What should go into a Business Plan?

What should go into a Business Plan?

Having done an MBA I know that the answer is "…it depends.." indeed when you've done an MBA you realise that this is the answer to every possible business question. I loved doing the course, and got a lot from it but having an MBA doesn't make you Alan Sugar or Richard Brandson. Indeed I think I know every possible way a business might fail, but I don't have a recipe for guaranteed success.

The same might be applied to a Business Plan, I know what a bad one is, but its hard to prescribe an ideal one that would suit everyone. The key is to address the external environment (PESTLE) and internal resources (SWOT) and some up with a Strategy (Long Plan) Aims (Medium Plan) and Objectives (Immediate Plan) to use your resources to best advantage delivering a Product or Service to a Customer.

There are lots of lists and models you can use to inform your business planning. My favourite models are EFQM Business Excellence Model and Balanced Scorecard. They can be really helpful to thinking through the issues and picking the elements that are most appropriate to the circumstance.

Key rules
1. The business plan should tell a compelling story about your business, explaining who, what, when, where, how and why.
2. Your plan should be focused and clear. It’s not about the number of pages or style of the cover.
3. The plan should define specific business objectives and goals with general parameters to guide the organization.
4. Writing a business plan should force logic and discipline into a business.
5. A good business plan is a living document. It should be updated regularly.

A simple list of contents might be as follows, but the content will be different of the intended readership is the Bank (for a loan) or the staff (to direct activity)

Executive Summary
Business Description & Vision
Definition of the Market
Description of Products and Services
Organization & Management
Marketing and Sales Strategy.
Financial Management.

Another great resource is bench-marking: Look at the published business plans or strategy announcements of companies you admire or compete against. Look also at the plans or announcements of your customers and check that your strategy fits their needs!

Best books include Exploring Corporate Strategy (Johnson and Scholes) and Operations Strategy (Nigel Slack)