Financial Business Planning- Your First Step to Success
So, you have been running your business on your own steam for the last few years and you are dreaming bigger now. Business expansion plan is what is on your mind.
Does that mean more staff, more time at this juncture? Not necessarily.
Does that mean more information on product/service, funds, competition, etc and more funds? Certainly.
Here are a few basic tips that you would certainly need to expand upon. It will work as a trigger point that you can take off from.
Define your Business as it is today:
Before you venture further into your business expansion plan, you must have a formal report card of your present business: the Product, Market Position, Financial Health, laws and regulations, compliance, strengths, opportunities for growth, the challenges ahead.
Ensure that you have applied correct, effective and useful management tools for this purpose. There are key business metrics used to understand and gauge a business. These are very sophisticated indicators of the present health of your business. They help you and your business associates to gain insight into your business from a common perspective. This reduces the risk of difference of opinions on many crucial issues.
For this purpose, the data collated of your business must be accurate. Ensure you have the right technology, tools and staff for this purpose. An honest and comprehensive database of all aspects of your business is imperative. This is essential for building strategy and planning ahead.
Shape up your business expansion plan:
While the very idea of taking off on your next big venture is exciting, you know there are multiple challenges ahead. You must be absolutely sure that you are on secure ground before you even begin to execute your next big dream.
If you are expanding just to survive or to beat competition, then this is not a profit-oriented growth plan. This should be identified as a contingency business plan. Be honest with yourself for all the right reasons. The present economic shakedown should be an adequate lesson for all of us.
Well, since you are going ahead with your business expansion plan now, you need to prepare your project report. There is a plethora of software available to plan out and shape up your reports. All you need is accurate, comprehensive and concise information of the market, competitors, technologies and funds available, etc. The challenge here is to source dependable information that you can base your decisions upon. You can outsource this information from external bodies. Do not ever think that you will be able to collate all this information on your own in this time and age of information explosion. There are a few dependable organizations doing just this job for you, it is their business, after all. For instance, you might want to check out FINTEL for current and reliable financial information related to privately-held companies.
For any such business expansion plan, funds are the propellers. If your basic project report is accurate, you have won more than half the battle. And in these times of recession, while institutes are wary, they are also looking for business. It is here that your reputation and ethics come in handy. The challenge is to convey it to the person across that you are worth trusting. Simple, you should live your ethics day in and day out.
Good Luck !