With the use of the option contract in a short sale, it is important to note that two transactions are happening back to back and not at the same time. You, as an investor are purchasing from the seller. Immediately after the first transaction, the end-buyer will be purchasing from you. Technically, the funds used in the first transaction are entirely different from the funds that will be used in the second transaction.

However, the two transactions happen one after the other so quickly that you as an investor won’t feel like you invested money at all. Passing through funding, called a simultaneous close, is not legal. You cannot use the funds from the second transaction to pay for the first transaction.

This is what a short sale transaction looks like with an option contract. Again, there are two transactions happening. The first transaction involves the original seller, who is probably an owner facing a possible foreclosure, selling to the investor – that is you. You, as the investor have the option to buy the property as long as certain conditions are met. In closing the deal, the terms stated in the option contract are followed. The first transaction is independent of the second transaction.

Remember that it is made public that you are the investor, and you must make it known to the public that you hold an option on the property being sold. This option must be released so that the end buyer in the second transaction can have the title transferred.

Upon the conclusion of the first transaction, the investor is free to sell the property to the end-buyer at an agreed upon price. Keep in mind that the price you can sell the property to the end-buyer for must be less than what was originally owed by the original seller. This is a provision to ensure security in the transactions, and that the transactions are done in good faith.

In a short sale transaction, the lender who will be funding the end buyer should know that a short sale is occurring and that the original owner of the property is not you but another individual. It also has to be disclosed that you have an option on the property. Everything must be transparent.

The important point to note here is that the option contract is working for you as a foreclosure real estate investor. The option contract and the notice of option of contract allow you to sell the property even before you have bought the property. The only time that you will but the property is when you have identified a qualified end-buyer for the property. This is very useful, as you will retain control of the property within the period specified in the option contract. This allotted time will allow you to find a buyer who will immediately purchase the property from you after you buy it from the original owner. That way, your risk is very close to zero since you have a sure buyer. That is the beauty of using an option contract in a short sale.

Writing a business plan for an online business directory is as important as writing a business plan for any type of business. A proper plan is essential to making an online directory a success. This will outline the type of business directory you will be running and how you will make it profitable. Below are a number of tips to writing a business plan for an online business directory.

1. The plan should outline your strategies on how you will make the directory a money generator. It will detail how the directory will work and how you will maintain profitability. It will also help you plan for unexpected obstacles, such as if one method of acquiring business listing does not work, how you will modify the strategy to make it more effective. It is important to regularly update your business plan to maintain competitiveness. Create short and long term goals and establish time frames for achieving specific tasks and set goals, such as the number of businesses that will post their listing in a week, or in a month.

2. The mission statement is a blueprint to having successful directories. It should define your values and objectives to maintaining competitiveness in the marketplace. It is important that you outline how you understand your target audience, including their needs and wants and how your directory will meet them. It must detail how you will attract customers to list their businesses.

3. You must detail your understanding of your competitors and how your directory will be unique and stand apart from your competitors’ directories. For instance, will yours fill a particular niche market? You need to outline your promotion plan and how you will implement your marketing strategies. You need to create a strategy that gives you a competitive edge.

4. You need to detail a comprehensive financial plan. You have to include such information as advertising and promotion costs and the expected revenue you will generate. You should outline all of the methods and programs you will use to effectively monetize your directory. This can include affiliate programs, offering paid listings…etc. You should create an effective budget that is practical and takes hidden or unexpected costs into consideration. You will need to break down your expenses and revenue to make sure you have a plan that generates more revenue that money paid out.

Starting a new online business directory can seem overwhelming as there are so many online directories on the internet. To stand out from the others, you need a strategic plan, clearly defined objectives, clear promotion and marketing plan, and a practical budget. It will help minimize the risks and maximize the benefits. A general guide on writing a business plan for an online business directory is helpful when planning to build a successful online business directory, but it is essential that you do your research and consult with others to make sure your business plan is a blueprint to success.

