2. The 4 x 4 Plan
The Best Business Life By Far
Each Month
• Get 4 hours personal development
• Spend 4 hours set & review SMART objectives
• Gift 4 hours mentoring another business
• Buy 4 hours insourced skill locally
The 4 x 4 plan will lead to a better organised more focused,
better networked, more profitable business with a more
fulfilled business life.
Try it for 4 months and see the difference.
4. Top 6 Excuses For not having a written plan
1. I do not need outside funding – why bother
2. I know what’s wrong – I’m just not selling enough
3. It will be wrong anyway
4. I have it all in my head
5. I always deal with challenges as they arise really well
6. A business plan won’t help me after start-up
Top 10 Reasons For Business Failure
1. The maths just does not add up
Demand at the price does not add up to a (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?
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
plan every year. Do they just like admin?
5. Top 7 Uses For a Business Plan
1. 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,
your route map and your current position. Sat-Nav for your
business
Advanced Marketing for Maximum Profits
6. Your Business Plan
The Essentials
1. 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 it Out
1. Title and Scope
Name of Company, Period covered
2. Contents
Executive Summary (something to hand to the bank)
o Idea, Market, Operations, Financials, Supporters
Idea
o ‘Elevator Pitch’ why anyone will buy from you - said in one
minute or less
Market
o Customers who? How many? Their profile? Data to back
up your guess
o Competition Who? How are you different? Strengths &
weaknesses?
Operations
o CEO who? Why best qualified?
o Sourcing where you get it and how it is made (applies to
services)
7. Marketing
o 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?
o You know who the customers are. Show how will you talk
to them
Sales
o How will you identify prospects?
o How will you follow up prospects?
o How will you recycle rejections?
o How will you close sales?
o How will you handle up-sell?
o How will you manage customers?
Fulfilment
o How will you capture orders?
When / how will you get paid?
o How will you deliver?
o How will you handle enquiries and failures?
Infrastructure
o Which IT systems will you use?
How will you support them?
o What staff will you need?
Engagement, training, evaluation?
o What advisory board will you have?
How will that work?
o What reporting will you have?
How will you review? Re-plan? Manage change?
8. Financials
o Effort to generate orders
Convert effort to cost
o Orders generated?
Convert orders to £revenue
o Cost of sales
Match sales with the £costs to supply
o Overheads
Match staff deployed with cost of employment
List all outgoings and costs including rent, utilities,
professional services and taxes
o Convert the profit and loss to cash flow
o Produce a balance sheet
o Set Assumptions, inflation, prices & changes
9. Key Objectives
o Sales growth target
o Make price increase stick
o New product development
o Key marketing achievement (new brochure / website)
o Recruit partners
o Set up new system
o Win investment
Specific, Measurable, Achievable, Relevant, Time specific
(SMART)
Using Your Plan To Raise Finance?
AVOID GIVING A PERSONAL GUARANTEE
EVER! – THERE WILL ALWAYS BE ANOTHER WAY
StartUp Suffolk is a not for profit organisation sponsored by New Media Business Group
Enquiries: New Media Business Academy Limited, a not for profit company
The Enterprise Centre PO Box 656, Woolpit, Bury St Edmunds IP30 9WR Tel 0203 086 9386
Tim@NewMedia-Group.com