Business Process Improvement has gained ground in all sectors of business as an on-going program that is implemented from time to time. Periodically business organizations embrace this program to reduce the barriers that create obstacles to the work flow as well as to remove redundant processes that are outdated and do not add value to the current business operations. Organizations benefit from BPI in qualitative terms as well as quantitative terms for it helps reduce costs, increase efficiencies as well as reduce wastage and more importantly enhance the customer orientation and interface with .
Business Process Improvement has gained ground in all sectors of business as an on-going program that is implemented from time to time. Periodically business organizations embrace this program to reduce the barriers that create obstacles to the work flow as well as to remove redundant processes that are outdated and do not add value to the current business operations. Organizations benefit from BPI in qualitative terms as well as quantitative terms for it helps reduce costs, increase efficiencies as well as reduce wastage and more importantly enhance the customer orientation and interface with the entire Organization.
Business process improvement exercise involves the entire Organization, all its departments and processes across all geographical locations and business units. Launching a Business Process Improvement initiative would need the active support and sponsorship of the top management. Generally seen, BPI involves five distinct stages as under: Preparing for BPI Program to be unveiled in the Organization calls for the following actions: Program Initiation As in the case of any strategic decision making by an Organization, the BPI program would first need to be discussed, adapted and initiated by the senior management of the Organization.
Normally the Companies call for a meeting of the senior management directors and the Business Unit heads who will ultimately own the BPI process. The meeting called for would cover discussions on the following: • Over view of BPI Concept • Relevance of the BPI program in the Organization at current times • Establish the objectives and possible areas that would be improved with the BPI Program and the consequent overall benefit to the Business Unit The meeting should be concluded with an approval of the program and the acceptance of sponsorship by the Business Heads.
The meeting should also form and finalize a Task Force or an Executive Improvement Team and define the total responsibility of the team to initiate, implement, monitor and conclude the entire BIT program.
Appointing BPI Leader or BPI Team Once the BPI program is underway, the entire implementation can take from a few weeks to more than a year to run its complete course depending upon the business processes involved. Though the Business Unit Heads own the BPI program, they would not be able to focus on the program and be engaged in designing and implementing the program.
Therefore it becomes necessary to have an experienced senior manager or an equivalent rank individual with the right background, qualification and skill sets to be appointed as the BPI Leader for the entire duration of the program. This BPI Leadership would be a full time job lasting the entire tenure of the program duration envisaged. An ideal BPI leader should have the necessary technical as well as overall business operations exposure and experience in the Organization with the right soft skills and attitude to work with people across all levels and lead the teams.
It would not be practical to expect the BPI champion or leader to be able to initiate, design and implement the entire program on his own without the relevant training and orientation. This is where the management would need to engage external business process consultants and practitioners to work with the BPI leader on designing the program.
It also helps to send the BPI champion to attend few BPI training sessions to equip him to manage the program. Thus the stage needs to be set at the Management level to recognize the need for BPI program, to make a conscious decision to adapt the program and to initiate action to form a Management team and initiate the first action of appointing a BPI champion in the Organization.
Depending upon the size of the Organization and span of activity, the management may choose to appoint a team of two or three members as BPI Champions. Needless to mention that once the BPI plan has been accepted by the senior management and the Business Unit heads, the consequent costs involved in the program would be provided for and earmarked for the said purpose.
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best match making process business plan - The Business Planning Process: 5 Steps To Creating a New Plan
It’s tedious and time consuming, but it pays off. Companies who write a business plan are more than twice as likely to improve over the following year compared to companies who don’t, according to Bplans. The good news is you don’t need to spend days writing a business plan. A like will walk you through your business plan setup pretty quickly so you can develop your business idea and put together a solid pitch for your business. Or you can put together your business plan by hand – keep reading and we’ll go over everything you need to know.
In this guide, we’ll uncover the key steps to writing a business plan. For those who need a formally-written document, we also include a . Who Needs a Business Plan? The short answer? Everyone. A business plan takes all the key considerations of your business, from your 1-sentence pitch to your revenue model, and puts it in a single neat document. Whether you’re a new, established or evolving business, everyone needs to have these answers prepared and reevaluated over time.
