even provide all the documents you need for a $300k - 1.5 million capital raising. So if you need a capital raising business plan , look no further than the Business Planning HQ toolkit, Powered by HyperQuestions. Get response now, >>CLICK HERE<<
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Last Updated ( Monday, 01 August 2011 )
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