Van Morrison sings of simplicity in ‘Keep it Simple'. As we turn the tide from one from the most deep impacting recessions this country has known, start-up campaigns scream ‘go back to basics'. Even our favourite animated meerkat ends every ad with ‘simples'.
Based on my own experience it is clear that the fundamental need for simplicity in business has never been greater, particularly in relation to the starting point of any company: the business plan. So what constitutes a great business plan?
Consider the stance of any keen-eyed investor, mentor or bank manager and step outside of yourself when putting your plan together. Imagine you aren't an expert in your field and are starting from scratch. Construct the plan under multiple headings, including an easy-to-navigate contents page and appendices.
In terms of defining the brand itself, it is essential that you become your industry spokesbrand and have researched and quantified the market viability of your business. You should know how you are going to be differentiated within the marketplace as excellent rather than average.
Do some friends and family research and take every component of your brand into account prior to affixing a price tag. If the RRP is too high in comparison to the competition then look at ways of reducing costs or increasing the perceived value.
At all costs, be realistic and do your homework before banding around million pound forecasts. Don't be scared to present worst-case scenarios and consider how you will manage volume orders. Taking your brand to market swiftly and coherently should also be considered in terms of an outline marketing strategy with associated costings - a typical marketing budget is between one and seven per cent of anticipated turnover.
Research will help with structuring market viability and consolidation of financial strategies and systems. Particularly in the current marketplace, ask yourself if gearing is realistic or high risk. Would you invest in your business yourself? Be prepared to match fund any third party investment.
In terms of finance, ensure you have identified the correct power team: a reliable book-keeper for account consolidation, an accountant and possibly a tax advisor to ensure that your regular obligations to your staff and the Crown are met.
Don't try and become a lawyer or accountant overnight to save some money - this will cost you in the long-term. Invest money in the fundamentals and appoint an experienced lawyer to help formulate the basic contracts that you may need in relation to staff, suppliers, clients and investors.
As you document the progress of your business in ink, don't underestimate the importance of your exit strategies. This section may be closely scrutinised by an investor so don't be too rigid.
On the subject of change, regularly revise your business plan - as you knuckle down to the nuts and bolts activity, take time out to work ‘on' rather than ‘in' the business and go back to basics, remembering why you started up in the first place.
I practice what I preach: there is no business strategy that I share with my mentees or colleagues that I do not implement myself. When broken down business is simple: ensure that there is an identifiable demand for your product and how you are going to deliver this better than your competitors at a profit. A good business plan can make the difference between success and failure.
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