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BUSINESS PLAN OUTLINE ONLINE

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12) SWOT analysis - see The Marketing Plan/Section andUnderstanding the environment'. Step One: The Evaluation and Review of the S.W.O.T Analysis

    The strategic

    business plan

A guide to preparation for not-for-profit

    sport and recreation organisations

Prepared by: Industry Consultant

    NSW Department of Sport and

    Recreation

    Industry Development Unit

    Locked Bag 1422

    Concord West NSW 2138

    Tel: 02 9006 3700

    October 2001

    THE STRATEGIC BUSINESS PLAN A GUIDE TO PREPARATION NSW DEPARTMENT OF SPORT AND RECREATION 1

Contents

1) Introduction and Aim

2) The Elements of a Strategic Business Plan

3) Outline of Contents

4) The Body of the Strategic Business Plan

    i. The Management Plan/Section

    ii. The Marketing Plan/Section

    iii. The Operational Plan/Section

    iv. The Financial Plan/Section

    5) The Strategic Business Plan A Self Paced Activity For Your Board Or Committee

    6) Understanding the Environment S.W.O.T. Analysis

7) Evaluation

8) Glossary of Terms

9) Sample Draft Strategic Business Plan

    THE STRATEGIC BUSINESS PLAN A GUIDE TO PREPARATION NSW DEPARTMENT OF SPORT & RECREATION 2

1) INTRODUCTION AND AIM

The following guide has been produced to assist your sporting or recreation organisation in

    the preparation of its Strategic Business Plan.

It has been formulated to provide you with a step by step process to be used as an aid when

    developing your plan in conjunction with the fact sheets and funding guidelines.

It also includes a template of a Strategic Business Plan which can be customised to suit the

    needs of your individual organisation.

The aim being that, after having worked through this guide, your volunteer board, or

    committee, with your paid or volunteer managers should be able to:

    ? Understand the role of the Strategic Business Plan

    ? List several reasons for developing a Strategic Business Plan

    ? Identify sources where you can get help in developing your Strategic Business Plan

    ? Identify the type of information to include in the Strategic Business Plan

    ? Prepare an outline for a Strategic Business Plan.

    THE STRATEGIC BUSINESS PLAN A GUIDE TO PREPARATION NSW DEPARTMENT OF SPORT & RECREATION 3

2) THE ELEMENTS OF A STRATEGIC BUSINESS PLAN

There are seven (7) key elements of a good Strategic Business Plan for a not-for-profit

    sporting and recreation organisation:

    1. Vision it is essential for a your organisation have a vision. Without vision, a

     your organisation may have nothing to strive towards.

    2. Commitment every organisation needs to be committed to its vision, otherwise it is

     unlikely to succeed. Commitment is also required from both the

     organisation and its employees.

    3. Timelines every organisation needs to have timelines, which indicate when

     particular milestones will be achieved.

    4. Objectives an aim or set of goals to be achieved.

    5. Reporting organisational reports should focus on performance and trends and

     help in determining change.

    6. Contingencies every set-back cannot be anticipated however, it is possible

     to account for the risks that may be faced and work out a contingency

     plan. It is also important to learn from mistakes, and the Strategic

     Business Plan needs to be changed to reflect the new learning.

    7. Change it is important that any major changes affecting the organisation are

     reflected within the Strategic Business Plan. A Strategic Business Plan

     is an evolving document, and it will change as a business develops.

    THE STRATEGIC BUSINESS PLAN A GUIDE TO PREPARATION NSW DEPARTMENT OF SPORT & RECREATION 4

3) OUTLINE OF CONTENTS

    The contents of a Strategic Business Plan for sporting and recreation organisations will vary according to:

? The size of the organisation;

    ? The structure of the organisation;

    ? The impact of the business environment on which the organisation operates; ? The number of personnel involved in the conduct of the business of the organisation; ? The influence of key personnel;

    ? The influence of internal and external forces including: member and government; ? The commitment of the organisation to an on-going planning process.

    There are typically up to fourteen (14) sections that you could chose to include in your Strategic Business Plan, much will depend upon the size and nature of your sporting or recreation organisation.

    If your organisation is very small you may wish to exclude a particular section (s). It is entirely up to you. However, those sections highlighted in bold should be considered for inclusion.