Business is a dream. We all want a business that would be guaranteed to be successful. Business is something that gives us a better life and a better future. When we think of business we see the bright side of it; we see the colours of rainbow, we see the big, black leather chair, personal office, secretary, meetings, appointments, travelling in style, five star holidays and a big, fat, bank balance. Power, position, decisions, respect; these are few of many more…but boss this is not easy, if you think it is easy then good luck!

Any business you wish to do requires many key factors in to considerations, such as; commitment, dedication, knowledge, experience, hard work, a support network, money, time, sacrifices, contacts, communication, skill, education, qualifications, back-up plans, business plans, budget, business proposals, forecasts, predictions, back-up loans or funds, insurance, accounting, finance management, knowledge of making, purchasing, storage, health and safety, policy and procedure, public liability insurance, vision, advertising, marketing strategy, sales skills, pricing, cost of production, level of profit, articulateness, honesty, registration of business, approval, inspection from authorities, customer service, complaints procedures, quality of product, security, risk assessment, stock, production, staff, transport, pension, wages, bills, bank loans, out goings, overdrafts…above all Luck, blessing, pray, mercy of God

The list can go on, but, if you are dedicated and sure of your business venture then these need not be an issue. The key factor of business is personal experience, profit, good management skills, quality of product/service and good customer service. The rest will come as it grows.

No business is guaranteed for life. The ups and downs are always part of business. The life of business is very unpredictable, some businesses are seasonal. Therefore, if you have one bad season then you have to rely on your business acumen and cut expenditure to survive until the next season.

Some businesses rely on public services, and those public services may be changes which in turn will affect your business. Some businesses will have too much competition which may have both positive and negative effects on your business.

The best businesses are new born businesses. When you have identified a need, if you can fill a niche, you will become a pioneer. In this circumstance you will enjoy a healthy profit. Many big businesses were very small and vulnerable once; even a strong, giant was a weak, fragile baby once upon a time.

One thing in business is risk. If you have invested all your money in a business and then you come into debt and have reached the end of your credit you may well have to close the business. Then you are in trouble. However, if you have the skill to get out ‘clean’ then you are still a winner. If you don’t have an instinct for judging risk and perfect timing you are in trouble.

In any business if you are successful then you will gain, and likewise, if you lose then it is your pain.

When it comes to budget planning you need a solid plan that will map out what it is you need to be doing with your money. If you don’t have a budget then you are out spending money and really aren’t making sure you have enough to pay your bills or even that you have enough set aside for emergencies or retirement. So, it is important to have budget planning software that will help you create your budget and follow it each month. That way you will spend only what needs to be spent and save whatever amount it is you want to save. Budgeting software is excellent because it does all the work for you!

The first and most important aspect of budget planning is determining how much money you make each month and how much you must spend. The “must” refers to necessities like food, gas, car payments, house payments, and those general living expenses that are necessary. Work out your budget based on these numbers. Once you know how much you make and how much you have to spend to survive then you just look at the difference to see how much money you have left over to save, play with, invest, or donate. When you know what is left of your income after bills each month then you will have a good idea whether you are living above your means or not.

Now, if the number that was left over from your income after bills seemed like a lot more money than you have at the end of the month you need to figure out where it is going. Sit down and think. Are you buying a fast food lunch every day? That would account for at least $100 a month for one person. Do you buy drinks at the gas station or magazines at the grocery store? Find all the little places you are spending your money and you will see very quickly that there are better ways to save and still get what you want. If you like to have a cold drink in the car then take one from home. If you like reading magazines then subscribe. You will pay for a year’s subscription about the same price of three or four newsstand prices at the grocery store. Doing little exercises like this will allow you to see where you waste money and how you can rein it in.

As you can see you can creating a budget is not that difficult and using forecasting software can also help you determine how much you need to save for future events.

If you’re reading this article, chances are you’re looking for some information about Tastefully Simple and you’re thinking about becoming a distributor. Before you join, I want to encourage you to go over this entire third party review first. In it, I’ll cover details about the company and go into how you can position yourself significantly ahead of your competition, should you decide to join.

