Writing Business Plans

Good Planning

A wise man once said “Fail to plan and you plan to fail” Good planning is about being clearly focused (knowing exactly where you want to end up), understanding options , setting priorities and goals, mapping out strategies for achieving goals, and keeping track of progress.

Poor or no planning results in business ventures that are difficult to get resources for, that usually run into unforeseen problems (e.g. the money runs out), and that can’t be financially sustained. This section takes you through the various steps in preparing a business plan.

There are many approaches but typically, this plan will include:

1. A vision
2. A mission
3. A situational analysis and assessment of needs
4. The development of a set of goals
5. The development of a set of objectives to achieve those goals
6. A method of monitoring and evaluating what you are doing and what you have you have done.

Can I earn a living from my business?
Making a lot of money is often not the sole reason for starting a business but clearly, the business must make a profit. How can you tell if your business idea will work? Here are some questions to consider:
• Is there a market for the product/service?
• How are you going to sell your product/service?
• Who will be using the product/service? Is this product/service in sufficient demand to result in a profit?
• How long will it take to get the business running?
• What is the next step?

Benefits of writing a business plan
Writing down a plan, however basic it might be is critical to the success of your business. What are the benefits of a written plan?
• Writing down your ideas and thoughts allows you to see more clearly and enables you to focus on what is really important
• Makes it easier to identify goals & set targets
• Helps to identify areas where you might need additional advice/assistance
• Also helps to highlight areas where you may require training
• Encourages you to keep records/documents – this is vital for any business
• Ensures that decisions are made based on facts – it is easy to be unrealistic when looking at business ideas
• A well written plan should give a very clear outline of the business and its potential
• The plan might indicate that the original business idea is not viable 

A business owner should continually refer to the business plan – just because it has been written down does not mean that it cannot be altered.  The business plan should constantly be referred to and revised (where necessary). Circumstances change and the business owner must be flexible and must react to these changes. Referring to the plan can help to keep the business owner and business employees focused on the aims and objectives of the business.
Banks and lending institutions often require a formal business plan when dealing with applications for finance.

Here are some things to consider before writing a business plan. Answering these questions will determine if the idea will work in practice.
• Where will your business be located?
• Who are your customers?
• Who are your main competitors?
• What are the current trends in the industry?
• How much money will you need to start up the business?
• Do you have any personal money to invest in the business?
• Where can you get (additional) finance for your business?
• Who can assist/advise you?
• What are your goals?
• How are you going to achieve them? (time scale, individual tasks)

If the business idea is a realistic one, then the next step is to write a business plan.

REMEMBER

A business plan shows the probability of success of the business and your ability to make it work.

Starting Out

As with most businesses, the more preparation and research done in the early stages, the more chance the business has of succeeding.

There are some hard questions to be asked and serious decisions to be made, before embarking on any business venture.

Important Questions to ask yourself

 If you are interested in business, then your answers to the following questions are critical:
 Why do you want to get into the tourism business?
 What degree of commitment are you prepared to make - is the business to be run as a hobby or a full time business?
 What role will you be playing in the business?
 Do you relate well to people - can they relate to you?
 Are you prepared to deal with visitors seven days a week, including public holidays?
 Are you prepared to work long hours and be interrupted at any time of the day?
 What degree of monetary gain do you expect?
 What do you understand by customer service?
 What experience and skills do you have?
 Are you prepared to give up taking your holidays at the best times of the year?
 How will the business impact on your family?