The fourteen (14) sections include:

1. A cover sheet

    2. A signature page

    3. An executive summary

    4. A table of contents

    5. A list of major assumptions

    6. A list of critical success factors and issues facing your organisation 7. Organisation history

    8. The vision of the organisation

    9. A list of goals and objectives over the long term

    10. Tables identifying key performance areas, goals, objectives, strategies, action plans 11. Management structure

    12. SWOT analysis

    13. Financial data

    14. Appendices

Detail to include in each of the above sections is as follows:

1) A cover sheet should include:

    a) Name of the organisation and logo (of applicable)

    b) Organisations address

    c) Contact information telephone, facsimile and e-mail

    d) Principal i.e. the directors

    e) Date

2) A signature page is where directors or key participants to the plan sign their

    commitment to the ownership of your plan.

    THE STRATEGIC BUSINESS PLAN A GUIDE TO PREPARATION NSW DEPARTMENT OF SPORT & RECREATION 5

3) Executive summary

    Provides an overview of the sport and recreation organisations business, briefly mentions

    major events and identifies the strategic direction of the organisation over the time frame

    of the plan.

    4) Table of contents needs to be accurate to reflect the details of the document to the

    reader.

    5) Major assumptions all strategic business plans should identify assumptions made,

    which in turn are used to determine goals, objectives, strategies and action(s) plans.

    Assumptions that are central to the success of the plan need to be clearly stated and what

    contingencies identify that will be implemented if an assumption (s) is verified.

6) A list of critical success factors and issues facing your organisation these are helpful

    both to the organisation and to the reader in identifying those issues that may be peculiar

    to your organisation but which are critical to the success of the plan.

    7) Organisation history details a history of milestones, past successes in meeting

    objectives of the organisation.

8) The vision of the organisation refers to the philosophies and the mission statement. The

    philosophies are the beliefs that shape the culture of the organisation and its people. The

    aspects of the philosophy may include:

    a) Members

    b) Planning

    c) Commitment

    d) Integrity and ethics

    e) Volunteers

    f) Management

    g) Growth and participation.

    The mission statement refers to what your organisation hopes to achieve.

9) A list of goals and objectives over the long term:

    a) Goals can be best described as the „destination points” being aimed for. They act as

    the reference guide for the decision making. They give you a clear picture of where

    your organisation wishes to be in the long term.

    b) Whilst, objectives are specific and represent shorter term „measuring posts‟ for the

    organisation progressing towards achieving the goals.

10) Tables identifying key performance areas, goals, objectives, strategies, action plans;

    The plan needs to be set out in such a way that makes it logical and easy to read and

    understand. Tables provide a way to achieve this see the Strategic Business Plan

    template.

    THE STRATEGIC BUSINESS PLAN A GUIDE TO PREPARATION NSW DEPARTMENT OF SPORT & RECREATION 6

11) Management structure; - this section can be in the front part of the plan or, in the

    addendum. It contains an organisational chart showing the corporate governance structure

    of the organisation i.e relationship between board/committees/management in larger

    organisations. Whilst also identifying key people in your organisation.

    12) SWOT analysis - see The Marketing Plan/Section and „Understanding the environment‟.

13) Financial data see The Financial Plan/Section

14) Appendices.- see next section

    THE STRATEGIC BUSINESS PLAN A GUIDE TO PREPARATION NSW DEPARTMENT OF SPORT & RECREATION 7

4) THE BODY OF THE STRATEGIC BUSINESS PLAN

This can then be divided into four distinct sections incorporating all of the above fourteen

    items as follows:

i. The Management Plan/Section

Describes the business of the sporting or recreation organisation and includes:

? Cover sheet title and time frame

    Example: NSW Widgets Strategic Business Plan 1999-2003

? Table of Contents

? A statement of purpose

    ? An Executive summary that, in a nutshell, reports past achievements, outlines future

     challenges and performance targets

    ? A signature page for decision-makers and those other responsible for implementation

     and review to sign

    ? A mission statement; that focuses the organisation to put its goals into writing so

     that they can be reviewed and analysed periodically

    ? A strong unified sense of direction incorporating vision of both a State and National

     Example: a vision statement

? An organisational chart

    Example: Management structure etc,. Could be included as an addendum

? Organisational values; (if appropriate)

     Example: what are the internal and external values of NSW Widgets.

ii. The Marketing Plan/Section

Details a market analysis and statement of issues which are facing the organisation and also

    identifies key performance areas in relation to promotions and media relations, sponsorship

    and fundraising, merchandising, product development and service delivery, market

    positioning etc.

