Writing an Effective Business Plan (Part 3)

I would like to apologize to readers of this blog. This article should have been completed beginning of this week. This was not so due to unforeseen events that took place during the week. Today I will finish off this topic and move to new exciting business opportunities that I have been working on.

One of the most important areas you need to pay much attention is your projected sales section. Sales forecasting may sound like rocket science, please don’t worry it’s not complicated. In fact it is very easy. Just think of your sales forecast as an educated guess- forecasting takes a good calculated guess of your anticipated business performance. You need to clearly define:

• Expected growth rates in units and dollars
• Give concrete reasons for the projections (stating why less or why more)
• State the driving force that will help you attain the stated figures
• How the sales forecast relate to your market analysis, target segments, your sales and marketing strategy
• State what events might impede or negatively affect your forecasts

Sales Strategy – Please note that you must make a clear distinction between your marketing and sales strategy. Remember your sales strategy is responsible for closing deals identified by your marketing strategy. Your sales strategy mainly deals with and when to:

• Close sales prospects
• Compensate sales personnel
• Optimize order processing

Marketing Plan – under this section profile your strategy for generating sales for your business. State your Unique Selling Proposition (USP). How differentiated your product/service is, compared to competition. How you intend to create and sustain value for your business over time? Remember, your marketing plan is the lifeline of your business.

Your Management Team – The backbone of every organization is the resources at its disposal. This can be in the form of human capital, technical know how and in monetary value. Under this section profile summary CVs for the key management, clearly stating the skills they are bringing to the company. State their roles in the business and their level of expertise within their key functions. Using a table clearly state the number of employees that will be in the business by designation. Also justify why you are starting your business venture with that number of employees.

Apart from listing your team’s key competencies, also be objective and list skill gaps you think need to be filled when the business takes off the ground. Service gaps can be skills lacking with your team such as accounting skills or IT skills. It can be anything related to skills shortage. The most important thing is to be objective and remember skills gaps are not a negative even if you are seeking funding from banks.

I hope I have managed to impart some knowledge through this three part series in writing an effective business plan. What is left now is for you to take that dreaded action to START.

I hope you will have the courage to move a step in the direction of your dreams. Remember ‘The world has the habit of making room for the man whose words and actions show that he knows where he is going’. For more information and inspiring articles visit: www.entrepreneur-101.blogspot.com or alternatively write to me at farai@bluemoonzim.com.

To your success!!!!