How to put together a business plan

Business Planning 101

To begin, if you are a Christian, I suggest you pray and ask for guidance.  If you are from a background where God's only communication is the bible then this part may prove difficult.  The Bible in my opinion is the source of our discernment and litmus test for heavens communication, but it does not replace first person relationship with its author.  The role of the Holy Spirit is critical to your understanding the nature of God from the inside out.  A lot of what is done "in the name of Christ" sometimes has little if in come cases anything to do with God.  We like to feel religious and hope that others see us that way.  It makes us feel good about ourselves but it can be destructive to having a relationship with Christ.  All to say you need to make sure this is God's vision not your own fantasy.  There is a very big difference. 

A business plan is a methodology of organizing your thoughts into a format that will allow you to turn your ideas into a realistic picture.  It is a step by step process that can utilize the services of various professionals including, graphic designers, accountants, architects, and contractors.  It is not something that happens over night.  A well thought out business plan is a thing of beauty that often takes months of analysis.

Local resources

There are numerous blogs, internet sources, and software packages available.  you will need a working knowledge of Word and Excel to put together your narratives and spread sheets.  Make sure you are comfortable with what ever format you choose to use.

If you are fortunate to live near a local university with a business department, they often hold seminars or business fairs to help upstart entrepreneurs flesh out their ideas.  If they are available then make sure you compensate them well for helping you.  If you have God beside you, he will want to bless those who help put together His program.  Don't use people.  God pays his own way.

With Whom and what is your target

Its important to have a target population or product focus.  The more focused you are the better chances you have of hitting your target.  Don't try and save the world.  That is Gods job not yours.  Stay within the sphere of influence he has ordained you for.  Loose your own ambitions and fantasies by preferring His. 

If you are wanting to help people then reading "Toxic Charity" is your first homework. Read the article on this blog entitled as such.   Much of what we do to help people simply creates dependency.  But to empower people to take care of themselves breaks a heavy yoke.  Many of our entitlement programs are legalized slavery.  Once you are in the system, its all but impossible to escape. 

Research your target focus

Thoroughly focus on a "hole,"  "need," or "nitch market" that is real.  Develop understanding and gather information that supports the need you see. Don't get caught up in hype and misinformation. Use reputable sources for your statists and analysis.  Have real numbers in place.   Find multiple sources that confirm what you are feeling.  Those who will be reviewing your business plan will see through smoke and mirrors. 

Local Inventory of Providers

Are there others already doing what it is you want to do?  If so what is it that sets you apart.  How can you interface and support what is already happening in your area?  Can you utilize their services to cut cost and not duplicate services. 

Your personal resume'

How qualified are you in running your chosen business? Honestly. Are you capable of managing what it is you hope to do.  Business professionals will ask you some hard questions.  Will qualified individuals help to run your program?  More on that a little later.

Program Highlights

What specific programs do you want to offer those who you want to help?  List them out specifically and be realistic.  If for example you want to provide health care, what kind of health care?  What specific services will you provide.  Again how experienced are you in providing these services?  Who will you have to tap to provide your focus

Corporate structures

This is a very important consideration.  You may well need the help of legal professionals to understand the various options available to you.  There are literally dozens of structures from not for profit to limited liability corporations.  You need to understand the pro's and con's of each type of structure to find the best match for what it is you want to do. 

Key personnel

Put together a list of people you will need as part of the staff.  What is their qualification package and background?  You will need everyone from administrative staff to maintenance.  Depending on your program highlights you will need craftsmen/women and professionals to carry out your plan.

Obstacles to your success

Who and what may oppose your forward progress.  What competition exists for your market share.  If you think you will be unopposed in your program, then I suggest you need to be prepared for some surprises along the way.  The government itself may oppose you.  Generally, anyone or anything that will feel threatened by a new wine skin will oppose it, slander it, and try and defeat it.  Be realistic in your considerations at this point. For every obstacle have a plan around it. 

