Expert Responses

Such a plan is important for a family business because it is intended to focus on the business and not incorporate any extraneous (e.g. family) issues

A good business plan will:

• Set out the nature of the business and its areas of focus
   
• Outline your agreed business objectives and goals over an agreed time period (typically 1 to 3 years)revenues, costs, profits, employees, markets, etc.
   
• Identify how these objectives will be realized within a specified time period

• Tie into the long term vision of the family business
   
• Identify the strategies you need to employ to reach your goals, with clear responsibilities and accountabilities defined for those who will be responsible for achieving those goals and the timelines required

Many facets of the business are included in a business plan—including the key operational issues; the marketing plans; the human resource dimensions; the management team—as well as the financial forecasts

A business plan is a guide for you to follow but it is not a static tool, it will change as circumstances change and you should ensure it is kept up to date to reflect economic realities

Although business plans have often been developed to secure external funding this is not the only—or primary reason—for developing a properly considered plan