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How Do I Build A Winning Business Plan?

August 2018

Article Courtesy of: Dawkins Brown Crowe Jamaica 47-49 Trinidad Terrace Kingston 5 Jamaica Tel Fax

876 926 5210 876 929 1300


How Do I Build A Winning Business Plan?

How Do I Build A Winning Business Plan?

Using sample business plans and their structure, along with studying as many business plan examples as you can, will provide you with the necessary framework to consider your business from every possible angle. Starting or running your business without a business plan is akin to being a human without a skeleton! Not only will using a sample structure highlight any areas you haven't fully thought through, but it will also provide you with a good idea of what makes a good business plan, and what doesn't. The importance of your business plan as a motivational factor in running or starting your business cannot be underestimated. You will find that your commitment continues to build as you collect information, research and write each section. Your business plan should always accompany requests for Small Business Loans, and lenders or any kind of angel investor will simply refuse to consider your business proposal without one. Lenders and investors want to see your plan with the aim of satisfying key questions before they make their decision to grant funding or not.

Š 2018 Crowe Jamaica

www.crowe.com/jm


How Do I Build A Winning Business Plan?

Once you’ve commenced trading your small business plan will act as a steak in the ground, and help you measure where you expected to be against where you actually are. It will help you take corrective action as necessary.

Sample Business Plan Structure All plans should include at least the elements listed below, and perhaps additional sections depending on the type of industry. Executive Summary Company Background Products or Service Overview Unique Selling Proposition and competitive advantages The Marketplace Operations Leadership and management profiles including professional competencies Professional Support Risks and Threats assessment Financial forecasts including key assumptions Relevant appendices Collecting the information for all the sections is time consuming and sometimes difficult. The business section of your local library or Chamber of Commerce is always a good place to start research. Ask your friendly librarian about how to look up market research reports, and how to investigate competitors. If you are not familiar with spreadsheet software, constructing the necessary financial forecasts represents a significant hurdle. You have 2 choices: Pay someone to put part or all of the plan together for you, or a small investment in some business planning software. The advantage of using a professional is you will receive the benefits of their experience, combined with a professional looking plan. The disadvantage is that it won’t be easy to make changes, and more importantly, because you will not have been as involved in its preparation, you won’t be as familiar with its contents as you should be. Make sure to learn the contents well. One final tip though, remember it’s the quality of the information you put into it that determines what comes out.

© 2018 Crowe Jamaica

www.crowe.com/jm


How Do I Build A Winning Business Plan?

Competitor Analysis - Keep it Real Failure to identify competitors in your business plan is a warning sign to potential investors that either:-you've not done enough research; you haven't acknowledged the competition you face; or that actually the market is not large enough to support any competition. You're not going to find anyone to invest in your business if the latter is true. It is much better if you acknowledge realistic strengths and weaknesses of your closest competitors, and how you will address those with your business model. It also acts as evidence to the potential investor -as mentioned above - that the market is large enough to support a number of businesses. A perceived margin of safety that there's business there for the taking.

Competitive Analysis - Prove your barriers to entry In the part in your business plan which addresses competition, you must cover the area known as competitive barriers. Some businesses naturally have barriers that prevent upstart competitors from getting a look in. Take the oil industry for example. The nature of the business is such that development costs are prohibitive and the licenses for exploring viable sites are already in the ownership of the oil majors. This acts as a significant barrier for anyone fancying to start up business in the oil industry. This does not mean that new companies do not start, rather they are few and far between because the resources and expertise required to compete are high. In your business plan you must identify exactly what the barriers to entry into your business are and knowing these how you will prevent any actual or potential competitors from taking a large part of your customers away from you. Some examples of competition barriers include no availability of prime sites (take supermarkets for example), legal restrictions, import duties, expensive plant and machinery, exclusive distribution licenses etc. It is also important to consider the situation very seriously if you identify few or no barriers to entry. This may jeopardize the future growth or even viability of your business. How could you make it more difficult for competitors to take your customers. What kinds of things could you do. Could you sign them up to longer term contracts for example? Can you protest legitimately at every planning application of new competitors etc.

Š 2018 Crowe Jamaica

www.crowe.com/jm


How Do I Build A Winning Business Plan?

Competitive Analysis - Demonstrate your advantage It is convenient whilst analysing the competition, to turn the spotlight of analysis on yourself, and demonstrate how your competitive edge is truly razor sharp, to the point of being unfair. The typical kinds of assets that show strong competitive advantage include patented technologies and processes, proven management record of success, exclusive contracts with suppliers and customers that make it difficult if not impossible for competitors to compete on the same terms.

Š 2018 Crowe Jamaica

www.crowe.com/jm


How Do I Build A Winning Business Plan?

About us Crowe Global Ranked the eighth largest accounting network in the world, Crowe Global has over 180 independent accounting and advisory firms in more than 130 countries. For almost 100 years, Crowe has been making smart decisions for multinational clients working across borders. Our leaders work with governments, regulatory bodies and industry groups to shape the future of the profession worldwide. Their exceptional knowledge of business, local laws and customs provide lasting value to clients undertaking international projects. Crowe provides global reach on a personal scale. Firms are focused on the future and the client experience, working with clients to build something valuable, substantial, and enduring. Close working relationships are at the heart of our effective service delivery. At Crowe, our professionals share one commitment, to deliver excellence.

Š 2018 Crowe Jamaica

www.crowe.com/jm


How Do I Build A Winning Business Plan?

Crowe Jamaica Crowe Jamaica is a professional service firm offering a full range of Audit, Accounting, Advisory and Taxation Services. We are a firm of chartered accountants whose concept of service is to solve problems, exploit opportunities and turn advice into action. Our style is personal and our outlook progressive. We continually strive to create value for our clients. Established in 2002, we have become one of Jamaica’s leading accountancy practices and lead the field in the provision of advice to private clients and business owners. Crowe Jamaica is one of the largest public accounting, consulting, and advisory firms in Jamaica. Crowe Jamaica uses its deep industry expertise to provide audit services to public and private entities while also helping clients reach their goals with tax, advisory, risk and performance services. Crowe Jamaica serves clients worldwide as an independent member of Crowe Global. The network consists of more than 180 independent accounting and advisory services firms in more than 130 countries around the world. Our network of Jamaica offices (Kingston, Runaway Bay, Montego Bay and Mandeville) ensures that we can provide a local service backed by the expertise of a major national practice. Our firm provides outstanding service to our clients because of our dedication to the three underlying principles of Professionalism, Responsiveness and Quality. Crowe Jamaica is particularly known for our one – stop – shop concept that was, according to our client’s experience, of invaluable significance to those companies that are establishing their business operations in Jamaica. To respond to clients growing demands, we developed deep industry specialization together with innovative technology, which enables our dedicated professionals to create value for our clients with integrity and objectivity. Furthermore, membership in Crowe Global provides us the worldwide capabilities of a highly integrated network to deliver value to multinational clients doing business across borders. Our professionals are experts who all share a commitment to delivering technical excellence and the highest standards of client service. Relying on both international expertise and the local office strength, Crowe Jamaica approaches its clients in a comprehensive and responsible way. For information regarding our services contact us: info@crowehorwath.com.jm

© 2018 Crowe Jamaica

www.crowe.com/jm

How Do I Build A Winning Business Plan?  

Crowe Jamaica (www.crowe.com/jm) is one of the largest public accounting, consulting, and advisory firms in Jamaica. Crowe uses its deep ind...

How Do I Build A Winning Business Plan?  

Crowe Jamaica (www.crowe.com/jm) is one of the largest public accounting, consulting, and advisory firms in Jamaica. Crowe uses its deep ind...