How to create a successful business plan

– Time now for Ask Kochie, where I answer one of your tricky business
questions and I’ve got some expert help today
with Cindy Batchelor, NAB’s Executive General
Manager for business. Cindy, good to see you again. Now, Genie has sent in
a question via video, let’s check it out. – Hi, my name’s Genie Pepper. Together with my husband,
we own Plum Collections. Plum produces baby
clothes, toddler fashion, baby sleep bags, and kids swimwear. I have done a business plan in the past but we are well overdue to do a new one, and my question is what
makes a great business plan and what tips would you give
us before we start to do one? That’d be great if you could
help us out on that one, thank you, bye. – Genie, that is a great question, and we get this question so
often, and Cindy, it’s a great reminder that every business
has gotta have a plan and it’s a living,
breathing document, is it? – Absolutely, and it’s
great to see Genie actually going back and revising that,
because so many businesses actually start with one
and then it doesn’t live and breathe, so that’s fantastic. So Genie really wants to
know what it is that makes a great business plan, so
you really need to start with the business and we
got a great explanation in the video about what that looks like, but also who is the target market and how are you gonna access
that market, really important. So what is your prediction
for revenue and your expenses and what’s growing and
what’s the market doing? That becomes really important
and also in a clothing-wear business like Genie’s
operating, really understanding what’s happening by product
line, because you may find that some things are growing
or selling and some things may not be, and you need
to adjust that potentially, depending on what’s actually
happening out there. – And when you lump ’em all in together, you can’t differentiate it.
– You can’t. – You have a gut feel but you’ve
got no empirical evidence, that’s a really good point.
– Exactly right. And also just, as you’re
doing your business plan, particularly over time,
don’t forget to include the experience you’ve
gained, what is it about you, about what you actually
bring to the market, and how you’re differentiating yourself, I think that’s critically important too. And particularly, if
you’re growing the business and you potentially
want to fund it as well. – Yeah, and it doesn’t have
to be onerous, does it, because a lot of small
business owners I talk to say, “Oh, it’s gonna take so much
time to do a business plan, “I’ve got it all in my head.” I often say, “You don’t
have it all in your head.” And it doesn’t need to
be 50 pages, does it? – No, absolutely not,
and given it’s a living, breathing document, it
does have to be something that’s accessible, that
you could easily refer to, and you can make adjustments,
so it can’t be 50 pages, it actually has to be a couple
of pages that really guides you to let you know
whether you’re achieving the success you’ve outlined
in your business plan. – Do you share it with other people? Do you share it with,
say, your accountant, and your banker, even? – Absolutely, and I think
it’s great to have advisors that you actually bounce
things off and they’ll also have experience of other
customers, similar to you, so really making sure, where
do I fit relative to others, I think it’s a great
opportunity to share it with those that are closest to you to help you make successful.
– Great advice, Cindy. Genie, hopefully that helps,
good luck with the business, keep us up to date with how it’s going and remember, you should
review and benchmark your plan at least once a year or use
it as a, almost a monthly refresher as well for your business. That’s it for this episode of
Kochie’s Business Builders. We’ll catch you next time.

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