Introduction to business plansfor SMEs

Maggie WeaverShaftesbury Associates

The SME Business Plan

• What’s it for

• What’s in it

• How do we contribute

• How do we benefit

What’s a Business Plan for?

• “Selling” tool for getting financing

• First payoff: encourages realism

• Determine product or market niche

• Long-term payoff: management tool

Business plan websites

• Descriptive

• Table of contents

• Template

• Interactive (online)

• Software

• Sample plans

What’s in an SME business plan?

• Business overview

• Products/services

• Industry overview

• Marketing strategy

• Management & staffing

• Regulatory issues

• Risks

• Implementation plan

• Financial plan

• Executive summary

Interactive Business Plannerhttp://www.cbsc.org/ibp

Interactive Business Planner

Section 1 – Business Overview• Business history• Vision & mission statement• Objectives• Ownership• Location & facilities

Section 2 – Products/services• Products/services description• Key features• Production process• Future products/services• Comparative advantages in production

Business Overview – ownershiphttp://bsa.cbsc.org

Section 3 – Industry overview

• Research sources• Size of industry• Key product segments• Key market segments• Purchase process & buying criteria• Description of industry participants• Key industry trends• Industry outlook

Industry overview – getting luckyISA Reports http://www.stat-usa.gov

Industry overview – getting luckyInfoExport http://infoexport.gc.ca

Section 4 – Marketing strategy

• Target markets

• Key competitors

• Analysis of competitive position

• Pricing strategy

• Promotion strategy

• Distribution strategy

Section 5 – Management & staffing• Organizational structure• Management team• Staffing• Labour market issues

Section 6 – Regulatory issues• Intellectual property issues• Other regulatory issues

Staffing – labour market issues

Regulatory issues – example

Section 7 – Risks• Market risks

• Other risks

Section 8 –

Implementation plan

Section 9 – Financial plan

• Balance sheet• Pro-forma income statement• Monthly cash flow statement• 3-year cash flow forecast

Section 10 – Executive summary

How do we contribute?

• Information resources

• Examples

• Educate/promote

• Imagination

How do we benefit?

• Understand a client group

• Knowledge of the local business environment

• Contribute to economic growth

• Template to build our own business cases