Planning for Your Business
Planning for Your Business [if !supportLineBreakNewLine] [endif]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 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:
dissolution (not recommended),
bankruptcy (not recommended),
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)
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
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.