Slide 1 BSBMGT617 Develop and implement a business plan 1 Develop business plan 1.1. Review and evaluate pre-existing strategic, business and operational plan, if available 2 Business plan Contains...

Slide 1
BSBMGT617
Develop and implement a
usiness plan
1
Develop business plan
    1.1. Review and evaluate pre-existing strategic, business and operational plan, if available
2
Business plan
Contains thorough operational and financial information such as budget projections, which indicate how the organisation will resource its activities and be able to meet its objectives in the future.
Often covers a three year period.
Continuously modified as conditions change and new opportunities and/or threats emerge.
Business plan
Writing a business plan will enable you to:
Recognise your strengths and weaknesses
Acknowledge key areas where you need to develop expertise
Understand the financial risk involved in setting up the business
It represents the dynamic process of planning and reviewing the business agenda over time.
Strategic planning
Strategic planning is the process of:
Clarifying the role of the organisation
Prioritising the use of resources
Evaluating the internal and external environment
Determining how best to manage the upcoming changes and transitions
Setting out a clear direction
Setting concrete goals for the future.
Review and evaluate pre-existing plans
Identify the purpose of your previous strategic, business and operational plans
Identify and review the essential components contained in those plans
Identify the business goals and objectives as a basis for developing this business plan.
Develop business plan
    1.2. Analyse and interpret business vision, mission, values and objectives
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Mission statement
A mission statement should:
Be short, yet engage with employees and those outside the organisation
Define the beliefs or principles of the organisation
Give your customers a sense that they're buying into your vision when they purchase your products.
Vision statement
A vision statement defines what direction you wan the company to move in.
Mid-term to long-term future projections.
Should be concise and easily remembered.
workers daily activities will automatically become directed towards achieving the vision.
Goals and objectives
Goals:
are general statements of what you want to achieve, e.g. to capture a bigger market share
should be suitable, acceptable, understandable and flexible.
Objectives:
are precise, quantifiable, time-sensitive statements of what is going to be achieved and when, e.g. to grow market share by 10% over the next two years.
Develop business plan
1.3. Consult with key stakeholders
1.4. Review market requirements for the product or service, profile customer needs and research pricing options
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Stakeholders
Stakeholders include:
Shareholders
Board members
Staff/employees
Business partners
Technical advisors
Customers
Government agencies
Suppliers
Community from which business draws its resources.
Involving stakeholders
You could utilise stakeholders in the following ways:
A series of consultation meetings
Completing questionnaires
An open day with workshops
Creation of budget and project schedule
Identification of project risks
Planning for data management.
Benefits of consulting stakeholders
Decision making will be more informed by those who the actions will affect
Stakeholders will be more satisfied with the outcome, and may accept there is a need to compromise
Stakeholders will feel ownership of the project, and are therefore more likely to want the project to succeed.
Internal organisation environment factors
Financial resources such as funding, investment opportunities and sources of income
Physical resources such as company’s location, equipment, and facilities
Human resources such as employees, volunteers and target audiences
Access to natural resources, patents, copyrights, and trademarks
Cu
ent processes such as employee programs, software systems, and department hierarchies.
External organisation environmental factors
Competition – are there other organisations developing similar products to you in the marketplace?
Suppliers – the financial situations of your suppliers
Legal – how will changes to employment legislation impact on the running of your business
Economic – what impact will taxation, interest rates, demand, government spending etc. have on the business?
Technological – how will product innovation and advances in production technology impact on your business plan?
Profile customer needs
You could improve understanding of customers by:
Put yourself in your customers’ shoes - everyone from the front desk to the delivery staff should focus on exceeding customer expectations
Use data – make the most of your customer database
Ask for customer feedback – make them feel involved in the development of the business.
Pricing options
You will need to consider pricing and discount policies
Set profit targets, pricing strategies and margins.
Consider presentation and display of products/services.
Is your pricing structure going to maximise your profits (how much are your customers prepared to pay).
Expect pricing to be at the forefront of negotiations.
What pricing strategies are your competitors are using?
Develop business plan
1.5. Develop performance objectives and measures through consultation with key stakeholders
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Performance objectives
Performance objectives provide tangible goals for your employees.
Performance objectives should include specific targets that are:
Dictated by the cu
ent strategy of the organisation
Measurable meaning they can be expressed in quantities, percentages, or dollars
Weighted in relation to their relative importance to the job.
Performance objectives
Features of key performance objectives:
Measurable – e.g. the employee should attract x number of new customers
Within a timeframe – the employee may be expected to achieve the objective within 2 months for example
Attainable – setting unrealistic objectives can be damaging to the employee and organisation
Clearly worded using action words.
Develop business plan
1.6. Identify financial, human and physical resource requirements for the business
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Resource forecast
You should ca
y out a resource forecast:
All planned activities, goals, and objectives, should be assessed for resource requirements 
If the forecast identifies areas where the available resources do not co
elate with the levels required, then this must be co
ected or the plan must be changed
Once you are satisfied that the required resources will be available, then the plan can be implemented.
