MODERN FRANCHISING
future date?
• How will you get there?
THE FIRST QUESTION:
‘Where are you now?’ – must be
your starting point. This question
seeks to provide a planning base. It
looks at your business to establish
such things as:
• Your business idea
• Your current level of sales
• Your customer groups
• Your products and services
• Your pricing policy
• Your promotional activity
• Your overall operation
• Your employees
• Your finances
Answering the question ‘Where
are you now?’ is often a major
stumbling block because most
people don’t know where to start.
However, the answer is surprisingly
simple if you divide your business
planning into four key areas:
Operational, Marketing, Employees
and Finance. Such a division allows
you to analyse your business to
create a solid planning base.
THE SECOND QUESTION:
‘Where do you want to be at a
future date?’ is simply asking
you to visualize your business
operation at a set date in the
future. This visualization process
is almost identical to the exercise
of setting up personal objectives.
The difference, however is that
the focus here is on business
objectives.
THE THIRD QUESTION:
“How will you get there?” asks
about the steps you need to take
in order to achieve the business
objectives you have set. These
steps, or strategies, can be identified,
written down and planned for.
making a mistake or not considering
important factors in your business
and most importantly,
Additional things a business plan
should consider:
1. What is the need for what you
are offering and what profit margins
can you expect?
5. Dramatically increases your
chances of success.
2. What is a reasonable expectation
of profitability and when?
3. How will the business pay you
and any team members?
4. What are estimated expenses?
5. What considerations to marketing
your products /services are to be
made?
While much of this may have
occurred to you informally, it is
very important to write it down.
If you ever need to approach a
bank or investors, you will need it.
Writing it down will reinforce your
vision, give you a reference point
for checking your business and will
most likely bring up factors you did
not consider when creating the plan
in your head.
Business plans are not only for
those just setting out their journey
in the marketplace. They are useful
when acquiring a new business,
forecasting growth, introducing a
new product or service, entering
a new market, responding to
changes in the market or changing a
significant aspect of your business.
Whilst many would acknowledge the
importance of doing one, not many
actually do it, and instead fumble
along doing what they do, i.e. they
“Fail To Implement”.
This is often the crucial difference
between those who achieve their
goals and those that don’t.
Writing your business plan down:
1. Helps you determine and
coordinate all aspects of business
operations
2. Gives you a means to analyse and
determine what might be the best
change to boost your business out
of a stagnant situation.
3. Assists you in determining the
risks and benefits associated with
any changes.
Mark Fernandez is a Director of
Business Development Alliance, a
leader in franchise and business
development throughout Australia &
New Zealand. Mark has been influential
across a number of key industry
sectors, including, Retail, Shipping and
Hospitality. For more information on
franchising, business development and
BDA’s services visit their website at:
www.bda-online.com.au
4. Decreases your chances to
September 2016
ModernBusiness
47