Marketing plays a vital role in any successful organisation. How well you market your

    organisation, along with a few other considerations, will ultimately determine your degree of

    success or failure. The key element of a successful marketing plan is to know your members

     their likes, dislikes, expectations. By identifying these factors, you can develop a

    marketing strategy that will allow you to arouse and fulfil their needs.

    THE STRATEGIC BUSINESS PLAN A GUIDE TO PREPARATION NSW DEPARTMENT OF SPORT & RECREATION 8

Identify your members by their age, sex, income, educational level and residence.

Develop marketing strategies by answering these questions below:

    1. Who are your members? Define your target market(s).

    2. Are your markets growing? Steady? Declining?

    3. What membership pricing strategies have you devised?

    4. What will attract prospective sponsors to your organisation?

    5. What competitors does my organisation have that will impact on membership growth?

Remember to:

    ? Include the key performance areas

    ? Identify realistic and achievable goals and objectives

    ? Establish strategies

    ? Develop detailed action plans

    ? Formulate time lines

    ? Assign responsibility to strategies and actions steps

    ? Forecast budgeted cost

    ? Identify performance outcomes

Much of this information can be included in the work sheets as shown in the template.

iii. The Operational Plan/Section

Identifies key performance areas in relation to administration and human resource

    management which includes:

? Employment matters

    ? Volunteers recruitment/training/maintaining

    ? Coaching and athlete development

    ? Participation membership, social justice issues gender equity, disadvantaged groups

    ? Sports science

    ? Education and training

    ? Facilities and equipment

Much of this information can also be included in the work sheets as shown in the template.

iv. The Financial Plan/Section

Includes revenue and supply sources, financial plan - a budget for all operational and

    marketing, forecast balance sheet, cash flow, profit and loss statement.

A. Financial Data

    ? Balance Sheet

    ? Pro-forma income projections (profit & loss statements)

    ? Three year summary

    ? Detail by month, first year

    ? Detail by quarters, second and third years

    THE STRATEGIC BUSINESS PLAN A GUIDE TO PREPARATION NSW DEPARTMENT OF SPORT & RECREATION 9

    ? Assumptions upon which projections were based

    ? Pro-forma cash flow

B. Supporting Documents (FOR banking institutions ONLY if requiring loans)

    ? Tax returns of principals for last three years

    ? Copy of proposed lease or purchase agreement for building space

    ? Copy of licenses and other legal document

    ? Copy of resumes of all principals

    ? Copies of letters of intent from suppliers, etc.

Remember:

? List a summary of performance measures;

    ? Details financial plan/budgets/targets/;

    ? Review and evaluation.

    ? Strategic Business Plans should be a user friendly/reader friendly document, which

    drives the business. It should be a useful management tool used by the organisation

    to identify its future direction and measure its performance. ? All Strategic directions should be clearly defined, outcomes focussed and

    measurable.

    ? The performance of the organisations using the above systems can be reviewed

    weekly, monthly, quarterly, annually.

Sound financial management is one of the best ways for your organisation to remain

    profitable and solvent.

How well you manage the finances of your organisation is the cornerstone of every

    successful business venture.

To effectively manage your finances, plan a sound, realistic budget by determining the actual

    amount of money needed to operate your organisation (operating costs).

The operating budget will reflect your priorities in terms of how you spend your money, the

    expenses you will incur and how you will meet those expenses (income).

    It should allow for the following expenses.

Operating Budget:

    ? Personnel

    ? Insurance

    ? Rent

    ? Depreciation

    ? Loan payments

    ? Advertising/ promotions

    ? Legal/ accounting

    ? Miscellaneous expenses

    ? Supplies

    THE STRATEGIC BUSINESS PLAN A GUIDE TO PREPARATION NSW DEPARTMENT OF SPORT & RECREATION 10

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