without planning - failure is a complete surprise

Without Planning Failure is a Complete Surprise

Tim Meadows-Smith Mot ivat ional Wealth Creat ion Partner

Champion StartUp SuffolkChairman New Media Business Group

Chairman K2 PartnersChairman Secure Logiq

Without Planning - Failure is a Complete Surprise

Top 6 Excuses For not having a written plan

• I do not need outside funding – why bother• I know what’s wrong – I’m just not selling enough• It will be wrong anyway• I have it all in my head• I always deal with challenges as they arise really well• A business plan won’t help me after start-up


Top 10 Reasons For Business Failure 1. The maths just don’t add up

- Demand at the price does not add up to (enough) profit

2. The owner gets in the way - Stubborn, risk averse, conflict averse, perfectionist, greedy, self-righteous, paranoid, indignant, insecure……

3. Out of control growth - Added; products; markets; team members; borrowing…… less can be more

4. Poor accounting (you do not know what’s going on) -Flying blind always results in a crash - get accounting visibility

5. Lack of cash cushion -Stuff happens, pay, borrow, or go bust?


Top 10 Reasons For Business Failure (cont’) 6. Operational mediocrity -

Referral business is vital to success, who will refer mediocrity?

7. Operational Inefficiency - Over-priced labour, rent, materials, as economy tightens and competition gains

8. Dysfunctional Management - Lack of vision, focus, planning, standards. Add pressure and arguments

9. Succession Plan - Nepotism and favouritism, replace effective performers with incompetents

10. Declining Market - Failing to keep in-touch with what customers want to buy. Change the offer


The Biggest and Most Successful businesses do planning EVERY YEAR

Do you think they just like administration?


Top 7 Uses For a Business Plan1. Money

- Bankers, VC’s, Angels, all lenders need to understand your chances of success

2. Goal setting -The map for your vision sets milestone targets

3. Daily Operations - Policies, operating procedures, quantified daily tasks that add up to a profit

4. Foresee Issues - Test the feasibility of your idea, know it will work, measure results against plan

5. Customer centric - Research your customers, understand them thoroughly, supply a need

6. Value creation - Paying your bills and yourself is a start point, know how to create value

7. Leadership - Staff, advisors, mentors, all need to understand your vision, route map & current position - Business Sat-Nav


Advanced Marketing for Maximum Profits


Your Business Plan - The Essentials1. Idea -

What will the business do?

2. Market - Who will your customers be? What competition is there?

3. Operations - How will you deliver the idea? Promote it? Provide great service?

4. Financials - Can you earn more than you spend? How much cash do you need before you generate enough cash

internally?

5. Supporters - Do you have specialist advisors in each area? Can you partner? Team?

6. Review and Revise - Build in measurement, reporting and milestone review


Setting Your Plan Out1. Title and Scope -

Name of Company, Period covered

2. Executive Summary (something to hand to the bank)- Idea, Market, Operations, Financials, Supporters

3. Idea - ‘Elevator Pitch’ why anyone will buy from you - said in one minute or less

4. Market- Customers who? How many? Their profile? Data to back up your guess - Competition Who? How are you different? Strengths & weaknesses?

5. Operations - CEO who? Why best qualified? - Sourcing where you get it and how it is made (applies to services)


Setting Your Plan Out (Cont’)6. Marketing -

How will you promote your offer to your customers? Your plan…..Press…… how many press releases? Which publications?

Online…. will you have a website? Blog? Who will you link with?Social Media….. which? How will you use it?

Partners…. Who will you tie up with selling to same audience?You know who the customers are….. Show how will

you talk to them

7. Sales -How will you identify prospects?

- How will you follow up prospects? - How will you recycle rejections? - How will you close sales? - How will you handle up-sell?

- How will you manage customers?

8. Fulfilment- How will you capture orders?

- When / how will you get paid?- How will you deliver?- How will you handle enquiries and failures?


Setting Your Plan Out (Cont’)9. Infrastructure

- Which IT systems will you use? ……How will you support them? - What staff will you need? ……. Engagement, training, evaluation? - What advisory board will you have? …. How will that work? - What reporting will you have? - How will you review? ….. Re-plan? ….. Manage change?

10. Financials- Effort to generate orders ……… Convert effort to cost- Orders generated? …. Convert orders to £revenue - Cost of sales ……… Match sales with the £costs to supply

- Overheads …. Match staff deployed with cost of employment ……. List all outgoings and costs including rent, utilities, professional services and taxes

- Convert the profit and loss to cash flow

- Produce a balance sheet

- Set Assumptions, inflation, prices & changes


Key ObjectivesExamples

• Sales growth target• Make price increase stick• New product development• Key marketing achievement (new brochure / website)• Recruit partners• Set up new system• Win investment

Specific, Measurable, Achievable, Relevant, Time specific (SMART)

Isn’t that why we don’t do corporate?


WARNING plea!

Using Your Plan To Raise Finance?

Avoid giving a PERSONAL GUARANTEE …… EVER! – There will ALWAYS be another way


That was……

Without Planning Failure is a Complete Surprise

Key points:1. Planning is more important than the plan (so don’t buy one!)2. Leaders know where they are going and excite others about the journey3. Don’t wait until you are lost to turn your Sat Nav on