Business Planning The Key to becoming Commercially Viable

Competent & experienced managers Capable of setting budgets Capable of analysing financial management reports Capable of setting service goals & KPI’s Familiar with strategic plans Premise

Disruptive environment Changing funding landscape Revamp business model Need to be commercially viable Embrace marketing & sales strategies Challenges

You cannot solve new problems with old ways of thinking Mantra

Business Plan versus Strategic Plan Strategic Plan Internal Document Goals Resources Budget KPI’s Business Plan External Document Used to drive future & growth Used to assess feasibility Secure finance Used to secure investors

Market Research Competitive Analysis Business Model Financial projections Management Team Action Plan Contents of a Business Plan

Apply to existing services where funding is now in hands of customer Apply to new products & or services to sell to existing customers Assess innovative social enterprises Business Plan = Feasibility Plan

Commercial idea Product or services New to Market Extension of expertise or existing services Product assurance / warranties Future opportunities What are you selling?

Feasibility Test CustomersCompetitorsPriceResources /Operations Financial Investment Need -DesireWhoHigh PriceExpertise R& D What are the Benefits Market ShareMedium PriceQualificationsCapital Psycho / socialUSPLow PriceProduct sourcing / design Cash flow Budget DemographicsMarketingROIDistributionKPI’s Capacity to buyStrengthsMarginsStaffingmanagement Why Buy from You WeaknessesVolumeITmonitoring Where are they buying now? Distribution channels Positioning / Brand SpaceProfit

Market Research Who wants or needs your Product Service? Who are they buying from now? Why would they buy from you? How would they buy from you? Price / ROI

Internal Sources Existing Clients; staff; External Sources Web searches, ABS, Council Directories, LGA profiles, profile id Competitive Analysis

Strengths Weaknesses Opportunities Threats Competitive Analysis

Product / Service Price Margins Easy to sell Competitive advantage Ideal customers Resources required Risk Assessment Business Model

Capital Budget Price / Margins Cash Flow budget Investment Financial KPI’s Management reports Financial Projections

Who Capacity Responsibilities Budget KPI’s Management Team

Target Market Marketing Mix Sales Forecast Marketing Budget Marketing plan

Characteristics of a good plan Realistic Factual Objective Concise

Poor Appearance Outdated Information Overly Optimistic Misunderstanding Financial Data Unsubstantiated Assumptions Ignoring Environmental Factors Common mistakes

Actions OutcomeAction required ResponsibilityTime Frame

BEC Southern Sydney - LGA’s Sutherland, Kogarah, Rockdale, Canterbury & Bankstown Web: becsouthernsydney.com.au Ph: Small Biz Connect - Providers throughout NSW Web: smallbusiness.nsw.gov.au Ph: or (02) – Online tools & templates Need Help