July/August 2020

Part two BY Andy Savva T here is no unique formula for preparing a business plan. There is no perfect size or level of detail. There is no single magic list of contents. There is not even a single, ideal way of ordering the content. However, by understanding the intended audience for the plan, your future customers, possibly your bank, the expected uses is possible for any competent person to put together a very satisfactory, realistic and achievable business plan. A dictionary definition of a business plan is: “A business plan sets out the method for running a specific activity over a specific future period.” The specific activity will be your garage business or whatever sector you are in or going to be in. The future period could be 12 months, 18 months, three years or longer. As I have previously stated, a plan usually reviews the current status of a business and sets out an overall business strategy for the future with a more detailed operational and financial plan for one year ahead. The strategy and plan will cover all areas business. The key focus should be on management, service, finance, marketing and sales. Objective The central objective for driving business is to maximise profits – isn’t that what running a business is all about? You would have heard me ask for a good few years now, “is PROFIT a dirty word?” However, maximising profit in the short term will in my view probably kill the business in the longer term, unless the profits are continually re-invested wisely in such areas like, staff training, equipment, tooling, premises and marketing activities. Planning is about a journey. The plan is your starting point. It charts a route to your destination. It identifies the major hazards that you should watch along the way. It gives you strategies for coping with storms and obstacles. It gives you landmarks to confirm your progress. It helps you expect the unexpected. With a good business plan, you know where you started, where you are going, and how to get there. Question Start developing your plan by answering an obvious question – what and why are you planning? When you define this concisely you are well on your way to developing a valid plan. You then need to work through the planning process. Here is the framework that I used back in 2009 before I opened Brunswick Garage 14 AFTERMARKET JULY/AUGUST 2020 BUSINESS www.aftermarketonline.net BUSINESS PLANNING In part two of his look at business planning , Andy looks at what the objectives should be for your garage in the short, medium and long-term