Planning for Your Business

Planning for Your Business

Success doesn't just happen. Have a "Business Plan" to pushing for success; a "Business Exit Plan" plan for the worst; and a "Continuity of Operations (COOP) Plan" to be prepared for everything.  This more a list of things you need to think about and plan in the process of running a business. 

 

To get your business started you only need a simple business startup plan. If you are trying to get investors and raise money you will need a full business plan. You should also do a full plan before the one year point of your business. A Continuity of Operations (COOP) Plan is necessary if the company has more than a few employees, multiple locations, or vital data.  Once your business is profitable you need a business exit plan laying out what you are going to do in the best and worst situations, this is necessary because getting your moneys worth out of your business and avoiding large tax penalties may need planning and positioning as much as ten years out, and in a bad situation you likely will not have time to find someone to manage the company or buy it before it becomes worthless. 

 

For this reason the following is a list of things you should take into consideration when planning your business.

 

 

Business Plan: Your business plan should plan for growth and success under normal conditions. Incorporating:

  • Business Plan

  • Business Startup Plan (for new businesses)

  • Mission, Vision, and Values Statements

  • The why, how, and what of your business

  • Team, Business, and Corporate Structure

  • Goals, Objectives, and Metrics

  • Business Strategy, Market Tactics

Business Exit Plan

  • You can’t live forever, so what are you going to do with the business.

  • Your business only ends four ways:

  1. dissolution (not recommended),

  2. bankruptcy (not recommended),

  3. sell, or

  4. pass on to heirs.

  • An abrupt loss in your leadership of the company if you die or become injured will likely have a significant impact on its value.

  • Buy-sell agreement/insurance: Pays to buy your business on behalf of your heirs, a trust, or a third party when you die or become incapacitated could be benificial. 

Continuity of Operations (COOP) Plan

  • Ensuring the continuous performance of essential functions/operations during an emergency

  • Emergency funds and plan to cover short term issues insurance for more serious issues.

  • You must plan for all areas that could likely impact your business:

  • IT and data

  • Property and equipment (P&C)

  • liability

  • Key employees: Long term absence of owner or key employee

    • Replacement of income

    • Pay operating expenses (employees and overhead)

    • Pay for work lost and to hire coverage and/or contract out work

Sample Business Analysis

  • SWOT Analysis of Team Structure, Business Structure, and Corporate Structure

  • GROW Goals / Business Strategy, SMART Objectives / Market Tactics, and Metrics

  • Industry Benchmarking and Porter’s Analysis

  • PEST external threat analysis for long term business outlook

  • Internal Business Analysis

  • External Business Analysis

  • Program/Project Evaluation

    • New Product or Service Analysis

    • Capital Expenditure Analysis

    • Cost, Scope, Lifecycle, Timeline, and risk Evaluation

    • Post CAPEX, New Product or Service Implementation

For more detailed information please read some of my other articles or contact 1 SMART Step, LLC.

 

Share on Facebook
Share on Twitter
Please reload

Featured Posts

What’s the real cost of investing?

July 2, 2017

1/1
Please reload

Recent Posts

July 26, 2019

September 25, 2017

Please reload

Archive
Please reload

Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Social Icon

Disclaimer: The information on this site is general in nature and provided for informational, educational, training and discussion purposes only; and is not legal, health, investment or tax advice. Under no circumstances does this information represent a recommendation to buy or sell securities.  Although we strive for quality we don’t guaranty the accuracy of the information provided and assumes no liability for any damages or loss arising from its use.

  • Black Facebook Icon
  • Black Twitter Icon
  • Black LinkedIn Icon

© 2017 by 1 SMART Step

Page created by 1 SMART Step