Richard.H started this topic @ 19:58 on 13/10/2004
Hi all.
I've 'been in business' for a few years, operating a Limited company with another partner (both directors, owners and managers). So far, our operations have been on a scale that has not required external financing and we 'answer to ourselves'.
We're working towards a new project, one that will likely need financial assistance in the forms of both an initial capital investment, and as a solution to a forseen cashflow problem. This project is technology based (we are both programmers/technology people).
I can see a stage where our new project will require additional staff/management, but it also is such that it can be operated within our existing organisational structure (the two of us); perhaps until the idea grows beyond our existing control.
In the business plan that i'm currently writing, I want to explain that we forsee the situation where we need to bring in new people to deal with specific areas (in our case, we probably will need marketing/sales people first). I also want to say that we're capable of operating the business as we are now.
To me, this is a contradiction: "we can operate things as we are now, but ideally we'd be better off with someone to handle marketing/sales".
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My question, and request for advice, is how does one justify a small management team when writing a business plan?
It would be very nice if we could all operate our businesses with a full suite of deparments for business activities, but in the majority of cases businesses start out small and grow into those shoes.
RE: Justifying yourself(ves) in a new venture (business planning)
Anglo-Sino | 13/10/2004 08:51 PM
You have been in business a few years so you will no doubt have figures to prove your growth over these years. This in turn can be used to backup the fact in order to develop any further you will require staff to act in "specialist" areas allowing yourself to carry on focusing on "the big picture".
Conversely if you have not grown (according to the books) then ask yourself why you think you need the staff, where and why will it benefit you?
"we can operate things as we are now, but ideally we'd be better off with someone to handle marketing/sales".
You can suggest you have flatlined if this is the case and in order to realise true potential this is the next step. The answer needs to come from within as suggested. Why do you think you need......
Hope this helps.
Paul
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Your Gateway to Asia - Global procurement services.
www.anglosino.co.uk
RE: RE: Justifying yourself(ves) in a new venture (business planning)
Richard.H | 14/10/2004 12:08 AM
We see this project as a new start-up; our accounts and history are helpful but essentially unrelated.
I know we can operate with our existing setup (the two of us), but i find it a little odd saying we'll be doing our accounts, technology, sales, marketing, support, administration, etc etc between the both of us.
I know where i'd like to go with my business, and i know the areas in which I predict we'll need to expand first and at what rate. What i'm struggling somewhat to do, is justify how we'll run things until we've fiscally able to expand our management/staff.
When someone has an idea for a small business, and they go along and start writing up a business plan, how do they justify themselves as being a "jack-of-all-trades"?
RE: RE: Justifying yourself(ves) in a new venture (business planning)
acu-it | 14/10/2004 12:37 AM
Richard,
You dont need to justify yourself as a "jack of all trades" on your business plan. Most important facts on your business plan (well in my view anyway) is being realistic with your figures (after all all expected profits etc are just a forcast noone can be 100% sure of exact figures) and what you plan to achieve you dont need to go into which partner will do xyz within the business.
As for the taking on staff all you have to do is make sure the expected figures are achievable and you have a well thought out "threats analysis" to back up your the figures you have written and also to explain what you plan to do to combat things if those figures dont happen straight away as expected.
Remember your business plan should not be written just for investers but should be a guide for you and your partner on the direction you both wish to take the company.
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Acu I.T. Solutions
RE: RE: Justifying yourself(ves) in a new venture (business planning)
Clementine | 14/10/2004 07:44 AM
Maybe you could attached CV's to your business plan?
I did and it seemed to do the trick.
If you present your plan you will be telling them what you are doing, how you are going to do it and why it is going to be a success. If you attach CV's of WHO is going to make this happen they should be able to see all the data they might require in order to make a decision.
You need to prove your small team can manage and by telling them about who is in this team (even if it is just the two of you) then that is your proof of capability.
(Just make sure your CV's are pretty hot).
One other thing - as opposed to taking the view that "we could do this ourselves, but need more staff to ideally make it happen" (type of thing) - why don't you pose the situation as "we are more than capable of running this business and will maintain position/grow by X amount over the next 6 months, however if we invested in X amount of extra staff doing X jobs then the growth will be significantly increased to X over the next 6 months"?
This way you are giving two positives. Remember you should always tell people what you can do and never tell them what you cannot.
Clem.
RE: RE: Justifying yourself(ves) in a new venture (business planning)
webvideo4u | 14/10/2004 08:53 AM
If I were you I'd build an organisational chart, complete with all the positions you think the company needs.
To begin with the two of you will fill all of these roles but it will help each partner to define their own roles within the company.
It should be your goal to fill these roles with staff dedicated to performing those tasks. If you don't do this then instead of running a business, you'll just have a job that doesn't pay a set wage and you're tied to.
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