In my last post the key features of the four different business structures (sole trader, partnership, company and trust) were outlined. The next step is to plan the direction of your business as planning will be one of the keys to its future success.
Planning is the ‘how to’ of a business and is written in a Business Plan (BP). A BP is designed to capture a realistic and practical picture of your business over the next three to five years. Your BP will provide you with a clear focus of where your business is now, where it is going, how it will get there and whether it got there.
Studies have shown that successful businesses are more likely to use BPs. This does not mean that developing a BP will guarantee a successful business, but it is ONE of the ingredients that make a business successful. The significance of a BP cannot be overemphasized.
The Business Plan
A BP is a ‘living’ document that is reviewed and updated regularly to reflect changes in both the economic environment and your own objectives and priorities.
The key components of your BP include:
Business details – This is where you outline your business structure, registration details and any licenses or permits your business holds.
Identify the services you offer – This is the ‘what your business does’ part and identifies the areas your business will work in.
Operations section – This section outlines how your business works on a day-to-day basis. It includes information about:
Financial strategy – This section includes information about your business financial goals, start-up costs, and projected cash flows. Your projected cash flow looks at your expected expenses and income over a specified period of time (usually over 12 months).
The Future – This section covers your plans for the future, your short and long term goals and expected rates of growth.
Exit strategy – This part considers how you will exit or leave your business. It is probably not something you like to think about it, but it is inevitable that one day you will exit your business. Whether you decide to close down your business, sell up, retire or transfer ownership of your business to family or a trusted employee, it is important you plan for that day.
Why not make a complementary consultation with me today to go through your business ideas.
So once you have prepared your comprehensive BP what is next?
The next step is to implement those plans, as well as, manage the day-to-day operations of your yoga business. This is the topic of the next business support post.