First of all, let’s go over the company itself. Tastefully Simple is a company that sells various food and gift products through a network marketing business model. The company is based in Alexandria, Minnesota and was started by co-founders Jill Strahan and Joani Nielson in 1995. While the company had extremely humble beginnings, it has become a $100 million nationwide company with over 300 corporate employees and tens of thousands of distributors. In addition, the company has been ranked in the Inc 500 and co-founder Jill Strahan has gone on to become a documented business leader, published author and an inspirational speaker.

As far as their products go, Tastefully Simple markets many different types of food products. And while there are too many to cover in this simple review, I will mention some of the different product lines the company carries. Some of the product categories include different types of beverages, bread products, a variety of condiments and sauces, all types of desserts, a complete line of various salad dressings, different kinds of recipe books and various gift packages and gift baskets. From a marketing standpoint, the company’s online store makes the buying process very simple.

Now, let’s cover the business opportunity. You can join the company for as little as $89. However, it’s recommended that you join by purchasing the Blastoff Kit for $170, which includes enough products to get your business off to a fast start. The Tastefully Simple compensation plan provides upfront income from selling products. You can also earn override income by building a team of productive distributors. There’s also discount programs you’ll have access to as a distributor. On top of the compensation plan, there’s also various company incentives and promotions the company provides year round. In addition, the company rewards it’s top leaders with luxury trips to very exotic destinations around the globe. All in all, the compensation plan is quite fair and, for the right person, Tastefully Simple can be a fun and lucrative business venture.

In summary, Tastefully Simple is a credible company with a good business opportunity. Now, while having a solid company backing your business is obviously a good thing, your success will come down to your ability to personally recruit people into your organization, your ability to get customers and your ability to build a productive team of distributors. In order to do those 3 things effectively and efficiently requires that you get the right marketing training. My suggestion is that you utilize a self branding attraction marketing system to generate leads and brand yourself. If you can successfully combine effective offline strategies with a system to generate high-quality, pre-qualified leads on the internet, you can very well be on your way to building a wildly successful business for yourself.

Imprinted items have become a staple of any reasonable marketing budget, whether it’s a multi-million dollar corporation or a small mom-and-pop business. It’s no secret that these nice, little advertising promotional products buy good behavior. Even the local auto repair shop will send a promotional calendar and the bank may hand out imprinted pens.

The mall is full of stores with imprinted bags and even the Starbucks latte is corporate branded as a subtle reinforcement. Surveys show that the next generation of consumers like being bribed into buying, rather than entertained into buying, as in their parents’ generation.

Their grandparents’ generation was enticed by practicality and appearance. Today’s consumer is a complex being that wants the best of all worlds. Marketeers need to take heed and look at all available custom promotional options.

Imprinted items often come in and out of style in phases, but with a little bit of redesign, they can return with renewed popularity. For instance, promotional marketing lanyards quickly became a buzz idea when they first came out a few years ago — mostly due to the fact that people were more and more concerned about losing their pieces of identification, their passports, their keys and their cell phones.

They even started using custom promotional lanyards to hold business cards or employee badges. “Lanyards have really saturated the market,” admitted Charley Johynson, Marketing VP for SnugZ, “and we’ve been looking for ways to make lanyards exciting again, and to show people they’re good for more than just tradeshows.”

He explained that his distributor company is “spicing things up” by offering a one-time setup charge for new clients and allowing an unlimited number of color choices. Thanks to a new merger with Crestline, SnugZ offers a wide variety of dye sublimated lanyards with 13 background designs to add to the corporate logo (or the ability to submit original artwork). This functional gift is great for a variety of people of all age groups.

The good news regarding the influx of direct marketing promotions is that there are always exciting new imprinted promo items coming out! Many marketeers like to play it safe and stick with the imprinted pens, the t-shirts and the tote bags. However, for the internet savvy individual who’s willing to go the extra mile to impress the public, there is a whole world of unusual items that are sure to make an impact! “HorizonSources” offers “logo toasters,” which is every bit as intriguing as it sounds.

