Q. I own a small business and wish to expand. I understand that potential investors would want to see a business plan. How do I write one that would convince others to invest in my business?
Miguel Hamber, Business Development Adviser, Industry New Zealand, replies:
A. A business plan is a
sketch of where you want your business to go. You put your dreams and your vision for the business on paper and build a plan of action that will help to take you from the present state to the achievement of your goals.
As you work through the vision and the plan, remember it is designed for others to read, to understand and to use as a tool to help you to achieve what you have written.
A good business plan usually has two parts: the key elements of your business plan, followed by a more detailed checklist focused on the specific aspects of business operations.
The key elements are a business brief that outlines the purpose of the business; your competitive advantage; a summary of your achievements to date; and an outline of your staff.
The checklist covers the plan in more detail and describes the implementation of the elements of the plan.
The areas that require detail in most business plans include: a business profile, marketing, operations, personnel, finance and planning.
Once you have completed your business plan, it must not sit on a shelf and gather dust. It must be a living document that is read and reviewed regularly.
Make sure your staff have a copy and that they understand it. They are thepeople who will help you to turnyour dreams into reality.
A number of books and publications are available to help you to build a comprehensive business plan.
One of the better guides is free from Industry New Zealand. It is published as part of the BIZ programme, designed to assist small to medium enterprises.
* Copies of Planning for Success, a do-it-yourself kit for developing a business plan, can be downloaded from the Industry New Zealand website or obtained by calling BIZ offices on 0800 424-946, or the Industry New Zealand freephone 0800 224-480.
