8/20/19 Planning a Business Strategy Topic 5 COM203 Consulting and Freelancing COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy TOPIC OVERVIEW Business Plans Operations Plans Financial Plans Marketing Plans Pricing COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy Business Plans 1 8/20/19 COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy WHAT IS A BUSINESS PLAN? A business plan is a written document that describes in detail how a business, usually a new one, is going to achieve its goals. A business plan lays out a written plan from a marketing, financial and operational viewpoint. http://www.investopedia.com/terms/b/business-plan.asp COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy WHO IS A BUSINESS PLAN FOR? INTERNAL You Employees Others – contractors etc. to help them understand your vision EXTERNAL Banks Investors COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy BUSINESS PLAN A good business plan can help you secure finance, define the direction of your business and create strategies to achieve your goals. https://www.business.gov.au/Info/Plan-and-Start/Templates-andtools/Business-Plan-Template-and-Guide 2 8/20/19 COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy BUSINESS PLAN You should review it regularly COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy BEFORE YOU START You will have… Evaluated the feasibility of your idea through your SWOT Know your start up requirements e.g. legal entity, ABN, licences, permits, insurances etc Understand where you will can get assistance from Identified risks COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy WHY DRAFT A BUSINESS PLAN? Strategic planning: § Develop vision § Confirm values § Define mission statement – purpose § Set goals § Environmental scan: external and internal § Identify key success factors § Review goals § Develop and determine strategies § Create action plans – sets targets § Implement 3 8/20/19 COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy BUSINESS PLAN SHOULD INCLUDE: 1. Introduction 2. The Business Activities Goals or objectives Competitive advantage Key success factors 3. Operational Strategy 4. Marketing Plan COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy BUSINESS PLAN INCLUDES: 5. Financial Information 6. Management and Staffing 7. Structure and Support 8. Action Plans 9. Supporting Documents COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy BUSINESS PLANS There are no rules about what your plan should cover, the level of detail or an exact structure. https://www.business.gov.au/Info/Plan-and-Start/Templatesand-tools/Business-Plan-Template-and-Guide https://www.smallbusiness.wa.gov.au/business-topics/planningstructures/business-planning/ 4 8/20/19 COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy BUSINESS PLAN Components for your Assignment 2: § Business plan summary/ executive summary § About your business/operating plan § Marketing plan § Future plans § Financial plan COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy BUSINESS PLAN SUMMARY/EXECUTIVE SUMMARY Your executive summary is your pitch. The first paragraph of your executive summary should generally include your business’s name, its location, what product or service you sell, and the purpose of your plan. Basically, the first paragraph is an introduction to what you—and your business plan—are all about. Another paragraph should highlight important points, such as projected sales and profits, unit sales, profitability, and keys to success. COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy BUSINESS PLAN SUMMARY/EXECUTIVE SUMMARY If you’re looking for funding, investment or a loan, say so in your executive summary. Specify the amount required. Be persuasive Convince them to invest in your business idea. Write it last 5 8/20/19 COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy INCLUDE BUSINESS DETAILS Business Name/Proposed Business Name Business Structure ABN and/or ACN Business Location Date of establishment Business owners Owners Experience Products / Services COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy MARKETING PLAN Define your target market Show your market research How do you intend to attract customers/clients – why would this work SWOT Analysis Competitor analysis COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy FUTURE PLANS Vision Goals/objectives (SMART) Action plan – key milestones and dates 6 8/20/19 COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy OPERATIONAL PLAN Registration details Business premises Organisation chart – subcontractors, accountant etc. Innovation – IP strategy Insurance Risk management Legal considerations Operations – technology, trading hours, communications channels, payment types, credit types, membership and affiliations COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy FINANCAL PLAN Expenses – set up, maintenance, wages How will you source your funds for set up – personal, loan, investment Forecasted income for the first 12 months Product & services, description and price COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy SUPPORTING DOCUMENTS Market research – surveys/questionnaires Demographic data Financial documents CV Quotations or estimates Legal documents 7 8/20/19 COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy Pricing COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy PRICING How to Charge: 1.Retainer Fee 2.Project or Fixed Fee 3.Hourly fees plus costs 4.Payment by Results / Performance Fee COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy PRICING Consider: 1.Costs 2.Customers 3.Positioning 4.Competitors 5.Profit 8 8/20/19 COM203 Consulting and Freelancing Topic 5: Planning a Business Strategy REFERENCES http://www.investopedia.com/terms/b/business-plan.asp https://www.business.gov.au/Info/Plan-and-Start/Templatesand-tools/Business-Plan-Template-and-Guide https://www.smallbusiness.wa.gov.au/businesstopics/planning-structures/business-planning/ 9