A custom imprinted message can be cooked right onto a slice of toast in a custom logo toaster! Another innovative idea is to take the successful corporate apparel formula but go beyond the traditional hats and t-shirts to offer imprinted promotional items like socks, tote bags or bottle cap opener/hats. At “4Imprint”, custom socks go as low as $3.50/pair and there is a wide selection of trendy tote bags, coolers and duffel bags.

Glow-in-the-dark tattoos go over well for a club promotion, whereas a poncho or umbrella might go over especially well during the rainy season in the Northwest. In the age of technology, imprinted promo items like USB devices and mousepads have become industry favorites. In New York City, Lifebrands condoms offered branding opportunity for 4 cents/package, which definitely caught a lot of attention among that 20-something demographic!

“Health and fitness” is another theme many marketing divisions are running with now. Imprinted stress balls have become hot sellers because there are so many colors, shapes, sizes and graphics from which to choose.

Additional health product imprinted items include: big inflatable exercise balls, pedometers, spa sets, pill timers, portable first aid kits, digital jump ropes, sports water bottles, back massagers, frisbees and sunscreen. Health and fitness products promote wellness, while promoting a business at the same time, making it a win-win situation for everyone.

Selling 14kt gold jewelry is an easy process. By knowing the ins and outs of the gold industry, selling 14kt gold jewelry can be a pleasant experience.

Selling 14kt Gold Jewelry

First, you will need to find all of your 14kt gold items which can include bracelets, necklaces, rings, earrings, and broaches. You will need to find the karat stamp on each piece to see if they are 14kt or if they are 10kt, 18kt or 24kt.

To locate a reputable gold buyer, you can use an online yellow pages directory or a major search engine. These databases also typically have ratings on the companies to make it easier for you to decide on which company to go with.

Selling 14kt gold jewelry for the most amount of money can be accomplished by using a trustworthy buyer. These type of buyers will treat you fairly and honestly. You can find them on the Better Business Bureau, which clearly lists their accredited businesses. These businesses have met strict guidelines and are continually passing monitoring tests.

The Best Gold Buyers

An online gold buyer will be the best option to sell your jewelry, as they provide the highest quotes and the fastest turnaround time. A physical store buyer such as a pawn shop or jewelry store, will only give you low quotes and take a lot of time. You will have to drive to their locations, stand in line and get pressured into a fast sale.

Finding a gold buyer with a satisfaction guarantee is ideal. This means that you will be guaranteed a good selling experience and that you are more likely to receive top dollar quotes. A gold buyer that his a guarantee policy is ready and willing to stand behind their company.

As you can see, selling 14kt gold jewelry is a simple and fast process that anyone can handle.

Online marketers are constantly looking for ways to improve their advertising plan and budget. This article will present you with some helpful tips that will stretch your dollars and increase your sales.

There are generally two types of people who get involved with home internet marketing business opportunities. The first are internet marketers with a budget and the second being internet marketers without a budget.

One of the most critical points is that you MUST keep your internet marketing advertising budget separate from your personal money. You cannot be dipping into your business budget for personal use. It just doesn’t work if you want your online endeavor to be successful.

So here’s how to implement a plan to become successful at internet marketing business opportunities on a shoestring budget.

Choose A Business Model

The first thing you need to do is to decide what kind of online entity or business you want to get involved with. Although developing and marketing your own product might seem like a good idea, I would recommend that you don’t do this at first. When you are new to online marketing, you’ll be better off promoting someone else’s product so that you can focus on learning how to run an online business.

Website Design

It is imperative that you have a website to tell prospects about your online opportunity. Although the company that you will be promoting will have their own website, you also have to have your own individualized site. More specifically, a lead capture page is what you need. This is a simple and concise one page site that tells your prospects a little about you and your company. You’ll want to include a video or audio message introducing yourself, a picture of you with or without your family, and a place for people to input their contact information. This carries us right into our next subject of autoresponders.

Autoresponders

Once your prospects enter in their name and email address on your capture page, your autoresponder will now go to work for you. An autoresponder works by staying in close contact with your potential clients by sending out automatic, well designed follow up emails. Your success will be in the follow up. An autoresponder will greatly cut down on the amount of time that you will have to be personally sending out emails.