Financial resources
Financial resources concern the ability of the business to fund its chosen strategy.
Existing finance funds:
Cash
Bank overdraft
Bank and other loans
Shareholders' capital
Working capital (e.g. stocks, debtors) already invested in the business
Cu
ent credit availability.
Human resources
An audit of human resources should take place and assess the following:
Existing staffing levels
The expertise and experience of staff
Job functions and roles
Flexibility
Distribution
Standards of training
Staff turnover.
Physical resources
Production facilities may include:
Machinery
Plant
Equipment/tools
Computers
Vehicles/ Delivery agents
Sales space.
Can cu
ent production facilities manage extra output?
Develop business plan
1.7. Consider any permits or licences that may be required for new activity
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Legal requirements
ASIC is the regulator for Australia’s corporate, markets and financial services.
You need to consult with them about:
Company officeholder duties
Annual statements
Changing company details
address
name.
New activities
You may require permits or licenses if your business plan involves new activities, such as:
Working at heights
Removing asbestos
Operating a food business
Running a business from your home or a mobile van.
Develop business plan
1.8. Write business plan
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Components of business plan
Title page
Business summary
Management/operations plan
Marketing plan
Strategy/operational plan
Financial plan
Management structure.
Tips for writing business plan
Research - having sufficient evidence at hand through research will make decisions more informed, and your forecasts are likely to be more accurate.
Time period – writing a business plan should not be rushed, set time aside and ensure you review it carefully; mistakes will seem unprofessional.
Be open - if your business plan is for an upcoming company, you should make it clear that you are estimating your finances.
Monitor performance
2.1. Communicate business plan to all relevant parties and ensure understanding of performance requirements and timeframes
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Communications plan
A communications plan provides you with the opportunity to communicate your business plan to all relevant stakeholders.
The plan will ensure performance requirements and timeframes are fully understood.
Put simply, a communications plan dictates who you should be communicating with, about what, in what form you’re going to do it, and how often.
Steps to communicate business plan
Set communication objectives
What do you want to communicate?
Who are your key stakeholders?
Developing key messages for each group
Developing communication tactics
Allocate budgets and responsibilities
Develop a communication calendar
Assessing your results and adapting the plan.
Segment stakeholders
Benefits of segmenting stakeholders:
Helps to clarify the nature of relationships
Provides an understanding of stakeholders
Helps to clarify how they are interacted with
Allows for enhanced communication between employees and other stakeholders
Reducing unnecessary communication will save resources and ensures that your communication effort is more likely to be successful.
Monitor performance
2.2. Ensure skilled labour is available to implement plan
2.3. Test performance measurement systems and refine, if necessary
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Develop a staffing plan
Follow these steps to assess your cu
ent staffing needs:
Assemble statistics on employee productivity
How much can the average worker do in each hour?
What is your maximum output in your busiest period?
Divide the number from step three by the average productivity rate in step two
Develop a plan to staff your business in
peak period.
Produce/deliver products/services
Outline your staffing requirements in this section of your business plan, including a description of the specific skills that the staff and management working for you will need to
ing to the table
Calculate your labour costs
Determine how much salary each employee will receive, and total the cost of salary for all your employees.
Pre-employment testing
Pre-employment testing can help to identify whether applicants have the competencies required for a role
This can save time and reduce costs in the enrolment process
However, testing has issues with validity – will it measure what it is supposed to
Also, will the test be a true reflection of the candidate’s skills?
Monitor performance
2.4. Ensure timely reports on all key aspects of the business are available, user-friendly and balanced in terms of financial and non-financial performance
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Audience
You will need to decide the best format for reporting key aspects. This could be a report or business letter.
Whoever your audience might be, you need to consider:
What do they know already before reading your report?
What do you want them to know after they’ve read it?
What are their backgrounds and
likely biases?
Key aspects
Financial accounting
Customer service
Internal business processes
Human resources
Training, learning and development
Support systems
Technical or other services
Suppliers
Specialist knowledge
Funding requirements
Obtaining of goods or services
Environmental issues
eporting
WHS
Quality Assurance
Balanced report
You should aim to make the report balanced, in terms of financial and non-financial performance
Financial information is important for stakeholders, as it includes profit and loss accounts, balance sheets, cash flow statements etc.
However, stakeholders also want to hear about non-financial factors, such as the skills of staff, training and development, and health and safety.
Monitor performance
2.5. Report system failures, product failures and variances to the business plan as they occur
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Reporting system failures
A failure reporting, analysis and co
ective action system (FRACAS) is a system you could implement to monitor product reliability
It delivers a disciplined closed-loop process for solving failures at the design, development, production and deployment stages.
FRACAS
FRACAS has the following benefits:
Provides engineering data for co
ective actions and preventive actions
Identifies deficiencies as they