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How To Draw Up A Business Plan | Business Plan Checklist

How To Draw Up A Business Plan | Business Plan Checklist


[rock music] – I need to show you some stats. I’ve sent out over 200
surveys, my assessment forms to businesses who’ve
wanted to work with me and typically, I see that
a vast proportion of them, 76% in fact, score themselves five or less on how they rate their business plan. And zero being that they
don’t actually have one so that’s 43% of people,
sorry 43 people out of 200 odd who don’t have a business plan. So and I bet probably
if you’re watching this then it’s more thank
likely that that’s you. So yeah, so we’re gonna quickly go through what actually constitutes
the business plan and how you can create a
very lean business plan and this isn’t about attracting investment or getting bank loans or
anything silly like that. This is literally just
about having a document that you can look back on over, you know, in a year’s time or probably every month and make sure that you’re on track. I also noticed it wasn’t
quite as high as 76% but there was some well
over 50% of people, also, were struggling in terms
of their goal setting. Business plan, goal setting,
both go hand in hand. So I bet probably if you’re struggling with your business plan, you’re
also struggling with this. So, what goes into creating
a lean business plan? Okay so the first thing is, one of the biggest mistakes people make with a business plan is they
create these great big tomes of information that basically, you know, they’re looking, you know, potentially, it would be useful if you
were going to get investment or trade on the FTSE 100
or something like that but the reality is don’t
need hundreds of pages of content to go into
a basic business plan. It needs to be literally
just like four or five pages. So we just wanna keep it short initially. And it’s as simple as that. So I’m gonna tell you
what you’ve got to put into those four or five pages in the next sort of
seven or eight minutes. But it does make it
look a little bit nicer if you’re documents, no
matter what they are, you’ve got some kind of branding in place, that the colours are right, it’s not just something
that you’ve chucked out into the ether from a Word document and one of the terrible templates which they’ve got in there. So you just need to make sure that you’re branding is on there and that’s just for you so
you don’t look at it and go, “oh my God, that looks
like a terrible document.” so do make sure you put
some branding in there. The first piece of actual content which you need to put in there is obviously a little bit
of information about you and what you want to do is
demonstrate your authority, your credibility, and why
people should buy from you. In terms of like it
could be your experience, whether that’s corporate or
running your own businesses, maybe some clients you’ve worked with or books that you’ve written, podcasts that you’ve been a guest on, how long have you been
working within the industry, what do you specialise in, all sorts of fun stuff like that. I said clients that you’ve
maybe done a bit of work with. Also some people are quite like, especially in the small
business community, you want to know a little
bit about the person who we’re working with. So do drop a little bit
of information in there about you because and I’ll explain why. Like some people are really
worried about personal stuff in there and it’s actually not a bad thing to put some personal information in there because we want to build a tribe, we want to build a group of
people who love what we do. So give them a few personal
facts about yourself because it just humanises you basically. Next up, so that first piece about you just needs like half a page maybe. Maybe a little bit more, maybe a page. Second page, then, is a bit about your products and services. Now this is another big
mistake I see people making. They go through and they
put these massive long feature lists in there and
they try and get their pricing absolutely nailed and all
sorts of fun stuff like that. But actually that’s
not the right approach. The right approach actually
is to talk more about like, in human terms, like very basic terms. So for example, I’m a business coach. I offer group coaching
and one-to-one coaching for small business owners. The outcome of coaching with me is that we will double your turnover within six months, okay? So what we want is, this
you know, common mistake people want to buy the drill and they look at the
features that they’re buying but actually the reality of the reason why we want a drill is very different to the reason why we
think we want a drill. So we look for the benefit
behind the benefit, basically. And actually the drill will drill hole, we’ll put that in the wall, that we’ll then put a Rawlplug in, and a bracket up and so we
can hang a picture on it and the picture was given
to us by a dead relative or something along those lines. Okay, so, we’ve gotta go, we’ve gotta stop thinking features and we gotta think of the outcomes that our products and services deliver. So, hopefully that’s kind of made it clear and literally you only
need, sort of, again, half a page or a page to describe
your products and services and what outcomes, what
benefits they produce. And then this is the next section, so you’ve got to identify
who is your target market. Now just a little clue, the world is not your target market, okay? The internet has created