Generate Traffic

Your next area of concern, and where you will spend the bulk of your time, is in generating traffic to your site. There are so many options for free or low cost advertising. Article marketing, chatting in forums, keeping an online blog, YouTube video production, and Craigslist ads are just some of your potential options. It is advisable to try out a couple and find what works best for you. After some of the free or low cost options start generating you an income, you will be able to reinvest and spend some money to advertise.

The difficulty that most people experience when
it comes to Starting a home based business stems
from one fact: they don’t have money to invest or
they don’t want to invest any money at all.
The internet has become a “money tree” for anyone
who really wants to make a living online. There
are some home based business models, anyone
can start without any budget.

In this article, you’ll discover 3 home based
business models you can start within a minute
without any budget and make a surge of immediate
profits. If you have a computer with an internet
connection, you’re 99% ready for the journey.

1- Home Based Business model # 1 Affiliate
Marketing

You can start an affiliate marketing within a
minute. What is an affiliate marketing you may ask?

An Affiliate Marketing according to Ewen Chia,
is “the promotion and advertisement of products
by a third-party(the affiliate), in exchange for
commission-based compensation”. In a simple words,
an affiliate marketing is a way of earning money
online by selling other home based business owner’s
products.

You market the merchant’s products, and you get
paid when your refferal buys from him. So all you
need here is first: choose your niche market; second:
go to google.com and type in the search bar
“niche + afffiliate program” and then register
to the program to get your unique affiliate link.

Your next step is to market the product.
There are many ways out here to do that. You can
start writing articles about your niche market
topic and submit them to article directories,
ezines directories. You can also use traffic
exchange sites to send traffic to your merchant
site. the main key to succeed in this home based
business is to consider it as a real business.
You need to have a plan for it.

Many people just register to an affiliate program
and wait for revenu. If you really want to make money,
you need to promote your affiliate link to get buyers.

2- Home Based Business model # 2: Online Freelancing

Everyboby has a skills or capabilities in certain domains.
You can share your skills or capabilities with other and
get paid. If you enjoy writing, you can write articles for
home based business owers and get paid by doing it.
If you can design a graphic header, an ecover or let
say you know how to use photoshop, you can start earnig
money online just by designing graphics for home
based business owner.

If you have a programming skills, you can start
your own home based business by solving problem related
to that topic and get paid. The list is unlimited.
So if you have any of above skills and ready to take it as a
real business, just go to http://www.elance.com, [http://www.forum.digital.com],
http://www.webmasterworldwide.com and you’ll find many home based
business owners who need your skills.

3- Home Based Business model # 3: selling items on Ebay.com

Most people don’t realise the amount of money they can make by
selling items on ebay.com, they just buy from other home based
business owners.

You can start within a second your own home based business on
ebay. If you have some old things you don’t need again, you
already have a based based business. Just register an account on
ebay.com , learn how people are selling their items out there
and you can make a real profits within a week of work.

As you can realise, your can start your home based business
without any investment online. All you need to do is choose
your niche market, choose your home based business model and
then work it in order to make money. Give a test to one of
this home based business models and you’ll be amazed by the
result. Now you have no excuse not to start your own home based
business, your success rests on your shoulders.

To many managers, the term “business planning” is a buzzword to describe what 30 years ago was conceived as the financial budget, and therefore the restricted realm of the accountant. To others it may represent a document required to obtain an overdraft or a loan from their bankers. A business plan may prove to be the most important document that may be compiled in any business. This paper aims to eliminate such taboos and simplify what the strategic business planning process is all about, and how its benefits could be maximised by the management of a business.

