BY FRED VICTOR.
Business plan is indeed a
must-have business document for any kind of business, at any stage – whether a
startup or an ailing one. Why? In my opinion, having a business plan is a simple
act, an act that writes down your business idea, outlining the business
functions and the entire activities so that everyone within your company is
well-communicated, going towards the same direction. Most importantly, a
rock-solid business plan provides valuable benchmark for on-going progress
monitoring as your company moves forward. Isn’t it such a well-constructed hypothesis
of mine is applicable to both startup companies and ailing businesses?
A classic example of mine, in
2003, I once wrote a basic business plan myself (that was my very first
business plan way before my MBA degree) on a money-losing retail chain store in
Pahang state. It was actually a corporate turnaround business plan, I wrote
down my idea based on the opportunities observed after three rounds of on-site visits.
Something was so fortunate that it didn’t stop me from implementing the plan although
I didn’t have a proper business plan writing paper.
No doubt, the vision, the strategies and the financial projections were sound. Eventually, I successfully reformed and revived the dying retail chain business within a year, and the revenue humbly went from thousands to tens of thousands per month per outlet. That said, a rock-solid business plan doesn’t need to be a manicured document to make it a success.
No doubt, the vision, the strategies and the financial projections were sound. Eventually, I successfully reformed and revived the dying retail chain business within a year, and the revenue humbly went from thousands to tens of thousands per month per outlet. That said, a rock-solid business plan doesn’t need to be a manicured document to make it a success.
Another good example, in 2014, I
wrote a comprehensive master franchise plan on a Korean F&B business (with
my MBA degree), for a retail group in Kuala Lumpur. It was a startup, and its master
franchise plan required wide-ranging supporting documents, including master
franchisee plan, unit franchisee plan, operation manual, central kitchen plan, franchise
proposals and so on. Again, the vision, the strategies, the action plans as well
as the financial projections (with more than 15 graphical exhibits) were sound.
In the end, I successfully created a popular Korean F&B brand in town with
consistent monthly revenue that exceeded projections, and most importantly, the
business achieved its return on investment (ROI) in less than six months.
In general, your business plan
should be straight-forward, providing a clear roadmap for your company to go
forward. Without a plan, you’ll find it difficult to communicate your direction,
and your vision.
Here are four elements of a
rock-solid business plan that I’ve found valuable during my profession:
Element One: Calculations
There is one saying: “Many calculations mean victory, few
calculations mean no victory.” A rock-solid business plan needs realistic and
comprehensive financial estimations, including Capital Expenditure (CAPEX), Profit
& Loss, Master Budgets, Human Resource, Payback, Key Performance Indicator
(KPI) and so on. Being realistic is imperative as it gives credibility to support
your business plan.
Element Two: Formation
There was one saying in ancient
times: “Those skilled in warfare
cultivate the Way, and preserve the Law, therefore, they govern victory and
defeat.” A rock-solid business plan requires solid implementation by a
strong management team with well-matched credentials and expertise. If you don’t
have all the skills you need, you can consider adding consultants skilled in
your field.
Element Three: Know Earth, Know Heaven
There was one saying in ancient
times: “Know thy self, know thy enemy. A thousand battles, a thousand
victories.” Understand your competitors is an important part of running a
successful business, so defining your unique selling proposition (USP) through valuable
competitor intelligence research such as SWOT (Strength, Weaknesses,
Opportunities, Threats) analysis will be another milestone to achieve.
Element Four:
Planning Attacks
Time is the essence of war, there was one saying
in the oldest military treatise in the world: “He who knows when he can fight and when he cannot, will be victorious.”
A rock-solid business plan requires strategic and effective actionable plans to
achieve its progressive benchmarks. To compete, action plan helps to identify
your business goal and strategies that can be implemented to achieve your goals.
***
About GE Consult
Founded
since 2003, GE Consult has helped numerous local SMEs/SMIs in
developing their company profiles, business plans, business proposals
etc. assisted clients in securing business deals and contracts. If you
are looking for a winning company profile or any professional services,
please do not hesitate to contact us at (+6017) 330 8077 and/or email rachel@geconsult.org for further service explanation.