this global marketplace, where there’s a lot of opportunity but the reality is, most
small business owners in Gloucestershire don’t
need to have clients from all around the world basically. We can survive quite well and quite nicely with 10 to 20 local
clients who are very loyal. Yes there are some enigmas out there who have global businesses,
world wide businesses. The reality is, for most
of us, that’s not the case. So we don’t need the world to
be our target market, okay? So S.M.E.’s. Big buck bear of mind. S.M.E.’s, small to medium enterprises are not a target market. There are 3.9 million
small businesses in the UK. Sorry there are 3.9 businesses registered in the UK at the moment. 9,000 of them are considered
to be large businesses, okay? That means that all of the
businesses are pretty much S.M. So S.M.E.’s are not our target market, it is still too broad. So our target market is
actually Bianca who is 48, recently waived goodbye to
her to grown-up twin daughters who have just started Uni. Having recently been made redundant from a fast-paced
marketing career in London, Bianca moved to the Cotswolds
and opened a coffee shop in Chipping Campden, et cetera, et cetera. So we’ve got to have a really clear idea about who our target market is. You can then start to
go a little bit deeper, so these are all sections of content you need to put into
your business plan, okay? Half a page to a page on each one of these things I’m talking about. So where do they hang out? So Alex loves listening to
Gary Vaynerchuk’s podcast and recently attended an
event run by Tony Robbins. At the weekends, he
secretly plays Fortnite and seems to like every
single post that’s appearing on LinkedIn relating to marketing. So now we can start to get an idea about how we can target
marketing advertising at Alex if we so wish. How many clients do you really need? Okay this is another section that goes into the business plan. So we have two choices here. Now, again, if you’re saying you need all of the clients, you are indeed wrong. If you are saying definitely
not all of the clients, you are indeed right. And if you’re thinking well
I have a very specific niche, so I do business coaching
for massage therapists, then you are definitely
in the right ball park because the reality is, if you help massage therapy businesses to double their turnover in six months, you can probably get a
really nice business going with just ten to twenty
clients running concurrently at any one particular point of the year. So we don’t need to market to everybody. We just need to find the
10 or 20 massage therapists locally to us who could do with our help. Okay, so we don’t need that many clients. Next up, so and this is kind
of coming towards the end of your lean business plan now, we just need to get
some basic projections. Like I see people with
these really complicated, like three year cash flow forecasts, with all of the overheads
broken down into minute detail with these really complicated
like formulas built into their spreadsheet and the reality is, like we don’t need to do
anything like that whatsoever in a lean business plan, okay? If we just focus on like
really specific goals, if our goal is basically just to get, to create 100,000 pounds
a year’s worth of revenue, if our perfect client is
worth 1,000 pounds a year therefore we need 100 clients
in the next 12 months. And then we can sense check that. We can say is this number realistic? Now if managing 100 clients
and marketing to 100 clients is gonna be really, really difficult, then we need up our price potentially and then market test it. Is the price realistic? Is the number of clients
we can get realistic? Can we get all those clients
in the next 12 months? We can sense check it, okay? So put these into your lean business plan and then at then end of it, ask the question is this
realistic or not, okay? So just to summarise
the lean business plan, keep it short, no more than
four to five sides of A4. Make sure that you use your branding and that it looks pretty, then we move into the sections of content. So put a half a page
a little bit about you and about your company. Next page a little bit about your products and your services, remember it’s about the outcomes
and not the features. In the next page identify
who your target market is, be granular, go into like
all the demographics, male, female, are the 45 to 54? Do they live in the local area? Are they further a field than that? Start asking the question
of where do they hangout? What sort of things are they reading? Who are they following? What podcasts are they listening to? All of that sort of thing. Ask the question of yourself
how many clients do we need and the answer is not
everyone, let’s niche and then finally to put together
some very simple forecasts based on your goals so
if want 100 grand a year, how many clients do you need in order to earn 100 grand a year? Now I focused very heavily
on client businesses, okay? If you want to know more
then go and tap me up, just onto robinwaite.com.

Comments (2)

  1. Need help? Check out http://fearless.biz/

  2. Interesting Robin, I’ve got a few different things in the one I developed. Ultimately it’s your USP and what you can offer your clients, and the map to get to your business goals. There can also be a personal plan where you map your own personal targets and dreams.

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