Do you keep putting off creating a business plan because all you can see is a big thick document which YOU have to write? How would you like to learn a way to create a basic business plan, which is easy and fun and which you can adapt for use by bank managers and solicitors as needed?

Grab a big sheet of paper and some coloured pens, or pencils if you have them and let's get started. Why not turn the stopwatch on to check that I'm telling the truth?

We're going to use a technique called mind mapping which was developed by Tony Buzan. In the centre of your page write the name of your business (or your own name) and roughly circle it. Now put 6 spokes about an inch long out from this circle and at the end of each spoke, put another circle. Give each of these circles one of the following labels:- Administration, Finances, Marketing, Location, Product, Staff. Let's work through each of these areas one at a time, adding a spoke onto the relevant circle for each heading you need to consider in your business plan.

Under administration, you'll need to consider things like your legal requirements, structure of the business, licences required, records to keep, book keeping, reception and bookings. Create a spoke for each of these coming from the circle marked Administration, then as you answer each of the questions, fill in the answers.

It should look like this:

In effect, you are brainstorming all the things that you should include under the headings you create as you build what looks like a tree.
So now let's look at Finances. You'll need to consider pricing, whether you will register for and charge GST, your expenses, your overheads, the expected income you have from funding, income from expected sales and how you will set up your accounting system.

When you consider Marketing, try to identify your ideal customer, where they are located, how you're going to promote your product and what your competitors are doing. It will be useful to plan how you can do something different to your competitors as bank managers have a habit of asking ‘Why would anyone buy from you rather than your competitor?'

You're most likely starting a business because you have a product or service to offer, so when you consider Product identify exactly you are offering. Then you need to identify whether you are manufacturing the product yourself or buying it from a supplier and you will look at issues such as the costs incurred and potential challenges including freight.

Location is often overlooked in a business plan, but you need to be quite clear about where you are going to locate your business and why. Do you need a special type of building, have you done a risk management plan, can you get permits to operate your business from this location?

You might be operating on your own now, but it's important to look at the roles involved in your business and the job descriptions for each. Then you can assess where you lack expertise and may need to employ staff with the skills for that role and to free up some of your time. It's a good idea to assess the costs of employing staff and how you will manage them.

In under 60 minutes you will have created a basic plan which you can add to (or subtract from) as you develop your business. It can also be translated into many of the business plan templates made available by banks and government organizations.

It should look something like this:

My personal business plan started as one piece of butchers' paper and is now surrounded by four extra pages! Have fun with it and let your mind do the work for you.

References: Mind Maps by Tony Buzan. http://www.buzan.com.au/

Penny Paxman coaches small business operators to overcome the challenges experienced when just starting out and when they are ready to move their businesses forward to the next level. She can be contacted on 0417570801 or at This e-mail address is being protected from spambots. You need JavaScript enabled to view it