'To accomplish great things we must not only act, but also dream, not only plan, but also believe'

Anatole France

A Business Plan is a management document that defines business goals and objectives, management strategies and respective risk analysis. The initial purpose of a business plan is to communicate the market opportunities available to the company, subsequent uses include Programme Management and Risk Assessment. The ultimate decision as to whether to go ahead with a new venture depends unsurprisingly upon many attributes, including the strategic importance of the targeted market and the financial viability of the project.

 

There are many books and papers written on the subject of business planning processes, all expelling the virtues of their own procedures and traits, however the basic principles do remain common:-

 

• Analysis - Market sector / Internal audit - Situation analysis
• Objectives - Clear business objectives for the intended project
• Strategy - Detailed strategy to meet the set objectives.
• Tactics - Tactical plans that implement the above strategy.
• Measurement and Control - How are we doing?- measure and improve.

An important point to remember is that Business Plans are unique documents to the organisation itself. Don't be tempted to use preformatted templates without careful consideration. As many have found, the problem with 'off the peg' business planning processes is they are generic models and they never quite seem fit the organisation - rather like a square peg in a round hole. With this in mind the secret of successful business planning comes as no surprise i.e. the architecture of business planning process must be in complete harmony with the organisation.

A successful business plan must therefore...

• Have the right format for the organisation
• Contain real information - that is factual and true
• Have management buy-in and support
• Have clearly defined objectives
• Contain a strategy that can be understood at all levels within the organisation
• Be reviewed regularly and kept up to date
• Have defined critical success factors
• Have commercial risk clearly defined and reviewed regularly
• Have an owner who is responsible and accountable for the plan
• Each section within the plan has its own action plan

Quality business plans are powerful documents and provide the company with genuine direction and guidance if used correctly, however business plans are often misused documents and fall quickly into disrepute. There are many reasons for this including:

• Plans are put together in haste and lack depth and credibility
• Plans contain fictitious information - a result of poor market intelligence
• Over ambitious sales predictions - the classic hockey stick profile - which never materialises
• Plans contain only forecast sales information - they do not identify any real prospects
• Sections of the plan are not supported by all product team members
• Plans are not kept up to date - 'a trophy for the shelf !' - thought of as a one time exercise - remember plans
• should be working documents
• No one person owns the plan - lack of any responsibility
• Individual sections do not have action plans associated with them
• Investment go-ahead does not provide funding for complete project - re-justification every financial period required
  

A typical Product Business Plan should contain the following...

 

Executive Summary

• Situation Appraisal - Business and Market Review
• Marketing environment - Market volume and value.
• Market developments and trends.
• Products, services, technologies, innovations.
• Proposed product portfolio. - Competition - Benchmarking.- Risk analysis.

Objectives and Strategy

• Objectives / Strategy required to address new and existing opportunities.
• Critical success factors.

Business Opportunities / Market Development

• Market opportunities.
• Sales prospects and market development.
• Market entry requirements.

Product Plan

• Product requirements - User specification.
• Objectives and Strategy.
• Pricing policy
• Product positioning.
• Features and benefit analysis.
• Life-Cycle analysis.
• Competitive advantages.

Research / Development Plan

• Scope.
• Development plan and budget.
• Technology road map.

Manufacturing Plan (if required)

• Scope.
• Objectives and strategy.
• Manufacturing plan and budget.

Sales / After Sales Plan

• Sales objectives.
• Sales strategy and tactics.
• After sales plan.
• Sales forecast and budget.

Marketing Communications

• Mar'com objectives.
• Advertising / Media planning calendar.
• Mar'com budget.

Resource Requirements

• Human resource plan.
• Budget requirements.

Financial Plan

• Funding requirements.
• Projected financial results.
• Key ratios.
• Sensitivity analysis.

Action Planner

  

 

More Information...

If you require further information regarding the above or would like to attend one of our professional workshops then please contact us via e-mail: info@productmanager.co.uk or Information Request Form.