The long answer? Only if you’re pitching to someone. Even though is something you’ll reconsider constantly (such as, when competitors come and go), it’s not always necessary to put it down on paper. The exception is if you’re presenting to an investor, customer, or potential partner/employee. In these scenarios, you need a complete and up-to-date business plan that follows a standardized format.
Next we’ll get into the different mediums you can use to write your business plan ( slideshow vs. word document vs. informal sketches), then provide a that covers each component to include. How Should I Write My Business Plan? A traditional 20-30 page paper business plan is generally only needed when requested from a bank or investor. Here’s all the common ways entrepreneurs write business plans today: • Slideshow – Illustrate your business plan with bullet points, images, and graphs.
A slideshow is easier to create than a fully-written plan, and is more visually-enticing. It’s a good option if you’re presenting your plan in person to an investor, customer, or potential hire. Check out our guide on the . • Paper – A paper business plan has the same components as your slideshow, but written in extensive paragraph form. This is often what banks and investors will request after they’ve heard your initial pitch and decided they want to move forward.
• Business Plan Software – Similar to a paper business plan, but featuring a stylish template, interactive charts, and a “click ahead” table of contents. Using business plan software like is generally much easier than writing from scratch, and allows you to create a more visually-enticing document.
Learn more on our . • One Page Business Plan – A short, 1-page business plan is a more concise version of a complete business plan. It’s used primarily when you don’t want to divulge the full plan but are starting a conversation with an investor, lender, or other party. You can write this on paper, or use business plan software like , which offers many . • Napkin– If you’re only using a business plan to consolidate your thoughts, and/or to get up to speed with a partner, any medium will do.
If it’s not being shared with anyone else, don’t fret about the formatting. Just get the important ideas hashed out so you can start doing the real work. Groupon’s business plan written on a napkin (source: Business Insider) Business Plan Template: The 9 Components Regardless of the medium you choose, or whether you’re writing a one-page or full-length business plan, there’s 9 key components all business plans include. While all of these should be considered, you may emphasize, skip, or move around some sections depending on your particular situation: 1.
Intro / Executive Summary The first part of your business plan is a brief summary of your business: What you do, your products/service, your progress so far and future plans. Start it off with your 1-sentence pitch. This is a bite-sized description of your business that explains your unique approach AND leaves the reader’s mouth watering. Here’s an example from a winner of 2012 one-sentence pitch competition: “A SafeWayHOME is the world’s first 24 hour designated driver mobile application that provides users with 3 designated drivers, and a 24 hour taxi service that is available anywhere in North America.” The rest of your executive summary should briefly explain your company’s story and introduce your specific products/services/locations.
Explain your accomplishments so far, and outline what you hope to achieve in the near future. Tone and style matter. For example, framing your business as a ‘train leaving the station’ is far more compelling than a business who ‘needs help getting off-the-ground.’ 2. The Problem & Solution “More than 40% of the United States is rangeland used for livestock, and the top concern of the ranchers who tend to them is ensuring an adequate supply of water… Every day, the rancher checks the water levels of his or her 20 to 30 water tanks.” So begins the business plan of Barn Owl Systems, a finalist in the 2016 .
It continues to explain how their product uses remote sensors to track water levels, thus relieving a great burden for ranchers. Explaining your business in terms of a problem and solution is necessary to prove why your idea matters. One of the biggest mistakes entrepreneurs make in the early stages is to solve a problem nobody has. Taking some time to explain the problem with factual evidence shows you’ve done the research.
You know the industry/market and are ready to make some waves. Also keep in mind, you don’t need to solve a major world issue. If your city doesn’t have a good pizza shop, this can be just as much of a “problem” – at least, in the context of a business plan. For evidence, cite specific conversations you’ve had with residents that expresses their interest for the type of product or service you’re providing.
3. Product/Services Overview In order to explain how your business “solves” the problem, you may need to get more detailed. Consider a separate section that highlights the “front-end” of your products/services – in other words, how your product appears to and is used by consumers. (You’ll describe the backend when you get into your business model.) 5-Step Process of One way to do this is to draw a visual step-by-step process. Think of the 4 to 6 main steps of how your product/service is used.
