Writing a Business Plan

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Make time for writing your business plan...

“Solid planning is the foundation for any successful business.

“By writing a business plan, you clearly establish your vision, mission, business objectives and a lot more...

“Any solid business plan addresses, among other things, business systems to be implemented and especially the necessary controls (i.e. the checks and balances) to keep your risks under control, to survive and to grow your business.

“Business is more about establishing internal systems than anything else. You don't need fancy products to build a multi billion company.

“But a business plan takes time to write - agreed. However, by not making the time for business planning, you actually plan to fail” - Michiel Jonker (For more information, read our guide - Business Plan)

Message: This cartoon illustrates a business owner not having (and not making!) the time to write his business plan and to plan his activities as well as business systems and controls.

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Use your business plan to avoid business pitfalls...

“I am standing in a very long queue, waiting my turn to get into the seat of a fun ride. I will buckle up and face risks at an extremely high speed whilst enormous gravitational powers are at work. Exactly how safe is this…? the thought crosses my mind. I haven’t crossed the point of no-return… I can still turn back…

“Have you ever had the same doubts? Exactly how safe are these fun rides?

“Well, of one thing I am certain. The engineers, who design and build these fun rides, DO NOT TREAT THE INHERENT RISKS ASSOCIATED WITH IT, AS AN AFTERTHOUGHT! They try to pinpoint all the things that can go wrong.

“They identify and assess all possible types of accidents (threats), weak points (vulnerabilities) in the machinery and consequences (the effects of accidents). They try to minimize the possible occurrence and impact of accidents by identifying counter and protection solutions (controls).

“They do it by performing risk and control planning. Because these engineers are working for profit-oriented organizations, they, in effect, perform profit protection planning – realizing that low-quality (unsafe) fun rides would not sell, would expose them to legal actions, and would result in a loss of money, income, and potential income.

“Therefore, a great deal of PLANNING goes into the manufacturing of these fun rides! Their PLANNING makes the difference between safe or unsafe rides!

“By the same token, by including profit protection planning in a business plan makes all the difference in the business world; it is THE differentiation factor, separating successful and unsuccessful businesses.” - Michiel Jonker (For more information, read - Business Plan Essentials)

Message: This cartoon illustrates the importance of identifying your potential pitfalls and countermeasures in your business plan.

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Reap the benefits of a business plan...

“The process of writing a business plan reminds me of listening to an extremely boring business presentation... almost everyone is sleeping and it is only the very dedicated persons that are still awake and benefiting...

“To write a business plan is not always fun. You rather want to experience the adventure, start conducting business immediately... and leave the boring business planning stuff for later.

“However, you need to keep planning as the reward for a practical, reality-check business plan is BIG in the end.

“You cannot shoot from the hip; you need a business plan in this complex global society if you don't want to miss your target. Fact is... business is not as easy as it was 100 years ago.

“For example, all countries enact more and more acts every year, regulating and limiting business - in some instances seriously.

“Only by making the time and persevere through the boring process of business planning, you would be in a position to avoid the pitfalls, survive and to achieve business success.” - Michiel Jonker (For more information, read - Business Plan Information)

Message: This cartoon illustrates the importance of going through the trouble and time to write a business plan in order to profit from it in the end.

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Business risk appetite (philosophy)...

“A control is any countermeasure that gives reasonable assurance that it will prevent the occurrence of identified risks; OR detect the occurrence of identified risks; and then correct the negative impact (i.e. the loss or damage) as well as the consequential negative financial impact of the identified risks that have occurred.

“By implementing controls to counteract his identified risks, a business owner or manager has reasonable assurance that his profits and potential profits will be protected.

“Please pay attention to the words reasonable assurance. No control can give a business owner absolute assurance that it will prevent or detect a risk completely.

“The objective of the business owner is, however, to minimize profit erosion to an acceptable level; in other words a level corresponding to his risk appetite (i.e. his appetite for damage, profit loss or how much he is prepared to lose).” - Michiel Jonker (For more information, read - Business Plan and Risk Management)

Message: This cartoon illustrates the importance of considering your risk philosophy (policy) and to which extent you want to take risk, protect your profits as well as the need for including your risk appetite in your business plan.

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