The importance of preparing a Business Plan

The importance
of preparing a
Business Plan
Elias Bastas
Partner at gpl Solutions
Qualified accountant and business improvement
Educations qualifications
– Bachelor of Business majoring in Accounting from
The University of Technology
– Master of Commerce majoring in Banking and Finance
from The University of NSW
Professional memberships
Fellow CPA with CPA Australia
CA with The Institute of Chartered Accountants
Member of The Australian Institute of Company Directors
Registered Tax Agent
Elias Bastas
Extensive experience working with large
multinational firms such as IBM Australia, Revlon
Manufacturing and Alcatel.
30 years advising business leaders.
Well qualified to assist clients with business
consultancy, management accounting, taxation
and business valuations.
Clients include small start-ups, medium sized
businesses and large companies.
Why do you need a Business Plan?
A business plan is
the road map you need
to follow in order to
reach your goals and
achieve your objectives.
A research study by Paul Tiffany
states that companies with just the
strategic section of a business plan
have 50% more profits and revenue
than non-planning businesses.
- Business Plans For Dummies
Another survey found business
planning companies have 63% higher
revenue growth and 100% more profit.
Why you need to plan
Control future risks
Prepare for future uncertainty
Control business environment
Control business growth
Avoid sales crises
Avoid liquidity crises
Ensure people development
Consequences of not planning
Poor management systems
No overall vision
Lack of market planning
Cash flow issues
Low return on investment
Not understanding your competition
No established performance
• Inadequate financial planning
• Leads to probable business failure
Can a business plan guarantee success?
• No
• However the absence of one would
almost inevitably invite failure
• A business plan can help to
monitor how well you manage your
investment to maintain healthy
cash flow which is the life blood
of your business
If business plans are so important why do
so few people actually write one?
• It is human nature to put things off
and procrastinate
• You don’t know how to do it
• It’s a challenge for business owners
to put their assumptions on paper
and risk that they may be wrong
• Fear of failing to achieve goals
• It is difficult
A sound business plan gives your
business a focus and direction.
It removes uncertainty and helps you keep
the business on track to achieve your
An added benefit to having a good
business plan is that you can use it as a
document that you can present to third
parties - such as banks, real estate agents
and other institutions, in support of any
requests you make to them for any funds
and/or leases you may need to launch or
grow your business.
The ‘Key Word’ Approach
How much
Benefit to
Business success is more likely to follow
When you have a clear idea why you
are in business
You have a clear understanding of how
your vision fits into the broader scheme
of things
You know who your competitors are
You have a deep understanding of
your customers, their needs and how
to influence them
You understand how you can add
value to your clients
Components of a business plan
Mission – who are you and what services do you
• Vision – what do you want to achieve?
• Organisation chart – clear roles and
responsibilities of all employees
• SWOT analysis – strengths, weaknesses,
opportunities, threats
• Market summary – who is your target market
and what is currently happening in their business
• Competitive advantage – what sets you apart?
Components of a business plan
Strategic plan – what initiatives
should you undertake to achieve your
Financial plan – what are your
revenue estimates, budget and
projected cashflow for the next
12 months?
Marketing plan – what marketing
activities do you need to undertake to
promote your business?
How to get started
• Call me for professional help
• We are always here to guide you
• We aim to work together with you
as partners
gpl’s Business Plan Program
• Session 1: Information gathering,
diagnosis and Action Plans
• Session 2: Review of Action Plan
and Goal Setting
• Session 3: Strategic Fine Tuning
• Session 4: Assessment of
Progress and Future Direction
gpl’s Business Plan Program
• The 4 sessions are spread
over an agreed time frame
• We anticipate that each
session will be 3 hours face
to face with a gpl Solutions
Consultant and possibly 5
hours work from the business
owner and his team
• Flexible – Clients needs and
stage of development differs
so the process is flexible
gpl’s Strategic Business Plan
‰ Cover Sheet
‰ Executive Summary
‰ Table Of Contents
‰ The Organizational Plan
‰ The Marketing Plan
‰ Financial Documents
‰ Supporting Documents
Support Documents
Other Legal
Copies of leases,
Mortgages, Purchase
agreements etc
Letters of
gpl Solutions make it easy
• We provide diagnostic tools to assist in
the process
• We link the plan to specific
performance measures and targets
• We use these to track the execution of
your business plan
• We help you monitor and adjust your
plan so that it is always relevant and
never out of date
Things to consider
Financial reporting
Superannuation compliance
Accounting & management services
Audit & assurance
Financial planning
Mortgage & financing
Information technology
Level 1, 86-90 Bay St
Broadway, NSW 2007
Phone: +61 2 9211 5977
Email: [email protected]