Then, illustrate the process with a simple graphic like the one above. Entrepreneur Patrick FitzGerald explains this in more detail, and provides more examples, in this . If you’re selling a physical product, you can take a different approach and simply display your product with arrows pointing to all the unique features.
Other ideas include a “before/after snapshot,” which illustrates how consumers went about a problem before and after the introduction of your product. Or, simply write a narrative that shows how your product can improve somebody’s life.
4. Target Market Describe your target customer based on personality type, income level, age, gender etc. Again, this shows you’re knowledgeable about the industry and market. It will also be helpful when you write your further below. Getting specific about your target market shows self-awareness. Claiming your target market for Bob’s Pizza Shop is “everybody in DuPage County, Illinois” will be a red flag to potential investors.
Narrowing this to “young adults and families with young children” is a bit more assuring, especially if you go on to explain how your zip code has a high concentration of this demographic.
5. Competitor Analysis Along with describing your target customers, you should outline the other businesses that exist in your space.
Although every entrepreneur dreads to reveal their potential challenges, comparing yourself to competitors drives the point home on what makes you unique and advantageous. It’s also something your audience will expect. It’s incredibly rare for a business idea to be so unique that there are no existing competitors. If truly nobody has thought of the idea before, it will beg the question, “maybe this isn’t such a great business idea?” : Competitor Analysis Table Guillermo’s Ristorante Pizza Hut Patch's Pizza Bob's Pizza Shop Distance (from city center) 10 Miles 3 Miles 7 Miles 0 Miles Price $$$ $ $$ $ Quality Gourmet Fast Food Middle-Market Middle-Market Selection Small Large Small Medium Delivery?
No Yes, $3 Yes, $2.75 Yes, $2 (free on orders over $20) Liquor License? Yes No No Yes Once you have some competitors in mind, organize them in a neat table like the one above. Make sure your business is on the far-right side, as this is the standard format for competitor analysis tables.
If you’re still having trouble finding similar competitors, go with the next-closest product. You can cover businesses that MAY venture into your space in the future (perhaps after they find out about your idea). Or, explore businesses that attempted to something similar in the past, but were unsuccessful. This, again, is excellent opportunity to show why your idea is different and advantageous. 6. Business Model Here is where you get into the nitty gritty details.
You explain exactly how your business works – from sourcing materials, to finding customers, to managing your day-to-day. We can think of this section as a series of smaller plans (or models). Depending on your specific type of business, you may cover all or some of the models below: • Revenue Model – How are you going to make money? Though it may seem obvious, not every entrepreneur figures out exactly how they’ll earn money right away.
Even if you’re selling a product, it may take some trial and error to determine your exact profit margin. • Development Model – How are you creating your product? If it’s a physical good(s), describe the sourcing or manufacturing process.
If it’s a service, explain how you or your team will deliver. • Distribution Model– How do you plan to sell your product? Will you be selling directly to customers, selling wholesale, using distributors, etc.? • Marketing Model – How will you attract and retain customers? Describe all of your marketing initiatives, be it , , , , etc. • Operations Model– What will your day-to-day look like?
This is where you describe how your team will function on a daily basis, including the key positions and responsibilities. 7. Your Team Now, you describe your company and team in more detail. Who are they, and why are they rockstars?
What is everybody’s background, and what are their specific roles at your business? You should include details like alma maters and past ventures. The Team section is a chance to form a warm connection with your audience – so the more possible connections, the merrier. The team section can actually go anywhere after the executive summary in your business plan. If there’s a recognizable face on your team, consider bumping this section up towards the front, so your reader is sure to find them.
8. Financial Plan You’ve already explained how your business will operate and earn money. Now you need to break things down further by laying out your expenses and profits. If you’re an established business, this means your financial history (1 to 3 years), plus projections on the following year.
If you’re a new business, you’ll need to forecast your next 2-3 years. Example of a Profit & Loss Statement created using . A simple way to show financial history and projections is to create a profit & loss statement. Each row is a different revenue or expense, and each column is a different time period (typically months, quarters or years.) You can start with recent months/years, then move onto your projected revenue and expenses.
