It is said that anyone who fails to plan is definitely planning to fail. Planning is critical to success in any undertaking, especially business. Above all, the plan must also be results-oriented, which is the focus of this text titled “Writing Business Plans That Get Results” with the subtitle “A Step-by-Step Guide” written by Michael O’Donnell. O’Donnell is a business consultant for Promersberger Company in Fargo, North Dakota, specializing in developing marketing plans for the company’s clients.
As a staff member at the Center for Innovation and Entrepreneurship at the University of North Dakota, he worked daily with inventors and entrepreneurs.
According to O’Donnell, this text will show you how to create a business plan that works. He adds that the text will guide you on what to include in each section of your plan, the most efficient ways to evaluate your company’s products or services, marketing strategies, organizational structure, plans to achieve goals, strengths and weaknesses. of the competition, etc.
The author says that since a business plan is used for many purposes, i.e. as a development tool, planning and management guide, mission statement, sales document, etc., and is read by many different audiences, it is necessary to adapt it. each part to the diverse needs of bankers, venture capitalists, partners, vendors, accountants, etc.
O’Donnell emphasizes that you need to structure and organize the components of your plan for the greatest impact; anticipate all the questions business plan reviewers will ask; and critique and package your business plan for winning results.
According to him, you need to be comfortable with why you should go through the exercise of writing a business plan. He says that if he doesn’t understand the reasons for it and the benefits it will bring, he will in all probability do a less than adequate job and thus defeat his purpose before he begins.
O’Donnell adds that writing a business plan is definitely one of those hurdles you have to jump through. He stresses that your plan should reflect your ultimate goal and be able to accomplish a lot for you and your proposed venture. O’Donnell cautions against trying to do everything for everyone.
According to him, one plan simply won’t suffice for all possible uses, and most experienced entrepreneurs will write (or revise) a business plan at every stage of the company’s development. The most successful of these will write several plans, each tailored to specific players, O’Donnell says.
This text is divided into 14 chapters baptized as “Modules”, in addition to another section labeled as “Final touches”. Chapter one is titled “The Executive Summary.” Here the author says that the executive summary is a complete module and the subheadings should match the main headings or topics that he has covered in his business plan.
O’Donnell emphasizes that the entire summary should be clear and to the point. He educates that the language must be simple and demonstrate clarity of the management objectives. Above all, the summary should show opportunities, advises O’Donnell.
He says the opening statement should be attention-grabbing, and it should say something about being the first to introduce the product or the customer demands that are generated from your initial market research.
“Describe the nature of the business, i.e. type, location, form of business, duration and status of operation. Describe current milestones achieved and its financial results, i.e. achieve x amount in sales, evaluation and testing completed, prototype built State to which industry your product is directed”, adds this expert.
Chapter Two builds on the “Index” theme. O’Donnell suggests that the length should be one to two pages. He says the following is a list of topics or issues that you can include in your business plan table of contents, adding that depending on how important each topic is to your startup, any can stand alone as a section. separated.
O’Donnell advises that you can include sections such as the company; The industry; related products and services; Investigation and development; market analysis; competitive analysis; marketing strategy; processes and operations; and management and ownership. Others are manufacturing management, organization, and personnel; milestones, schedule and strategic planning; risks and critical problems; and financial data and projections, etc.
In chapters three through nine, the author discusses concepts related to the table of contents, such as the company and the industry; related products and services; Investigation and development; market analysis; competitive analysis; marketing strategy; and manufacturing processes/operations.
Chapter ten is titled “Management and property.” According to O’Donnell here, “Your readers will want to know how the company is run as much as who runs it. Show your knowledge and understanding of the administrative details.” He adds that he must explain the necessary personnel and how he will fill and train these positions. Include an organizational chart that illustrates the company’s structure, lines of authority, responsibility and delegation, O’Donnell says.
He says the suggested sequence of presentation in this segment of the business plan is the organization chart; administrative procedures and controls; staffing and training; and management control systems.
In chapters 11 through 14, O’Donnell analytically discusses such concepts as management, organization, and personnel; milestones, schedule and strategic planning; risks and critical problems; and financial data and projections. According to him here, this section is heavily scrutinized by potential investors and more sophisticated investors will conduct independent financial analysis of the company.
O’Donnell says this section should be comprehensive and compelling, and it should document the need for funds. Show that you will use the money responsibly and show how they will ensure your success, the author elaborates. He emphasizes that he must show that his projections are realistic, based on the margins between his operating cost and expected sales.
As already stated, in addition to these 14 chapters, O’Donnell also includes another section called “Final Touches” which includes exercises; recapitulation of what has already been discussed in the text, etc.
In terms of style, this text is unique. To engage readers and provide proper guidance, O’Donnell asks pertinent questions at the beginning of each chapter. By writing this book in a modular format, with each module designed to stand on its own, with the assumption that people collect, organize, and absorb information in chunks, rather than in large doses, the author displays stylistic creativity.
In addition, this text is practical and complete. The language is simple while the ideas are well presented.
However, the author uses many long sentences as well as coordinating noun phrases (nouns joined by the coordinating conjunction of adding “AND”) in succession. This syntactic structure makes it difficult to understand.
Taken together, the text is conceptually fantastic. It is a must read for all entrepreneurs who want their businesses to be successful and profitable.