THE TERM “STRATEGIC BUSINESS PLANNING”

When we speak about a strategic business plan, the message to be conveyed is about the strategies and tactics to be adopted by an organisation to reach its missions and goals. An integral part of the plan is financial in nature, but the strategic business plan is no plan at all if it does not address marketing, human resources, ICT and all other resources needed to integrate and fuse the organisational efforts to achieve targets, in terms of maximisation of profits. Thus, an effective business plan should serve FOUR underlying purposes:

oIt is a tool for management to convey both within and outside the organisation the goals for the business plan period;

oIt provides the strategic framework for holistically managing the business;

oIt allows the identification of objectives and how the attainment of these objectives could be achieved and, most importantly, closely monitored

oBy demonstrating that proper controls and achievement of objectives are happening, it provides an effective means of attracting new capital to finance the business objectives.

WHAT IS REQUIRED?
Many have compared the marketing of a strategic business plan to a candidate’s CV, when applying for a job. What must be ensured is that the plan is not just figures and numbers, but also shows a good understanding of all those essential determinants in reaching the stated targets. Thus, we should first and foremost ask ourselves questions such as:

Who are we?

What do we do?

Who are our customers and what are their expectations?

What and where will our business be in one, two, three, five years?

What are we doing NOW to get where we want to be?

How should we get there?

Do we have the resources in terms of machines, people, finances, technology and so on?

Do we need to obtain external financing and what type/extent is convenient to us?

We could keep going on asking questions as much as we would like our plan to be detailed. Probably the answers to some would need more effort in terms of time and resources than others. The most important factors which determine this preliminary stage of planning is to ensure that we are asking ourselves the right questions, that they are leading our business in the direction we want it to go. On the other hand, a manager must be aware of asking too many questions that lead nowhere. The objective of this process is to enable the manager to grasp what the target is and then plan on how to achieve that target.

EFFECTIVENESS AND FLEXIBILITY

What are the nuts and bolts of an effective and sound strategic business plan that truly delivers the business targets? The mission, objectives and overall strategy must be determined. Particular attention must be focused on the implementation and evaluation stages that follow the setting of objectives and strategies. It is here that a business will succeed or fail. Experience has shown that at times, a business plan needs to be radically changed after one year, to conform with the ever-changing and volatile business environment. Do not be surprised! This is a healthy experience. As every manager knows, rigidly sticking to a particular plan, where the business encloses itself in a cocoon, can bring about those looming black clouds of ensuing business failure. Exhibit A presents the Critical Success Factors (CSFs) of good strategic business planning, whilst Exhibit B illustrates the benefits accruing from a properly organised plan that distinguishes one business from another. These benefits ensure that the organisation is homogeneously geared and glued towards the ultimate objective of maximising profits.

THE ESSENTIALS

We must remember that even the best of business plans, which takes many hours to compile, will only take a few minutes of the reader’s time. Perhaps, a cursory glance at the executive summary and the conclusion will be the main determinants for the success or otherwise of the plan. It is true that great business ideas backed by superior management techniques will probably succeed without any written presentation. But, that minute possibility of failure necessitates extra effort for that slight edge over the chances of success. In plain words, this means that a strategic business plan MUST itself be planned! Exhibit C provides a practical guide, showing the essential requirements for the success of a strategic business plan. Managers must put themselves in the shoes of those who will read the strategic business plan and who will then subsequently take the decision, be it the board of directors, the bank manager or a creditor. Thus, what the reader wants or does not want to know, determines the structure and flow of the plan.

THE PLANNING TEAM

Before embarking on writing the plan, the business must ensure that it is written by someone or a team to whom it really matters, because of the enthusiasm and commitment that they put into it. Besides, such a team would in all probability be in possession of a substantial amount of information to determine the goals, targets and resources needed by the organisation. Of paramount importance is perhaps the message to be conveyed to the compilers of the plan. The team has to clearly and effectively show that it satisfies the following criteria:

oIt has the necessary experience in compiling good plans. The various disciplines in the organisation have to come together, thus ensuring a holistic approach.
. It can realise successfully the targets set, meaning that the compilers of the plan should also possibly be or include those same managers who will actually implement and monitor the plan’s performance;

oIt has already done what is being proposed – this means there is enough competence and experience to link to past plans, in terms of objectives and achievements; . It fully understands all the risks and pitfalls. Contingency planning is an integral part of a strategic business plan, where realistic risks are carefully planned for;

o It can relate the business plan to current and anticipated resource levels. Generally, each organisation has an element, large or small, of un utilised resources. The strategic business plan is the tool that identifies and effectively uses such dormant resources.