To create a profit & loss statement for your business plan, we recommend using . They have a simple tool that makes it easy to enter your financial data and craft a table. Plus, you can use drop-down menus that, when clicked, list specific revenue sources or expenses.
This from LivePlan explains specifically how to create one of these charts using their software. 9. The Ask If you’re presenting your proposal to a specific person, bank, or institution, don’t forget to end with the question. Whether it’s a loan, equity, or partnership you’re looking for, be sure to explain this and formally make the proposal. You don’t need to lay-out everything just yet. You can leave many details up to negotiation, like equity or repayment terms. Just make sure you’re asking the ‘big picture’ question, like the amount of funding you need.
A company that doesn’t know how much money they want may sound unserious. Why Use Business Plan Software? If you want your business to have some presentation value, we highly recommend using a program like .
Whether you’re creating a slideshow, 1-page plan, or full paper document, LivePlan has a huge selection of templates that help you save a lot of time compared to writing from scratch. Plus, you can add engaging features like graphs and diagrams and financial charts. In fact, we’ve personally used at Fit Small Business for our applications to lenders. LivePlan’s drag and drop editor. provides instructions & examples for each section of the document. With the LivePlan editor, you work section by section.
After selecting one from the left-hand column, you can use a drag and drop editor to write text and add images, charts or graphs. Further up, LivePlan provides instructions and examples of what other business plans included for that particular section. The Bottom Line A business plan is a collection of ideas, goals, and research about how to run your business. It matters less how you write it, and more that you’re simply asking and answering these questions. If you are sending your business plan to a lender or investor, however, be sure to follow a standard format and include the necessary data ().
We recommend using , which will help you make a professionally-formatted business plan much faster than working from scratch. Jeremy Marsan Jeremy Marsan is a business analyst and staff writer for Fit Small Business currently specializing in small business healthcare issues and product reviews. When not helping small business owners he enjoys many artistic projects, including music performance/recording, blogging, creative writing and carpentry.
Comments (13) Disclaimer: Reviews on FitSmallBusiness.com are the product of independent research by our writers, researchers, and editorial team. User reviews and comments are contributions from independent users not affiliated with FitSmallBusiness.com's editorial team. Banks, issuers, credit card companies, and other product & service providers are not responsible for any content posted on FitSmallBusiness.com.
As such, they do not endorse or guarantee any posted comments or reviews. • michael This is a great read. A good business plan is very essential for the success of any business.
It clearly gives direction as to how the business should be and things that are necessary to kick it off. The importance of a good business plan cannot be over emphasized. It is necessary for laying veritable and useful steps on how to proceed with a business. There is something I discovered recently in my quest to searching for a good business plan. I saw this resource personnel on the internet and the service I got was really impressive.
Not only did I get a business plan at an affordable price, I also got a perfect job done. Goodluck to all striving entrepreneurs… Hi Okeke, While we can’t write a business plan for you as we are writers, but don’t do consulting, you might try working with a business coach who can help you get started thinking through your options and helping you write a business plan. Here are two articles that may help you find one. Best wishes. Laura, HR Writer, MAEd, ICFE Copyright © 2018 · FitSmallBusiness.
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We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. . Product or company names, logos, and trademarks referred to on this site belong to their respective owners.
Opinions expressed by Entrepreneur contributors are their own. Every business needs to have a written business plan.
Whether it’s to provide direction or attract investors, a business plan is vital for the success for your organization. But, how do you write a business plan? recommends that a business plan includes; • Executive summary - a snapshot of your business. • Company description - describes what you do.
• Market analysis - research on your industry, market, and competitors. • Organization and management - your business and management structure. • Service or product - the products or services you’re offering. • Marketing and sales - how you’ll market your business and your sales strategy. • Funding request - how much money you’ll need for next 3 to 5 years.
• Financial projections - supply information like balance sheets. • Appendix- an optional section that includes résumés and permits. However, getting started can be difficult to do.
