Regardless of what you are trying to accomplish – from finding new customers, to keeping great employees, to preparing for Ontario’s new Retirement Pension Plan (ORPP) – a properly documented and well-thought-out business plan can only make it easier.
Yet, surprisingly, many small business owners say they either don’t have a written business plan (40 per cent) or they only have a partial plan in place (34%).
Your advisor can help you get your plan out of your head and onto paper. Then you can use it to help guide your future business decisions. A plan will give managers, outside partners (including your banker and lawyer) and potential new investors a clear idea of what you’re doing, where you are going and how you plan to get there.
Starting from scratch? Here are some pojnts to consider:
– Overview: If you have prepared the plan for a specific purpose or person (for example, a loan request), state the purpose in the opening paragraph;
– What does your company do? Who is on the management team? How long have you been in business? Where are you located? Who and where are your customers? What’s different about your company, products and services compared to your peers/competitors?;
– What is your business trying to achieve? Think both short term and long term goals;
– Include a detailed financial report for the year to date, the previous 2 years and your forecast for the next 3 years;
– Assess your company’s strengths, weaknesses, opportunities and threats; and
– Include your business and personal goals.
Your plan should also detail the things that make your company a competitive force, an attractive investment and a desirable place to work. In addiiton to compensation for employees, consider current and future programs such as health benefits and staff training.
Ask your advisor about business planning and business development resources.
Provided by Dan Allen, financial advisor with The Heritage Group, Guelph.
