The importance of preparing a Business Plan Elias Bastas • • • Partner at gpl Solutions Qualified accountant and business improvement specialist Educations qualifications – Bachelor of Business majoring in Accounting from The University of Technology – Master of Commerce majoring in Banking and Finance from The University of NSW • Professional memberships – – – – Fellow CPA with CPA Australia CA with The Institute of Chartered Accountants Member of The Australian Institute of Company Directors Registered Tax Agent Elias Bastas • • • • Extensive experience working with large multinational firms such as IBM Australia, Revlon Manufacturing and Alcatel. 30 years advising business leaders. Well qualified to assist clients with business consultancy, management accounting, taxation and business valuations. Clients include small start-ups, medium sized businesses and large companies. Why do you need a Business Plan? A business plan is the road map you need to follow in order to reach your goals and achieve your objectives. A research study by Paul Tiffany states that companies with just the strategic section of a business plan have 50% more profits and revenue than non-planning businesses. - Business Plans For Dummies Another survey found business planning companies have 63% higher revenue growth and 100% more profit. Why you need to plan • • • • • • • Control future risks Prepare for future uncertainty Control business environment Control business growth Avoid sales crises Avoid liquidity crises Ensure people development Consequences of not planning • • • • • • • Poor management systems No overall vision Lack of market planning Cash flow issues Low return on investment Not understanding your competition No established performance measures • Inadequate financial planning • Leads to probable business failure Can a business plan guarantee success? • No • However the absence of one would almost inevitably invite failure • A business plan can help to monitor how well you manage your investment to maintain healthy cash flow which is the life blood of your business If business plans are so important why do so few people actually write one? • It is human nature to put things off and procrastinate • You don’t know how to do it • It’s a challenge for business owners to put their assumptions on paper and risk that they may be wrong • Fear of failing to achieve goals • It is difficult A sound business plan gives your business a focus and direction. It removes uncertainty and helps you keep the business on track to achieve your goals. An added benefit to having a good business plan is that you can use it as a document that you can present to third parties - such as banks, real estate agents and other institutions, in support of any requests you make to them for any funds and/or leases you may need to launch or grow your business. The ‘Key Word’ Approach • • • • • Who When Where What Why • • • • How How much Unique Benefit to customer Business success is more likely to follow • • • • • When you have a clear idea why you are in business You have a clear understanding of how your vision fits into the broader scheme of things You know who your competitors are You have a deep understanding of your customers, their needs and how to influence them You understand how you can add value to your clients Components of a business plan • Mission – who are you and what services do you provide? • Vision – what do you want to achieve? • Organisation chart – clear roles and responsibilities of all employees • SWOT analysis – strengths, weaknesses, opportunities, threats • Market summary – who is your target market and what is currently happening in their business world? • Competitive advantage – what sets you apart? Components of a business plan • • • Strategic plan – what initiatives should you undertake to achieve your vision? Financial plan – what are your revenue estimates, budget and projected cashflow for the next 12 months? Marketing plan – what marketing activities do you need to undertake to promote your business? How to get started • Call me for professional help • We are always here to guide you • We aim to work together with you as partners gpl’s Business Plan Program • Session 1: Information gathering, diagnosis and Action Plans • Session 2: Review of Action Plan and Goal Setting • Session 3: Strategic Fine Tuning • Session 4: Assessment of Progress and Future Direction gpl’s Business Plan Program • The 4 sessions are spread over an agreed time frame • We anticipate that each session will be 3 hours face to face with a gpl Solutions Consultant and possibly 5 hours work from the business owner and his team • Flexible – Clients needs and stage of development differs so the process is flexible gpl’s Strategic Business Plan Cover Sheet Executive Summary Table Of Contents The Organizational Plan The Marketing Plan Financial Documents Supporting Documents Support Documents Other Legal Documents Personal Resumes Copies of leases, Mortgages, Purchase agreements etc Owners’ Financial Statements Contracts Credit Reports Letters of Reference gpl Solutions make it easy • We provide diagnostic tools to assist in the process • We link the plan to specific performance measures and targets • We use these to track the execution of your business plan • We help you monitor and adjust your plan so that it is always relevant and never out of date Things to consider • • • • • • • • Financial reporting Taxation Superannuation compliance Accounting & management services Audit & assurance Financial planning Mortgage & financing Information technology www.gplsolutions.com.au Office: Level 1, 86-90 Bay St Broadway, NSW 2007 Australia Phone: +61 2 9211 5977 Email: [email protected]