So, here’s a seven . 1. Research, research, research. “Research and analyze your product, your market and your objective expertise,” Bill Pirraglia, a former senior financial and management executive. “Consider spending twice as much time researching, evaluating and thinking as you spend actually writing the business plan.” “To write the perfect plan, you must know your company, your product, your competition and the market intimately.” In other words, it’s your responsibility to know everything you can about your business and the industry that you’re entering.
Read everything you can about your industry and talk to your audience. Related: 2. Determine the purpose of your plan. A business plan, as defined by , is a “written document describing the nature of the business, the sales and marketing strategy, and the financial background, and containing a projected profit and loss statement.” However, your business plan can serve several different purposes.
As Entrepreneur notes, it’s “also a road map that provides directions so a business can plan its future and helps it avoid bumps in the road.” That’s important to keep in mind if you’re self-funding or bootstrapping your business. But, if you want to attract investors, then your plan will have a different purpose and you’ll have to write your plan that targets them so it will have to be as clear and concise as possible. When you define your plan, make sure you have as well. Related: 3. Create a company profile.
Your company profile includes the history of your organization, what products or services you offer, your target market and audience, your resources, how you’re going to solve a problem, and what makes your business unique. When I crafted my company profile, I put this on our . Company profiles are often found on the company’s official website and are used to attract possible customers and talent. However, your profile can be used to describe your company in your business plan.
It’s not only an essential component of your business plan, it’s also one of the first written parts of the plan. Having your profile in place makes this step a whole lot easier to compose. Related: 4. Document all aspects of your business.
Investors want to make sure that your business is going to make them money. Because of this expectation, investors want to know everything about your business. To help with this process, document everything from your expenses, cash flow, and industry projections.
Also don’t forget seemingly minor details like your location strategy and licensing agreements. Related: 5. Have a strategic marketing plan in place. A great business plan will always include a strategic and aggressive marketing plan. This typically includes achieving marketing objectives like; • Introduce new products • Extend or regain market for existing product • Enter new territories for the company • Boost sales in a particular product, market or price range.
Where will this business come from? Be specific. • Cross-sell (or bundle) one product with another • Enter into long-term contracts with desirable clients • Raise prices without cutting into sales figures • Refine a product • Have a • Enhance manufacturing/product delivery “Each marketing objective should have several goals (subsets of objectives) and tactics for achieving those goals,” states .
“In the objectives section of your marketing plan, you focus on the ‘what’ and the ‘why’ of the marketing tasks for the year ahead. In the implementation section, you focus on the practical, sweat-and-calluses areas of who, where, when and how. This is life in the marketing trenches.” Of course, achieving marketing objectives will have costs. “Your marketing plan needs to have a section in which you allocate budgets for each activity planned.” It would be beneficial for you to create separate budgets for for internal hours (staff time) and external costs (out-of-pocket expenses).
Related: 6. Make it adaptable based on your audience. “The potential readers of a business plan are a varied bunch, ranging from bankers and venture capitalists to employees,” states . “Although this is a diverse group, it is a finite one. And each type of reader does have certain typical interests. If you know these interests up front, you can be sure to take them into account when preparing a plan for that particular audience.” For example, bankers will be more interested in balance sheets and cash-flow statements, while venture capitalists are looking at the basic business concept and your management team.
The manager on your team, however, will be using the plan to “remind themselves of objectives.” Because of this, make sure that your plan can be modified depending on the audience reading your plan. However, keep these alterations limited from one plan to another. This means when sharing financial projections, keep that data the same across the board.
Related: 7. Explain why you care. Whether you’re sharing your plan with an investor, customer, or team member, your plan needs to show that you’re passionate, dedicated, and actually care about your business and the plan.
You could discuss the mistakes that you've learned, the problems that you’re hoping to solve, listing your values, and what makes you stand out from the competition. When I started my company, I set out to conquer the world. I wanted to change the way payments were made and make it easier for anyone, anywhere in the world to pay anyone with little to no fees.
I explained why I wanted to build this. My passion shows through everything I do. By explaining why you care about your business creates an emotional connection with others so that they’ll support your organization going forward. Entrepreneur Media, Inc. values your privacy. In order to understand how people use our site generally, and to create more valuable experiences for you, we may collect data about your use of this site (both directly and through our partners).
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