Simple Business Plan

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*  One Page Strategic Plan: Summary of business vision, mission, goals and this years actions (combined simplified version of a strategic plan and operational plan)

* Simple Marketing Plan: Summary of your target market, their wants/needs, and how your business will satisfy them (simplified version of a marketing plan)

* A Business Miniplan of business concept, marketing plan, financing needs and financial statements (cash flow, income projection and balance sheet).

One Page Strategic Plan

A one page strategic plan that summarises vision, mission, objectives, strategies, and tasks to achieve them helps you stay focussed on the overall direction of your business.

Jim Horan has a book to help develop one page strategic plans, simply called “The One Page Business Plan” (opens in new browser) that has received excellent reviews from a number of prominent entrepreneurs and business people.
simple marketing plan

Simple marketing plans are suitable for businesses that have only one target audience that is easy to identify and simple to reach. Alternatively, if a business has just a couple of products/services, or just a couple of major target markets, a one page summary of each combination may be beneficial to leave in a prominent place to help keep focussed in day to day operations.

There are any number of books on marketing planning. I have found the following three guides invaluable tools for small business purposes:

* Linda Hailey’s “KickStart Marketing: The no-nonsense system for boosting your small business” is a great step-by-step guide for developing a simple marketing plan for small business,
* Brad Sugars’ “Instant Cashflow” has 282 practical tips for small business marketing and promotion, and he has a variety of more specialised books about different parts of the sales and promotional process,
* Rudy Labordus has a wonderful tool called AdPack to help small business people develop a custom fit promotional program - extremely visual and practical.

The Business Miniplan

A simple business plan for internal use still needs to discuss the business concept, marketing plan and financial statements (at least cash flow, income projection and breakeven analysis; profit and loss, and balance sheets are a good idea too).

Answer the following questions - you may simply list the information in bulleted points.

(Using a hair salon as an example … )

Business Concept

* Describe what your business is:
o type of busines (hair salon)
o products/service (eg hair products/cutting hair)
o business model - one shop, all bricks and mortar? e-commerce/bookings? franchise?
* Description the features & benefits of your product/service
o features: standard services? bridal hair services? beauty? satisfaction guarantee?
o benefits: quality colour that lasts? worry-free wedding day?
* What other potential products/services may evolve out of the original product/service?
* How might you be able to use the internet for the business?

Marketing Plan

(see marketing planning for more detailed information and tools)

* What is the exact market and size the business operates in?
o (hairdresser) market size - 99% of population
o specific market - geographical area? is one of your services so specialised people will travel for it?
* What are the key opportunities to be taken in that market?
o are you the only (hairdresser) business in the area (usually look at 5km radius) (Is there a lack of bridal hairdressers? What about a particular ethnic group with special hair needs?)
* How will the company make the most of those opportunities?
* Description of the overall Market & Primary Market Segments
o Overall (hair dresser) market (- people with a need for a cut)
o Primary segments - children? professional women? people living in 5km radius?
* Detailed Description of Market Segment/s targeted
o Which groups of people will you try to attract? Describe them (include age, income, residential area).
* Target & General Market Trends
o what are the trends (in hairdressing) for these groups?
o what are the trends (in hairdressing) generally?
* Market Research
o what do your customers say they want?
* Customer Buying Process
o what raises a customers interest (in an appointment), and what is their thinking process and behaviour up to and after their purchase? (this is important, because you may identify a barrier for customers wanting a haircut that with planning you can overcome - which makes your business better than others.)
* Entry Strategy (initial market penetration - if new business)
o how are you going to get established in the area ? will you advertise? run a promotion? (what about a ‘free haircuts for everyone’ day?)
* Sales Process to be used
o Role of branding, if important
o How will branding be achieved?
o How potential customers be reached?
o How (and why) will the products be priced.
o General statement on advertising and promotion
o Customer Service Policies

Financial Plan

(see financial planning section for more detailed information and tools)

*Financial Statements (monthly for at least 12 months)
o Sales forecasts (Income forecasts - how much money are you going to make, and when?)
o Cash Flow Projections (money in - from sales forecasts - money out - expenses, rents, utilities)
o Breakeven analysis - when are you going to make back all the money you invested into the business?

also a good idea…

o Statements of projected Profit & Loss
o Statements of projected position (Balance Sheet)

* What do your financial projections say? How much money will you need to start? how soon will you break even? how many sales do you need to be profitable?

* How much do you need to deliver this great business opportunity anyway?

A wise business owner will also spend some time considering:

Industry Analysis

(see marketing planning for more detailed information and tools)

* Industry Size
* Life Cycle Stage of Industry - Future outlook/trends
* What is the profit potential - sales patterns and gross margins?
* What are the barriers to entering this market? What might change these barriers?
* What is the role of technology in the industry, and how might this change?
* What is a typical Research & Development expenditure for the industry?
* Are Raw Materials easily available?
* Is labour easily available?
* Are there any labour management issues?

Competitor Analysis

(see marketing planning for more detailed information and tools)

* Number of competitors
* Nature of competition? (eg.Fragmented, Monopoly)
* Conditions of entry/exit of competitors
* How do competitors differentiate themselves?
* Comparison of largest 3-5 competitors on both differentiators and key success factors in industry, using a matrix format

Other “How To” Resources:

Franchise Advice and Information Network - South Africa

Start your own business toolkit - USA guide (Washington state)

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