Feb 19-25 2009
BRW Magazine - Divine Intervention
Oct 16-22 2008,
BRW Magazine - Angels Hover in Downturn
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Febuary 2009,
ANTHILL
Magazine - How to
Write a Business Plan, Author Theo Afkoudias
In writing this article, my goal was to have readers think about personalizing the business planning process rather than taking a step by step ‘parrot like’ approach to writing a business plan by filling headings from some downloaded free template.
A key to answering the question “how to write a business plan” is firstly answering “what is a business plan?” You see there is no one answer. If you download or look at any 2 business plans their differences in size, content, nature, color, presentation, etc - would far outweigh any similarities. Where we all that our business ‘should ‘ have a business plan, I think the main reason most don’t is because most business owners don’t really know what a business plan is – because there is no clear answer.
So let’s start here. What is a business plan?
In its broadest description, a business plan is a document (we can agree that it’s at least something we do write – or do we actually type it?) that include elements of the past, the present and the future.
Beyond including elements of the past, present and future – the rest comes down to personalization. This is actually great news because with this knowledge, you can throw away the rigid, boring ‘must follow’ step by step instructions that lead you into the despair of business paining rather than business planning.
My post card business plan –If you do this with me now you will over come your fear of business plans. Use my content as a guide.
1. The Past – Describe your past and that of your business.
My name is Theo Afkoudias, I have an Accounting Degree and Masters in Marketing. I am a Director of www.businessplans.com.au. This business has been providing business planning services for 8 years.
2. The Present – Describe your present business in terms of the marketing used, human resources, operations (nuts and bolts / processes used) and a financial snapshot.
The business currently uses online marketing and relationship marketing, has 2 Directors, 1 Coordinator and 6 Consultants, standard office operations and revenue commensurate with servicing approximately 300 clients annually.
3. The Future – Describe your future business goals.
The business goal is to increase revenue by 50% over the next 2 years.
Is it a “good” business plan? It’s better than not having one at all and I bet no one else you know can pull out their business plan out of their back pocket and use it as a coaster.
But where’s the SWOT, mission statement, market analysis, 1/2/5 year objectives, etc, etc ,etc ???
If you’ve completed your post card business plan – you’re well on your way to a fully fledged A4 size multiple page business plan that may even include someone of these well worn items.
The good news is that your post card business plan has given you a very basic structure from which to expand, elaborate research or even just cut and paste into from other stuff in your pc.
What you include in which section may now be 100% personalized for the reader or audience you intend to show your plan to.
Here are some suggested ideas that could extrapolate each section and form your “Postcard+” business plan. Again, they’re suggested and you’d need to ask if any content considered is relevant to the audience.
1. The Past – Describe your past and that of your business.
- Bio on each director / manager with summary /full resumes as appendices
-Business history including all key milestones reached in any area of the business or major accomplishments
-Summary of all key financial data since business commencement; revenue, profit, margins.
-Key relationships across customers, suppliers, mentors, others that contribute directly or indirectly to the business.
2. The Present – Describe your present business in terms of the marketing used, human resources, operations (nuts and bolts / processes used) and a financial snapshot.
-Marketing – all your current marketing activity and budget. Online, print, radio, local newspapers, etc.
-Human Resources – organizational chart.
-Operations – nuts and bolts that drive your business. Processes, software/ hardware and key assets.
External Influences. For years we’ve been including in business plans in an almost stock standard manner ‘General economic conditions can affect business outcomes” type statement. Ouch! Ain’t it true.
Other influences may include:
Government policy changes -will that local government rezoning policy affect my 1000 unit property development?
Legislative changes - you can’t smoke that in Australia anymore?
Technological changes - do I really need to buy a blue ray DVD player?
Competitors – will a franchised bakery next door affect my bread sales?
Cultural /Social – Do I really need to translate that moussaka recipe into English?
Industry – Are you still holding on to your Beta videos?
Market – There will never be a market for small portable devises you load music onto and listen to on the way to work, at the gym, jogging, at family events and everywhere else. People will always prefer to focus on the sleeping business on the train going home from work.
3. The Future – Describe your future business goals.
Mission statement – why are you in business? Actually, you need to talk about you’re the second reason here , not the “to make money” reason.
SWOT analysis – strengths, weaknesses, opportunities and threats and what you’re going to do about them if they are negative and how you’re going to maximize them if they’re positive.
Customer Segments and your targets. Think people here. Describe the people groups that purchase what you’re selling. Geographic, sex, age groups, etc. Which group is your target and why?
Goal setting. Given your background + business past + any external influences you’ve discovered may impact your business + your current marketing / HR/ operations + elements of your SWOT + your mission + your customer segment + your target market … stay with me now …. what are your future business goals?
