Eight steps to the next level - The Business Plan: "The engine of the Small Business Development

This is the second in a series of articles that describe how small businesses and managers for their growth and development cost through the creation and implementation of a business plan to drive.

I know that the prevailing view among many small business owners is "planning" for the company's largest, most serious, "they are too busy to have a business to plan their time." In fact, many small businesses "too busy" managing the business, butignore them at your own risk and survival, "failing to plan plans to fail."

I am convinced that the small entrepreneur to deter rivals in the business planning process because of the nature of thought and careful consideration of the nature of their business and operating profit - and how his determination, "who will bring in business."

This planning process results in a stronger, more profitable business, which providesreal added value for its customers and the market.

The planning process described in this article, is more logical, pragmatic and practical as possible of the small company. This process is far from being arcane or mysterious, and totally focused on the reality of the environments of small businesses (businesses, industry, competition, customer requirements, needs and desires) and the determination and allocation of corporate resources ).

Business Planning Process -Eight major steps

Over the past 30 years I have successfully used the business and strategic marketing planning. The following process is composed of eight main stages are sequential and continuous. I will describe the nature and function of each step.

This process applies to all types of organizations, regardless of their size, products, services or industry .... I also used this process with a national religious organization.

1.Mission is to develop positioning statement
2. MANAGEMENT CONTROL
a. Internal
b. Exterior
3. ANALYSIS WOTSUP
4. Hypothesis
5. Develop objectives
6. DEVELOPMENT STRATEGY
7. SPECIFY tactics and actions
8. PREPARE FOR WEATHER / Budgets / Financials

1. Mission and positioning statement

Regarding the definition of the purpose your business' and the mission, there is only one focus, a starting point, the client or user ofProducts / services. The user defines the mission of a function or work. The question "What is our mission and purpose" "What we want to be?" It can therefore only look, your company will be answered from the outside, from the perspective of the client or potential client. What the user or customer, think, or believe must at some point in your business management as an objective fact to be taken seriously accepted.

By definition, the customerDepartment of satisfaction of a need or want.

For example, here is a real and familiar example of a business mission that defines the way in which this company has conducted its business.

A manufacturer of drill defines its mission to determine "what the customers need larger holes, their goal was directly on the customer and not product specifications. They were customer-oriented and successful.

After the mission was completed, the developmentThe positioning and the loss of competitive advantage and the preparation of USP - your unique selling point. "Because the company is able, more efficient solutions and will provide more value than the competition."

2. THE SITUATION internal and external audit

The audit situation is a description and analysis of past data, present and future (information) that provides the basis for the continuation of the planning process is available. This is an organized process for:

Collect relevantInformation
Interpretation of its impact on the business environment (market conditions)
Analysis of the trends
influence the extent of all relevant factors, the business activities.

3. ANALYSIS WOTSUP

The acronym stands for WOTSUP weaknesses, opportunities, risks and strengths behind schedule. This step flows naturally from the basic fact (such as audit). The strengths and weaknesses are internal analysis, namely, "What we're up and downin "? -

Opportunities and risks, on the other hand, are the external analysis. This analysis can be formulated objectives and specific action plans developed to overcome the weaknesses and risks through the use of the strengths and business opportunities.

4. Hypothesis:

any planning assumptions. Without the use of assumptions that the schedule would be almost impossible. Given that planning is concerned with the future of decisions and events in the futurealmost impossible to predict with unerring accuracy - planning assumptions make possible.

5. Develop objectives

The primary objectives are the real core of the Business and Marketing Planning Process. They deserve every last ounce of time and effort - often frustrating. The objectives provide the framework for the budget planning framework as a whole is built. Given the fundamental role that should be studied and expressed as specific and concreteFashion. In the simplest terms is a goal ... "What we want to achieve?" The objectives are ready to develop the weaknesses and threats analysis WOTSUP overcome and exploit opportunities and strengths.

6. Development Strategy:

Once the objectives have been developed, the development of strategies, the next step in this process. Strategies must explain in the broad sense, how the objectives will be achieved.

7. SPECIFY action programs

AfterObjectives and strategies were developed to describe the job. The actions must be very specific, which is a work to be done, by whom, how and when.

8. WEATHER / budget / Finance READY:

Action programs, if completed, the basis for the preparation of the budget. The cost of each activity and revenue from special measures to generate cash operating budget and cash for the business plan.

Many organizations to be confused with the budget planning. Aimportant to achieve the objective of the budget, the company has sufficient funds to operate. Budgeting is not about bankruptcy, the planning of what is possible.