Business Planning Requirements Checklist

Business Planninq

Investor Requirements Analysis

1.0 Strategic Planning Overview

 Failure to concentrate on implementing and tracking your business plan after you have created it can have disastrous results!

 The success of your business plan depends on staying on course over a long period of time.  What often occurs after the business planning process concludes, is your company returns to its day-to-day routine, and "fire-fighting".  This eventually causes loss of focus and control over your business plan.  The business plan in turn has a natural tendency to lose its focus and eventually break down.  This is usually a result of the fact, not enough time and resources have been dedicated to implementing and tracking your business plan.

 You know your company will prosper by implementing your business plan.  However, you are probably spending most of your productive hours juggling your everyday business with meetings, management responsibilities, and the other hundred activities that fit into your busy day.  You find yourself pressed to find time, to strategically evaluate your business on your own, or even to properly implement your business plan, without some assistance. You will have to find a way to allocate some of the responsibilities and duties relating to implementing your business plan. 

 When you begin to implement your business plan, we recommend you meet with your senior managers, key staff and advisers to discuss the project in general.  Talk with them to cultivate their ideas and concepts for the project.  Ask them important questions about their functions and responsibilities, and what they perceive to be the future of your business.  Explain the purpose of this business plan implementation process, and what you want the business plan to accomplish.

 Start doing all the necessary research involved in the implementation of your business plan -- well in advance -- and determine an effective strategy and format.  Use  existing information and data to monitor your progress, and simultaneously incorporate feedback received from other members of the management team.

 Establish a system for you and your management team to properly implement and track your business plan.  This will require you set-up a process to watch the key indicators, on a weekly or even daily basis, where appropriate.  Company performance must also be re-assessed every few weeks/months/quarter. It is important to understand rising and falling fluctuations in the key indicators. This requires an effective measuring mechanism be in place, in order to avoid having your organization encounter obstacles over the years!

2.0 Requirements Analysis

ith an appropriate system in place, your business will enjoy an on-going success. This will entail effectively implementing and tracking your business plan's goals and objectives.   To prepare your management team for this undertaking, you will have to compile an appropriate checklist.  It will summarize the procedures you will have to follow, on an on-going basis.

 For on-going success, the necessary controls over the full business plan implementation process are necessary.  As a minimum, your management team should take into account the following criteria:

 •           How is your business organized? 

 •           Outline the duties of all principal personnel in your business.  You should highlight your company's operating plan or schedule for upcoming work , over the next few years, etc.

•           Should you incorporate other risk factors, including an appropriate insurance policy?

•           You must also identify key performance indicators that your management will watch continuously. If the measures fall out of line, then your managers must be able to determine the cause and act.  In each instance, the numbers should be linked to costs or sales. Often the measure is a ratio.  Nevertheless, the measures should support your business plan.

•           Some of the indicators to watch include:

•           The various risks that your company will inevitably face, in its development / implementation phases.

•           Risks should be identified, quantified and anticipated.  Risks include:

-        Failure to achieve budget targets

-        Bad debt risk

-        Cost control measures

-        Product specifications and any required modifications, etc.

-        Special applications programming/third-party product compatibility

-        Proprietary information / copyright disputes

Part of your implementation and tracking responsibilities will include the preparation and maintenance of a ‘mini business plan' -- in the form of a presentation package, for submission to your board of directors and/or senior management.  Remember, the comprehensive business plan should continue to be revised -- on an on-going basis - by your company's management team.

3.0 Implementation Methodologies

The proposed ‘mini business plan' can contain the following layout:

Table of Contents:

1.0 Executive Summary

2.0 Corporate Background

3.0 Management

4.0 Market Analysis

5.0 Products

6.0 Competitive Analysis

7.0 Marketing and Distribution

8.0 Use of Funds

Appendices:

A   Product Literature

B   Market Reference

C   Financial Projections

D   Financial Statements

E    Technology Analysis

To implement and track your business plan is only part of the challenge.  Your company must also translate the implementation process into concrete steps.  These steps should define how the company will gain success. They will also have to be quantified and anticipated.  The steps can be listed on paper, with check-points that occur every few weeks/months/quarter, etc.  Without a list and dates to mark progress, you and your management team might find that the various tasks associated with each step, have not been carefully thought out. 

Adopting effective implementation and tracking techniques will help identify the strengths and weaknesses in your organization.  They will also ensure that your business goals and objectives are implemented over time, with the desired results!