What is a Business Plan?
Business Planning: The Big Picture
1. DEVELOP A VISION STATEMENT
- vision statement focuses on the what of your business
- it should describe your idealized perception of what your business will look like under ideal conditions
KEY COMPONENTS of VISION STATEMENT
- Name of planned venture
- The product/service you plan to provide
- The target markets you intend to serve
Vision statement should be short (one/two sentences)
Vision statement should be easy to understand and easy to remember.
example: The Hockey House plans to provide a wide range of hockey-related products and services to casual skaters, minor league hockey players, community clubs and organizations, and competitive hockey teams and players.
2. FORMULATE A MISSION STATEMENT
- a mission statement focuses on the how of your business.
- it defines the purpose of the venture
- it outlines the reason for being for your business and provides some understanding of how your business will be operated-the Strategy
KEY COMPONENTS of MISSION STATEMENT
- What you business will do
- Its market focus, niche, or particular image
- Your planned location and the geographic market served
- How you plan to grow your business
- Your sustainable uniqueness or what will distinguish your business from others on a long term basis
example mission statement:
The Hockey House will provide a broad range of skates, sticks, pads, sweaters, and other related hockey equipment and services intended to meet the requirements of ice and in-line hockey players at all levels of ability; from beginners to semi-professional and professional. It will also sell related supplies and equipment such as goal nets and timers with a view to being the one stop shop for hockey in Manitoba and Northwestern Ontario. It will sell to individuals, teams. and community clubs through a retail outlet located adjacent to a major hockey complex in Winnipeg but will also produce a 4 colour catalogue and call personally on groups and communities outside the city. The principal competitive edge will be the breadth of selection we can offer and the quality of service we plan to provide.
3. DEFINE THE FUNDAMENTAL VALUES BY WHICH YOU WILL RUN YOUR BUSINESS
- Arguments often occur because members dont share same values-identifying values before will avoid future arguments
STEP 1: Each member should define he/his personal values
STEP 2: Consolidate the common values by which business will be operated
example: In conducting our business, we will implement our vision by conducting our affairs so that our actions provide evidence of the high value we place on:
INTEGRITY by dealing honestly with our customers, employees, suppliers and the community
RESPONSIBILITY: by taking into account the environment in which we do business, community views and the common good
PROFITABILITY by being conscious that an appropriate level of profit is necessary to sustain the business and allow our values to continue to be observed
VALUE by providing quality products that deliver value for money
EMPLOYEES by providing quality equitable opportunities for development in a healthy workplace with appropriate rewards.
4. SET CLEAR AND SPECIFIC OBJECTIVES
- to provide you with a yardstick to measure your ability to achieve your vision-measurable targets that can help you achieve the mission of your business
- usually objectives relate to: return on investment, market position/market share, projected stages of technological development, levels of financial performance
To Be Effective an objective should:
- refer to a specific outcome not an activity
- be measurable
- be realistic and achievable based on actual capabilities of the business
- contain a specific time deadline
example Hockey House
1. To generate $XXXXXXX in sales by the end of the year one
2. To achieve $ YYYY in after tax profits in year one
3. To increase inventory turnover from X to Y times during year one
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copyright 2001 Karen E.Hamilton