Venturing into running your own business is not only very exciting, but it is also a very stressful time. There are many steps in the process that must be completed. One of these steps is acquiring the financing from a bank. In order to secure funding from a bank, you must have a sound business plan. You will be required to submit a thorough and professional business plan with the appropriate details that will show a bank that your business is a wise investment.
The following are a number of tips to fine tuning your business plan:
1. Your business plan should have a cover page and introductory letter. The cover page should identify that you are submitting the business plan and include your company name, logo, and contact information. The introductory letter will briefly state why you are submitting a business plan.
2. A table of contents is essential to a business plan. This will allow the reviewer to get a clear understanding about what they will read. It will also permit the reader to skip to different parts of the business plan.
3. The Executive Summary is a crucial part of the business plan. It explains why you will be successful. It will provide a summary of the most important parts of the business plan. It should engage the reader and make him or her want to read the entire plan.
4. You must provide the bank with the necessary financial details. This includes a detailed marketing and financial plan. The bank needs to know about your competition, your market, and the potential for growth in the market. You will have to show how you will bring in sources of revenue and operate your business in a fiscally responsible manner. You should also detail your expenses that include your start up costs and costs of maintaining the business.
5. It is important to detail your strengths in your business plan. You must show what gives you a competitive edge over other companies. You need to show that you understand your customer’s needs and wants, and how you will fulfill them. The bank will want to know how you will reach your targeted customers and convey your message and product to them successfully. You must also explain your competitor’s weaknesses and how you will take advantage of these weaknesses to compete for business.
6. The bank will want to know the viability of your product or service. Make sure you have tested your product or service with a sample of your targeted customers. This can include a focus group, survey…etc. A report should be provided outlining how you will grow and make adjustments to meet your customer’s needs. You also need to show how the product or service will be made and what suppliers you will be using. You have to explain your basic requirements and how you will meet them.
7. Include a section about your management and staff. You should detail their skills, education, and experience. It should illustrate how they will make your business a success.
Regardless of your type of business, within your business plan you must provide the necessary details that will take the reviewer through the process of setting up and implementing a competitive and long term business. The business plan is a key tool to securing funding for your business venture.
By: A.Noton
Archive for September, 2009
Ways to Fine-Tune Your Business Plan
September 30th, 2009Golf Business Plan for 2009. Got Plans?
September 29th, 2009As we enter the final two months of 2008, your Club should be well on its way if not finished with its Business Plan for 2009. Yet, I find that in many cases Clubs have not yet even started the process. When I ask why the plan hasn’t begun, I hear a litany of amusing responses, well actually unfounded excuses. A sampling of the feedback includes:
We can’t start a new budget when we don’t have final numbers for 2008. We haven’t decided what we are going to do with our operation in the off season. We’re too busy. We’re afraid of what it might look like. We tried that before and it did not help us. It takes too much time and we don’t ever use it for anything.
Any of this strike a chord? Be honest now!
The reality is that many Clubs either don’t have the skills, commitment, discipline, or desire to put together a plan. Planning is work! Hard work! But like any other hard work well done, it provides great benefits.
A forward thinking approach with a financial plan in place for the entire year and then updated on a quarterly basis with a forecast with a focus on creating the future is a paradigm that any successful business utilizes. Yet, I find that in most cases Clubs do little more than take a perfunctory look at the numbers from the prior month usually about 15 to 20 days if not more after the month has ended.
I have seen amazing transformations in the actions Clubs take when the financial realities of their business are made known to them in black and white terms with a well thought out financial plan and a forecast of the future business. I have implemented forecasting where it previously was not utilized and immediately new plans were developed for better expense controls and the marketing ideas became number one priorities instead of just “when I get to it” afterthoughts.
A focus on creating the future through a thorough, well crafted business plan is what separates great operators from marginal and poor performers. It the difference between swimming toward a destination and just drifting with the current. It reminds me of a passage from Alice in Wonderland. When Alice encounters a Cat during her travels, she asks the cat for advice on the road she should take. The Cat responds by asking Alice where she wants to go. Alice responds that she really does not know. The Cat responds by telling Alice that if she doesn’t know where she wants to go, then the road she takes really doesn’t matter. Do you know where you want to go in 2009?
You must have goals. But putting together a financial is more than just crunching numbers. There is much groundwork that must be completed in order to get the proper foundation to plan. A solid financial plan is the final results of a thorough Business Planning process which includes:
Components of a thorough Business Plan include:
1. SFSWOT Analysis
This is analysis of each Club department’s and the Club’s overall
Successes Failures Strengths Weaknesses Threats Opportunities
It provides a critical self assessment of your Club and provides a great foundation for goal setting for both qualitative and quantitative improvements in the upcoming year.
2. Competitive Analysis
Who is your competition? What do they charge? What is your unique selling advantage?
3. Membership Planning
What are your Club trends for both membership enrollment and attrition by category? What real growth do you want to plan for in 2009? What has been the trend with upgrades and downgrades? What are you doing with Initiation Fees? Do you have financing in place? How will you handle your wait list to join? To resign?
4. Pricing Plan
What price increase will you take this year and when? Will dues increase? If so, will that cause attrition? How will you price your cart and guest fees? What about F&B. Remember, except for a very few elite Clubs in the Country, cost does matter.
