Business Planning - Business Action Plan: Complete Projects Effectively and Efficiently

       The following is a business planning tool which I have designed to help complete projects for a business efficiently and effectively.  Use this tool with a new business idea and its projects to help advance market positioning! I call it a Business Action Plan

Business Action Plan

1      Purpose – Ex Ante summary

Summarize the purpose of a project in a few sentences. What is the business trying to achieve in the short to medium-term? What is the focus of this project.

2      Objectives – micro goals

In order to achieve the purpose of the project some goals must be established.  Three to Five goals should be set that fulfill the ultimate purpose.  Sub-projects can me be to more easily measure the requirements and effectiveness of each project, instead of one convoluted project which may confuse elements.  The objectives which are created are the potential outcome of sub-projects.

3      Purposed Tasks – projects required to complete

To complete an objective as well as sub-projects, tasks must be completed.  Depending on the type of project and business, these tasks can differ greatly.  Imagine what is to be completed; how will it be initiated? How will it be mobilized? How will it be carried out? What is the conclusion of this project?  These are the sub-projects which reach the short to medium-term business objective.  List all relevant, most importantly potentially effective, tasks that meet objective requirements.

4      Requirements – requirements for projects

Each task that is set will require resources, whether it is time or raw materials, these will be needed to carry out each task.  List the tasks required for the project, followed by what resource, service, and time requirements will be needed for completion.  Before a project is carried out the resource and budget requirement can be estimated using market prices and wages.

5      Budget – budget requirements and outcome

Using information from the requirements of each sub-project, a budget can be built to estimate the potential cost of the project.  Create a budget using estimated costs and revenues of the projects.  Depending on the type of project, the forecast for the project should display a positive return; there are ways that externalities of the project can be included in forecasting.  If it is a cost-based project, the results of a campaign, or other intangible result, can be measured using different methods.

6      Conclusion - notes

Summarize the purpose and objectives of the action plan; a statement about how this project will affect the standing of the business, or how it will be advanced can be made.  Any other pertinent notes reviewing the action plan should be placed here.

Michael Porter's Five Forces Model - Competition and Market Entry

Source

Porter's Five Forces Model was developed by Michael Porter between 1960-70; it is a tool to analyze the competitiveness of a business.  It is a useful tool to analyze competitors as well as the business itself, also useful to understand potential competitors when entering a new marketplace or industry.
Applying these factors to an existing business may help it fix some flaws, and develop a clearer plan.
Rivalry Among Existing Firms - These factors are essentially the industry standard; understanding the industry standard will help a new business develop proper practices for dealing with customers and suppliers and interact efficiently in the marketplace with little friction.

Threat of New Entrants - What factors determine whether or not new firms would like to enter a marketplace?  Demand in the marketplace can drive up prices making industries in short supply attractive for new investment; this is one factor.  Understanding many of these conditions and their state in the market may help to reveal attractive new businesses.

Supplier Power - Suppliers are an important aspect to a business which require a lot of materials or services to operate.  These determining factors may affect a business more or less depending on the type of business it is.

Buyer Power - Similar to supplier power, customers of a product or service may have significant influence over a business.  Customers may be other firms which have the potential to purchase a supplier if is considered economic.

Threat of Substitutes - Substitute products and services can become much more attractive to customers depending on the state of the economy; given local price levels and wage rates, or other factors.

Using an existing or new business idea, develop an analysis using Porter's Five Forces Model;  it may help to reveal new ideas, or a new understanding of a business.