Typically, you may have a revenue / profit goal which has been determined with consideration given to all the elements that impact your business. What are the tools you’ll use to reach these goals?
Basically, there are 3 tools available for tweaking; marketing, human resources and operations.
Will your goals be reached by altering one of your marketing activities, changing staffing in any way or amending the operations of your business?
Can you afford my goals? Financial projections will soon tell you. Do your newly tweaked tools lead to a red or black figure given the timing of your projected sales increase?
If red, you will need to find a funder who will look at your business plan and say “yes I agree” and fund it or you will need to revisit your goals and the elements that impact them.
The Plug
If you like our approach to
business planning and want to investigate further, you may consider the 50
page Business Planning Trilogy Workbook which is available on our
web site, www.businessplans.com.au The
Trilogy Workbook has been written by my firm and aims to guide customers
through each section of a business plan using a casual suggestive manner.
A free preview of the Trilogy Workbook is available on our web site.
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8 May 2008,
Investor Funding Expert Fronting Conference Workshop
Small business investor specialist and Director of Investor Funding, Theo Afkoudias, will be one of the keynote workshop panellists to a 400-strong audience at the annual Ausmedtech08 conference from 12th May to 13th May.
Theo will be sharing his investor
funding knowledge, combining his expertise on how businesses are valued
before and after they become a business and deliver a light-hearted,
colourful and anecdotal approach to subjects that are more often
considered clinical.
Theo’s workshop will incorporate a case study drawn from various real bio medical businesses where catastrophic mistakes were made. The panel’s job is to consider the alternatives that would have bolstered the chance of success. Theo will give audience members a true picture of the complex nature of investor funding and the maze behind the entrepreneur/investor matchmaking framework and process, including a clear explanation of the 20/12 clause in the Corporations Act and the importance of the business plan for future planning and capital raising.
As Australia’s leading Medical
Technology Conference, Ausmedtech08, in Sydney, provides an avenue to
bring together industry players for learning, networking and sharing
experiences to better facilitate commercial success in the Australian
Medical Technology Industry.
According to Theo, the key to making
investor funding a successful facet in the start up world of any
industry is to be realistic about the value on offer to investors and
understand investors have unlimited options as to where they place their
money. “Whether you are an investor or entrepreneur, the key ingredient in
stepping closer to a successful business partnership is not having a
crystal ball but to have a crystal clear business plan that encapsulates
all the necessary information to pursue the next step,” he
said.
“An entrepreneur, for instance, needs
to shelve the psychics and have all his cash flow and firm assumptions in
print before even considering pursuing real investors.”
Established in 2006, Investor Funding is a leading provider of SME fund-raising intelligence and services in Australia.
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19th April 2008
Expert Helping SMEs to be
Investor Savvy
Small business investor
specialist and Director of Investor Funding, Theo Afkoudias, has created
an entrepreneur/investor matchmaking framework to educate aspiring
entrepreneurs on how to turn their business into an ‘investor
magnet.’
According to Theo Afkoudias,
starting up a new business is like beginning a new relationship.
“Start out cautious, maintain
your confidence, be street smart, but at the same time, inject a level of
energy that creates a harmonious balance, then persevere,” he said.
His ‘Has It Got Legs 11?’ is a
light-hearted adaptation of his 11 stringent small business investment
rules:
1. Pick Me Pick Me – Investors can’t be
sold or made to buy anything - the opportunity must compete on its own
merits.
2. Subprime Who? – An opportunity must
be considered in light of the current economic climate - it may no longer
be 'that' compelling.
3. Cuggi Shoes – Put yourself in the
investor’s shoes - if you had the money to buy cuggi shoes would you sink
it into your business - leave
it in the bank or buy more shoes.
4. Could You Hold The Risk For A
Second? – Are you personally risking anything in the venture? (But I’ve
put in $000s – and that is the investors concern
because?)
5. Out To Lunch - Who's Running The
Shop? - Are you and your mates the best people to be on the Board?
6. Shares Are Your New Currency – Use
it to attract the right people.
7. Til Death Do Us Part? – Do you have
a realistic exit strategy?
8. It’s Going To Be Worth Millions...
I Can Just Feel It – Shelve the psychics and have the projected cash flows
and firm assumptions – show me the money.
9. You Want How Much? – Provide a
business valuation to justify the amount you’re asking for against the
amount of equity you’re offering.
10. My Weakness Is l Like Chocolate – Know
your weaknesses and address them with a strategy prior to approaching
investors.
11. Only A Mother Could Love It – Get
non-related third party opinions from prospective customers and partners
on your business and product.
Established in 2006,
www.investorfunding.com.au is a down to earth provider of SME fund-raising
intelligence and services in Australia. A good analogy for what we do is
turning beat up old bongo vans into the shiny new convertable mercedes
that all investors can’t live without.
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