A business plan in its simplest sense is a document outlining your new product idea’s goals and objectives and an action plan for their achievement.
It is a crucial element of the NPD process whether one is required or not for to generate funding.
A well-structured business plan can be used to monitor progression and hold yourself accountable. Working alongside IMS in the creation of your business plan, will highlight any gaps or holes in your business strategy and will help you question any flawed business assumptions before moving into execution stage.
Why You Need a Business Plan
To roadmap the future
A business plan essentially enables more effective business management in the medium to long term. The practice of committing a business idea to paper forces a level of discipline which requires various courses of action to be weighed up against one another until the most appropriate option is chosen.
To drive growth and ascertain funding
Most businesses require funding at some stage in their commercialisation and as such require an updated business plan when approaching potential investors. A well-written business plan inspires confidence in investors that the business owners have thoroughly investigated the venture’s future viability and ability to generate sufficient cash flow to enable it to operate effectively.
To manage cash flow
Effective cash flow management is essential at all times but none more so than when a business is pursuing investments which require significant cash flows out before any revenue is earned.An effective business plan highlights future funding requirements and a corresponding plans for optimal cash flow management over time.
To support an exit strategy
Most business owners will at some stage decide to exit the business. Business planning by its very nature involves the consideration and agreement of potential exit strategies. Knowledge of these strategies enables potential investors to make decisions now based on the business’s long term prospects.
How We Work With You to Develop an Effective Business Plan
The IMS team have vast business planning experiences through our work with clients of all sizes and stages of commercialisation. Whether you are using the business plan to secure funding via a private investor or state agency or as an internal documents to simply guide business growth, we can create an effective plan to suit your individual requirements through following our disciplined and rigorous four step process:
Step 1: Education
- Determine why business plan is required
- Educate IMS on business value proposition, history, growth objectives
- Gain an understanding of current and past financial business performance
- Handover of existing feasibility or business plan documents
Step 2: Proposal
IMS will issues a proposal document detailing the scope and timeline of the Business Plan project highlighting gaps in existing knowledge, requirements for further research and project timeline.
Step 3: Research
Upon sign off of the proposal, IMS will progress the business plan to the research stage where any gaps in knowledge will be filled where possible through secondary research and if necessary through completion of primary research.
Step 4: Draft, Review and Finalise
Once research is complete, IMS will provide a draft business plan for initial review by the client company. Through a series of revisions, IMS will liaise with an appointed representative within the client company to bring the document to completion.
Step 5: Prepare for Investor Presentations
The finalised business plan is a key decision making document for potential investors however it often needs to be accompanied by a polished and persuasive pitch by the company founders. IMS will prepare and coach you to deliver an impressive investor focused presentation.
Already have a business plan?
If you have an existing business plan which requires independent feedback before being released to potential investors, state bodies or internal employees, IMS can review your existing plan and offer detailed and constructive advice as to how the plan can be improved. Alternatively, IMS can develop the marketing element of your business plan by creating a suitable marketing strategy targeted at achieving the plan’s goals and objectives.
To find out about the work that we do for our New Product Development clients, visit our comprehensive case studies section to read more.
Are you interested in our New Product Development Services?
Contact us if you would like to discuss your requirements with a member of our specialist team.