5. Payroll Planning
What payroll increases are you authorizing for the Club’s employees in 2009? Are the increases performance based or just “no thought” across the board increases? Can your Club afford to give increases? Do you have incentive based compensation plans in place or do you just pay for showing up regardless of the performance?
6. Expense Planning
What expense increases are you anticipating? Have you reviewed each department on a line item basis to determine if the expenses may have significant fluctuations either up or down? Items that can change significantly include general liability insurance, property taxes, utilities, fertilizer, chemicals, and fuel. Have you reviewed these thoroughly to ensure you have an accurate view of the expense side of the financial plan?
7. Marketing Plan
Do have a written quarterly game plan for driving the revenue sources that are important to your Club? Are specific timelines and people assigned to carry out the plans? Have you budgeted the needed dollars for marketing to ensure you will be able to achieve the results you need? Check out our industry best website solution for Private Clubs at www.privateclubcommander.com
8. Retention Planning
Do you have a comprehensive calendar of events that appeal to all segments of your membership to keep them using the Club and providing needed revenues. Is your calendar planned ahead at least 3 months at all times? Or are you trying to come up with things at the last minute because the newsletter copy is due?
9. Qualitative Improvement Planning
Do you have a written quarterly plan in ever department for qualitative improvement? Specifically, are you challenging all of your Club departments to implement 2 or 3 initiatives that either create a better member experience, provide for improved employee efficiency, introduce a new product or service, or produce a better financial result?
10. Capital Planning
Do you have a written capital replacement plan in place for 2009? Replacing depreciated assets on an annual basis is another component of a successful business. Do you have the necessary cash to replace what is needed in 2009? Are you going to finance or lease needed equipment? Have you done the analysis? Is your plan at least looking ahead 5 years?
By: Bob Devitz
For Financial Advisors: A Little Used Marketing Tool With Outsized Advantages
September 28th, 2009Michael Port in “Book Yourself Solid” recommends an “Always-Have-Something-To Invite-People-To offer.”
In my opinion this strategy is so effective for financial advisors because it melts negatives likes these:
– Prospects may know next to nothing about you and need to ease into a relationship.
– They may worry about being slammed by a crushing sales pitch.
– They may have had a bad experience with someone providing a similar service.
And the list goes on . . .
But suppose you offered something that introduces you and your services with no risk for your prospects! Simply, you showcased your personality and your expertise in one stroke while sitting comfortably at your desk.
One of our favorites is the complimentary teleseminar.
> Why Teleseminars?
We focus on teleseminars for three reasons:
1) Because they are easy to carry out,
2) Because they are super-convenient for your prospects, and
3) Because teleseminars can be free (look at www.freeconferencecall.com)
Now let’s see about designing this marketing tool for maximum results for financial advisors.
> The Hanson Big 5 Tips For Getting The Most From Your Teleseminars
* Big Tip 1 – Rigorously Hold To Your Schedule
Whether it is a weekly, bi-weekly, or monthly basis — keep it in front of you as a marketing tool you’re committed to.
* Big Tip 2 – Give Your Telseminar Series A Title That Sets You Apart
The name should capture what you do. Ours, for example, could be the Stand Out From The Pack Series. A financial advisor’s could be The Wealth Management Center or The Secure Retirement Hub.
* Big Tip 3 – Talk About Topics That Are Gnawing At Your Prospects
An appropriate general title for your teleseminars keeps the door wide open for a multitude of subjects. That means each week you can present a new on-topic teleseminar and, of course, open it up to questions and answers.
A question, by the way, can develop into a full-blown subject for the next teleseminar and you can invite everyone on the spot.
Also, you don’t have to be the only star of the show. You can invite complementary specialists and interview them. The KEY is to provide value – to help listeners solve their toughest problems
And yes, over time, you’ll have a library of topics, and you can repeat.
* Big Tip 4 – Invite The Right People – Whether Few Or Many
Your invitation list doesn’t need to be long – just a handful of prospects is fine. Or even an audience of one.
Sales consultant Chris Mullins ingeniously uses teleseminars as the keystone of her sales process. She may be talking to a prospect on Wednesday. Once she learns what his or her big issue is, she can say, “I’m giving a teleseminar on that topic on Friday. Please join me.” Then, that troubling issue becomes the main subject for her teleseminar that week.
You may be collecting names from your website in addition to prospects from referrals and networking activities. You can invite them all to your teleseminars, too.
Consider inviting your clients. Certain topics may be just right for your clients and serve to deepen your relationship.
As a financial advisor, you may not, though, have Chris Mullins’ flexibility. Your teleseminar script may require approval by compliance, and that means you do have to plan ahead.
* Big Tip 5 – Have A Follow Up Strategy
Many financial advisors stop too soon. The teleseminar provides an opening to move your prospects along. You can send an email reminding them of the opportunity to get the transcript or to listen to the recording.
Or you can follow up with a short phone call or leave a message for them.
The good feelings from a teleseminar well done (always providing value) carry over when you contact your prospects again. In addition, providing teleseminars on a schedule always keeps you in front of your prospects. A big advantage in an overcrowded, overmarketed field!
By: Shirley Hanson