BUSINESS PLANNING TOOLS

Once the team has been identified and given the necessary powers and responsibilities, what remains is the identification and provision of the necessary tools to produce the strategic business plan. Each and every organisation should choose its tools for good planning, considering such issues as structures, staff competencies, organisational cultures, current resources, etc. However, the following list of commonly-used tools is neither exhaustive nor binding, but is an extremely efficient checklist, which is a valuable form of reference:

oClear and concise planning forms and guidelines

oA set of planning definitions

.Internal and external surveys

.Financial modelling packages ‘Organisation-wide availability and sharing of information

.Identification of standards to assess whether the targets are achieved

.Training programmes for planning staff

.Task force/Focus groups

Of course, the adoption of such tools depends on the size of the business. For example, in the case of Task Force/Focus Group, these approaches are used where the organisation tends to be rather large in size. This also applies for Internal/External Surveys, where the cost and time of collecting such information has to be viewed in terms of the accruing benefits to the quality of the plan itself.

AN EFFECTIVE PLAN

What remains is therefore the organisation of all the data collected and the composition of the strategic business plan itself. The executive summary itself is built up after the rigorous exercise of establishing the comments, figures and messages contained in the plan. The summary must be seen as conveying to its readers, in a short but effective message, where the business is to-day, and what future scenarios the plan is proposing.

It is the norm for Executive Summaries to be limited to one page of prose, but the most important element, be it one or two pages long, or even three, is that the summary, when read must immediately provide the reader with what to expect in the plan itself and what the plan’s conclusions are, the targets to be achieved, how they will be attained and what monitoring systems will assure their delivery. Exhibit D is a good example of an effective executive summary.

Another important issue for a successful strategic business plan is the way that data is applied and the manner in which it is communicated through the plan. Top management is interested in the specific targets to be achieved and will not tolerate statements with inadequate information, or which give rise to ambiguities or worse still are very generic in approach. Exhibit E compares and contrasts two different statements, illustrating what quality of data conveys in an effective manner, the message of the plan. Notice how the first statement is full of generic fluff, which does not mean a thing, and worse still, leaves the reader completely more perplexed than when he/she started.

But perhaps, the focus of the business plan user should be directed on the financial analysis and projections that support the scenarios being proposed by the plan. The financial analysis provides the effects of the strategic business plan into numbers that could be crunched. What should form part of this integral and important financial section of the plan?

-Only a Summary

-Historical performance and how it relates to the proposed scenarios

-Comments on the accuracy of previous plans, profit/loss trends, fixed costs patterns, cash flows

-An exercise in sensitivity analysis of possible scenarios

-Justification of assumptions

-Risk guarantees to investors

Other data demonstrating that the proposed plan is financially sound, cost effective and a profit motivator.

Besides the above elements, we must not over assess the other parts of the plan, especially the marketing, management and operational aspects. The team must ensure that they are able to produce a cohesive, well structured plan that will definitely deliver the message. The need for good business planning is therefore evidenced by the need for the organisation to maintain a truly effective thrust in the treacherous business environment it operates in. Business planning is a highly specialised and skilled form of determining the strategic direction, which demands and deserves some good quality effort. Without a business plan, the organisation, like an armoured tank without any ammunition, will flounder in the face of any weak opposition. Adherence to strategic business planning disciplines is not a bad indicator of those businesses likely to survive and those destined for the scrap heap.