Marketing Plan

Without doubt you will need to reach your targeted population.  This may in fact be a full time job for someone.  Keeping up with discriminating information about your facility will be tantamount in your success.  This may include social media, printed media and a host of other resources.

Design Criteria

I would simply refer you to the five part article on this blog entitled "Community Planning from the Kingdom of God's Perspective."  If you have other priorities then of course put them to paper.  Make sure you start out knowing where your going if you want to achieve success. 

Program Space Summary

To a lay person, this may be one of your hardest tasks.  Now that you know who will be using your program and how many, then you can begin to forecast space requirements.  For example you may have a teaching component.  That being the case you ask yourself how many students will be in the classroom along with teaching methodologies.  Measure spaces you know live in for how big or little they may be.  Measure your Sunday School rooms or local classrooms to develop some idea about space.  Then you need support spaces like teacher work areas, toilets and storage.  In support of the classroom you need circulation, administrative, and mechanical support. 

Go on line to take a look at what ever facility you may be thinking about.  But......think outside of the box.  You have a chance to do something different.  Don't build brick boxes or metal buildings unless you have a very limited vision.  Remember each building has to be accounted for.  Once you have the total square footage add a 20% contingency factor for unknowns.  This is important because your square footage totals leads you into construction cost forecasting.

Project Cost forecasting

Using your program space summary you can multiply this square footage by the cost of construction in your area.  Don't get caught short.  Add another 20% to your figures to make sure you are covered.  Make sure you allow for innovative design concepts if you are planning any.  This can add significantly to your projects cost. Below is a short list of things to include in your project budget.

Site acquisition
Site development
Construction cost
Fees and Services (usually 5% to 7% of construction cost)
Project Contingency (usually 25%)
Owner furnished equipment
        Furniture
        Food service equipment
        Laundry equipment
        Maintenance supplies
        Program services equipment
        Farm equipment
        Livestock procurement
        Fencing
        Vehicles
        Etc. etc.
Miscellaneous start up costs (5% of OFE budget)

Add all of these together and you will have your preliminary project budget. 

Annual Operating Cost

This is a very important and sobering part of your plan. You can build a great building but not have the resources to staff it, maintain it, or operate it.  Here are some important considerations:

Staff needed to run the facility along with their income and benefits package.
Health and property insurances
Taxes
Guest salaries stipend if you plan on outside guest participating
Maintenance cost (Roofs will need to be replaced every 20 years, light bulbs replaced, filters changed on air handling equipment, in addition to just keeping the place clean.  There will be full time staff assigned to this task)
Utilities (electrical, water, and sewer)
Operational costs (pencils, paper, copiers, etc.)
Cost of money (bonds, loans, interest payments etc.)

Total annual project overhead.  Now. How do you intend to pay for all this?  Does your market share have the funds to pay this?  What is your product cost to break even?  How do you fund the first five years overhead until your client base rises?  What happens during a lean year?  What are your expansion plans?  How will that be funded?  What financial risk are you taking by building such facilities?  If your program is asking for an endowment request, then only plan on around 3% a year return.  Never ever risk your endowment.  If you loose it then what? 

Project Procurement

You can have all of the grandest plans and fail miserable during the procurement process.  I refer you to my article on this blog entitled "Wise Council-Before its too late" to expound on this subject.  You can not have cost overruns, delays, and problems during construction.  There are ways of avoiding these pot holes but you have to set up the system on the front end not after the cart is off in the ditch. 

Summary

Once your information is compiled, then add some nice graphics, pictures and illustrations to make your presentation more appealing.  It is after all not just numbers and text it is a living vibrant entity that you hope to invest yourself.  Hopefully others will too.

You are about to perhaps take the biggest step in your spiritual and economic lives.  Take your time and pull in whom ever you need to do this right.  Those with money will see a well thought out plan and the pitfall of a poor one.  Most people are not going to take risks with you.  Additionally, they probably are not going to throw some money at the wall in the hopes that something will stick.  Be prepared with a well thought out plan.