How to write a business plan

Author : Rob Ashton

Posted : 27 / 10 / 10

There’s a memorable conversation in Alice’s Adventures in Wonderland, where Alice asks the Cheshire cat for directions. Unfortunately, Alice doesn’t know where she wants to go, stating that it doesn’t matter where she gets to, as long as she gets somewhere. This leads the cat to respond that it doesn’t matter which way she turns.

If you don’t have a crystal-clear vision of where you want your business to go, you’ll be as confused as Alice when you hit a crossroads. Your business plan is your road-map. But in order to write it, you have to decide what you really want to achieve. This means you’ll have to spend time immersed in the strengths and weaknesses of your business, a process which, in itself, has numerous pay-offs. Studying and researching your company helps you to take a critical look at what you have to offer and who your competitors are. This enables you to better navigate the industry minefields and gives you a benchmark against which to measure success.

Many people think of business plans as a necessary evil, written only to gain external funding. Instead, look at them as an essential planning tool, whatever your financial situation. Remember, if you don’t plan where to go, you’re inadvertently planning on going nowhere.

Crafting your business plan

Here’s a seven-step guide to writing a winning business plan. Work through each section and you’ll have an ordered, content-rich document that gets you to where you want to go.

Step one: Description of the business

After the executive summary (see step seven), the first thing you’ll need is to describe your business.

Get started by asking the following questions:

What do I sell or offer? And why?
Who do I sell to?
What is the history of the business?
What is my vision for the future?
What is different about the services I offer?
What is the legal structure of the company?

Think about your audience carefully before you write the description. Ask yourself what words and phrases they will understand and be careful not to include too much jargon.

Step two: Market research

Think about your industry and what you think the future trends will be. Then analyse your competitors. Determine what size of the market they hold and then clearly define where you fit into the mix.

Step three: Marketing and sales strategy

Ask yourself why companies buy what you offer and how you plan to sell it. Think about how you are going to reach the organisations that need facilities management support and what pricing plans you’ll offer. Whether you’re an in-house department, specialist contractor or a large multi-service company, there’ll be a variety of ways to reach prospects.

Step four: Management and personnel team

Many facilities management companies claim that people are their best asset. Think carefully about your management team and outline the background, experience and qualifications of each individual. The people on your team will often make or break your success. Fully evaluate their credentials and look out for any weak skill sets that could be improved with training.

Step five: Operations

Analyse the location of your business in terms of advantages and disadvantages. Your own premises, production facilities and IT systems must be excellent. Make sure you address any weaknesses in your plan with recommendations for improvement.

Step six: Financial forecast

This section requires you to translate the contents of your plan into numbers. Include cash flow statements, profit and loss forecasts and a sales forecast. Don’t forget that if you’re looking for funding, you need to spell out how much you need and how you’ll repay the loan.

Step seven: The executive summary

Leave this until last, even though it goes right at the beginning. Once you’ve followed all the other steps, you’re in a position to write this stand-alone document, which outlines the key points in your entire plan. Keep it to a maximum of two pages. And remember, some people will only read this section, so make it shine. Tip: rather than trying to distil the full document, follow your original document plan. Just write less in each section this time (a couple of sentences or a paragraph, rather than several pages).

Finally, the ink may be dry, but your business – and the facilities management industry – is constantly changing. Your business plan is a dynamic document, so you need to update it regularly.