EXHIBIT A

The Critical Success Factors

SENIOR SUPPORT

The top people should “walk the talk”. The board of directors and the senior managers should present the concept of business planning to all levels, in all programmes, to all functional support units, to financial officers, personnel officers and operational managers

ACCOUNTABILITY

Ultimate accountability for the strategic business plan being developed, carried out and evaluated lies with top management. The maxim is to ensure that each person is responsible for achieving each goal stated by the business

OWNERSHIP

In simple language this means that the managers should be responsible and accountable for the content, time frames and deliverables for the specific area they supervise

MECHANISMS

It is important that the strategic planning process is seen as a “hierarchical” process that links the higher to the lower levels of the business structure. It begins with the long-term business objectives and moves down into individual performance objectives and targets

FEEDBACK

Strategic business planning must be INTERACTIVE – it can only improve through trial, evaluation and feedback. Important milestones are periodic meetings at top management levels to assess and, if necessary correct the plan

REWARD/RECOGNITION PROGRAMME

Employees need to be motivated and encouraged to ensure an efficient cost/benefit approach. Recipients of rewards/recognition will signify to their colleagues that this kind of behaviour is what the organisation wants

EXHIBIT B

The Benefits Of Business Planning

Provides guidance and direction to the business itself

Promotes cross fertilisation opportunities, for example sharing of resources/knowledge and cost ascertainment initiatives

Enhances managerial alertness to change and opportunities

Creates, fosters and energises a results-oriented climate

Provides managers with a rationale for evaluating competing interests regarding budget requests, staffing allocations, critical proposals

Steers resources where they are most needed

Helps to unify the myriad of decisions made throughout the business, by providing horizontal and vertical links

Co-ordinates disparate and diverse activities

Encourages pro-active thinking and responsive programme delivery

Provides a business culture throughout the organisation which facilitates the flow of information up and down its hierarchy

EXHIBIT C

The 8 Rules of Business Planning

Open with a summary

Should be no longer than a page and ensure reader’s attention. It enumerates the key points; gives some facts for the overall case.

Focus on the audience and the final result

It must arouse the reader’s interest, leaving out details which may be relevant only to yourself.

Avoid ambiguity

Use plain language. Organise your message through references, clear figures and illustrations and make good use of graphs and tables.

Project your achievements

A business plan backed by good, solid management is what the reader looks for. Highlight important achievements of management.

Use clear narrative and figures

The reading must be interesting, logical and provide clear flow through to the end.

Do not forget the underlying evidence

The data (both external and internal) should be of high quality, relevant and easily communicated to the reader.

Provide for feedback

Involve the active participation of the reader through his/her comments, enquires and explanations.

Ensure senior support

Most business plans originate at the bottom echelons of the management structure. The champion of the plan must be supported by a mentor on the board of directors.

EXHIBIT D

An Effective Executive Summary

o Booboo Ltd is a family-owned confectionery business established 50 years ago by the father of the present owner. Turnover has grown rapidly over the past five years to $750,000 and pre-tax profits to $150,000. A new outlet has been opened this year, to make up for the increased demand. This has also reduced operating costs by 10%.

o Present market analysis indicates that there is demand to increase the number of outlets by another two. These will be serviced and controlled by the Main Area Outlet. Management believes that they could win business from local competitors who cannot compete on neither price nor quality.

o The investment cost involved in setting up the two units is $300,000, whilst average running costs at to-day’s prices will amount to around $85,000 annually. The funds required will be financed as to 30% from the additional funds invested by the owner and the rest by means of an assets-secured 10-year bank loan.

o This investment together with a projected increase of 8% on present day turnover would boost up the pre-tax return from the present 19.6% to 25% of turnover.

EXIDBIT E

Good Quality Data

Not…This rapidly growing massive market will soon become absolutely vast and once we have conquered it in a few years time we will also start on the even enormous international market, where there is even more potential and no competition. And in any case, nobody can copy our unique product.

But…The local market is estimated to be worth around $4.5 million per annum and to be growing at about 12% per annum. If development follows the course for neighbouring states, the potential market size is around $7.6 million, which provides considerable room for growth. Trade sources suggest that current market players are finding difficulty meeting demand, with the current demand/supply ratio running at 1.15. This supports our sales forecasts.

We believe there are further opportunities for expansion in the international arena, where the market is approximately at a similar stage of development as it was two years ago. Our plans show a modest entry into other international markets within 18 months…

Our products have minor improvements compared with competitors, which are protected by both local and international registrations.