|
|
Business Planning: Development of the
Company Analysis
The main purpose of preparing a business
plan is to show you what you don't know about the plan you are
writing. The process highlights the areas in need of more attention
and research, and when done thoughtfully and honestly, preparing
a written business plan is a tool for evaluating your company
strengths and confronting weaknesses; checking out where your
company has been historically; evaluating the products/services
the company provides; analyzing the current market conditions;
and getting clear on where the company stands in comparison
to it's competitors. Many of these steps may seem unnecessary.
After all, you "know" where your company has been in the past.
Right? Maybe, but without the written analysis, our minds, through
selective memory or from simply going too fast, may leave out
information critical to the building of an outrageous plan.
Development of the company analysis is much
like doing your homework before a big test. It is the homework
phase prior to the development of your company's strategic plan,
the plan that will direct you and your team in obtaining your
established goals and objectives, for the next year. And the
success of the plan relies on a thorough, accurate, and honest
analysis of the company. So, do you really want to give the
company analysis anything less than 100%?
The outline for the development of a
Company Analysis is as follows:
- Historical Data: The historical
data portion of a written business plan is an opportunity
for the person writing the plan to learn and clearly get where
the company has been in the past. Where the company has come
from, what it has made it through, and how it made it through.
For those reading and utilizing the business plan, it is their
opportunity to learn more about the company. You want the
historical data to include: when the company was founded,
by whom it was founded, type of business, it's mission, history
of it's financial state, etc.
- Products: This is where you outline
the products/services your company provides, what they are,
who they are targeted too, etc.
- Market: The purpose of analyzing
your company's market is to get a clear view on where the
market you serve is at physically and economically. You have
to consider all of the geographic, demographic and economic
factors that can affect the way consumers perceive your company's
products/services.
- Competition and Position: This
section is an opportunity to analyze everything you know and
can find out about your competition. Who is your competition;
how does the products/services your company provide stack
up to those of your competitors and how are they different;
what position do you hold in the market as compared to your
competitors; what type of pricing does your competition apply
to their products/services and frankly, what makes your competition,
competition at all?
a. Cost comparison…
When comparing the cost of your products to that of your competitors
be sure and take into consideration product quality.
b. Key success factors…
This section is a look into what makes your competitors competition
and what makes them successful.
- Strengths and Weaknesses: This
section is incredibly important because this is where you
have to be standing when you write the second plan for where
you want to go a year from now. It is designed to have you
take a straight look at what your company strengths are and
the company weaknesses. Where are you vulnerable? What strengths
do you have that make others vulnerable to you as a competitor?
Preparing an honest and accurate company
analysis when considering weaknesses compared to competitors,
the current market conditions, past success and failures of
your products/services and where the company has been historically,
is key to your business plan ultimately serving as the powerful,
success-building tool it is meant to be.
So as you prepare your written business
plan remember: The plan is only as good as the thoughtful, honest,
and accurate manner it is prepared, and then owned and used
by not only you as a leader, but by your team.
|
