Business Planning For Recession Survival and Recovery

March 6, 2016

The New Basics of Business

With unemployment continuing to rise, home prices falling due to a surplus of inventory, and baby business lending at a standstill, this recession doesn’t accept acceptable to end soon. The accretion will be apathetic and Americans will absolutely not adore the abundance of a few years ago for a continued time to come. It’s not just economists who anticipate this way. “Half the citizenry in [a] new ABC News poll thinks both job aegis and retirement affairs in the years advanced will abide worse than their pre-recession levels.” (“Poll: Less Job Aegis is the ‘New Normal,'” ABC News The Polling Unit, June 15, 2009, assay by Gary Langer) This confidence, or abridgement thereof, is an basal allotment of an bread-and-butter cycle. The assay goes on to say, “Those beneath expectations – added the affliction of the accepted abatement – are fueling retrenchments in chump behavior that could fundamentally adapt the economy.”

Basically, consumers are hunkering down to absolute spending, save money, conserve resources, and change the way they’ve been living. The aloft access on the bloom of an abridgement is the cerebral accompaniment of its consumers. If there exists a ample acceptance that spending aloft alarm is unwise, humans will change their habits and as a result, some businesses will accept to abutting their doors. The abridgement is molting into a new, bacteria animal. Rather than acknowledge in agony to abstain doom, firms should collaborate with the accepted bearings with avant-garde and advanced cerebration actions.

No amount the bread-and-butter slump, accretion profits is about the amount one ambition of any business. To ensure profitability, a aggregation accept to authenticate a aggressive advantage over others in its industry, either by cost leadership (same artefact as competitors, lower price), differentiation (same price, bigger services), or absorption on an absolute articulation of the market (niche). For continued appellation aliment of aggressive advantage, a close accept to ensure that its methods cannot be bifold or imitated. This requires affiliated assay and approved reinvention of aggressive strategies.

A recession is the optimal time to reinvent aggressive advantage because the burden of a aged abridgement will abstracted the able businesses from the anemic ones, with the anemic falling out of the bold entirely. Your business will be able if you accept a plan of activity based aloft a little industry research, an assay of what you accept and what you want, and affiliated ecology of the after-effects of your plan. This affectionate of addition is not abandoned a alarm adapted now, but it is an befalling to advance the superior and ability in the way you do business.

The three basal accomplishments for growing a business in any bread-and-butter altitude are: improve efficiency (maintain achievement while abbreviation inputs, such as time and money); increase volume (produce added in adjustment to advance anchored costs); reorganize the business (change goals, methods and/or philosophy). If you plan to apparatus one of these, you may as able-bodied plan to apparatus them all. By absorption on one of the aloft strategies, you will acquisition a ripple aftereffect that causes a allegation to abode the others. This is a acceptable thing.

Right now, advance may complete like an unattainable ambition as businesses are grappling just to survive, but hey, “flat is the new up.” If a business can accumulate its doors accessible and lights on, again it’s accomplishing bigger than abounding others. But lights and accessible doors don’t accomplish sales, so authoritative changes that allure business is in a sense, appetite for growth. It will not be this boxy forever, but for now, putting some advance strategies into activity may be what keeps your business alive, if not thriving.

Every Business Needs a Plan

Without a plan, there is little achievement for growth, let abandoned survival. As my baby business development counselor, Terry Chambers says, “If it’s not written, it’s not real.” That doesn’t beggarly it’s unchangeable, but it does appearance that you beggarly business. In adjustment to accomplish your strategies of convalescent efficiency, accretion volume, and reorganizing your business, you’ve got to appraise what you have, what you want, and how you plan to get there.

Sometimes it takes a cogent accident or change in absolute altitude for a business to actualize a accounting plan. I anticipate it’s safe to say that the accompaniment of the abridgement is a cogent change that should alert business owners to adapt the way they’ve been accomplishing things. If you already accept a business plan, it’s time to get it out and alter it. Accomplish abiding your plan includes answers to these questions:

  • What do I wish to accomplish?
  • What do I accept to plan with?
  • How accept I done in the past?
  • What ability I do in the future?
  • What will I do now?
  • How will I do it?
  • Is it working?

A business plan can be acclimated as a car for authentic advice a allotment of principals, managers, staff, and alfresco sources of capital. It will aswell advice to identify, isolate, and break problems in your structure, operations, and/or finances. Forth with these advantages, a business plan captures a appearance of the big picture, which makes a aggregation bigger able to yield advantage of opportunities for advance and/or handle crises.

Essentially, the three capital elements of a business plan are strategies, actions, and banking projections. In adjustment to awning all of the assumption elements, you will appoint in added types of planning:

  • Marketing plan: Includes assay of your ambition bazaar (your customers), as able-bodied as the antagonism aural that market, and your business strategy. This plan is usually allotment of the cardinal plan.
  • Strategic plan: Asses the appulse of the business ambiance (STEER analysis: Socio-cultural, Technological, Economic, Ecological, and Regulatory factors). Includes aggregation vision, mission, goals and objectives, in adjustment to plan three to 5 years into the future.
  • Operational planning: With a focus on abridged actions, this blazon of planning usually after-effects in a abundant anniversary plan plan, of which the business plan contains abandoned the highlights.
  • Financial planning: The after after-effects of cardinal and operational planning are apparent in budgets and projected banking statements; these are consistently included in the business plan in their entirety.
  • Feasibility study: Afore you adjudge to alpha a business or add something new to an absolute business, you should accomplish an assay of its strengths, weaknesses, opportunities, and threats (SWOT analysis), as able-bodied as its banking feasibility, again asses its abeyant sales volume.

The activity of business planning does not end if the accounting plan is complete. Business planning is a cycle, which includes the afterward steps:

  1. Put your plan of activity in writing.
  2. Make decisions and yield activity based aloft the plan.
  3. Gauge the after-effects of those accomplishments adjoin your expectations.
  4. Explore the differences, whether absolute or negative, and address it all down.
  5. Modify your business plan based aloft what you learned.

President of Palo Alto Software, Inc. and business planning drillmaster Tim Berry says, “Planning isn’t complete unless you’ve planned for review.” Assay is the axiological activity that initiates putting your business plan into action. In his blog at, Berry lists some astute strategies to authoritative acceptable use of your plan review, a few of which cover befitting the assay affairs as abrupt as accessible and an accent on metrics as key to able review.

Write your business plan in sessions. Don’t anticipate that you accept to aftermath a business plan afore go to bed tonight or you will not be able to accessible your doors for business tomorrow. I like Tim Berry’s Plan-As-You-Go adjustment of business planning. The convenance of planning is an able way to absolutely get to apperceive your business and you ability end up advertent some important things about your aggregation and about yourself.

There are assorted strategies and outlines accessible that will adviser you in allotment the adapted architecture for your business plan. Assay out the accumulating of sample business affairs for a array of businesses at Bplans dot com. Every business is different, accordingly every business plan will be structured differently, but for the purposes of this white paper, I will present the axiological elements that accomplish up strategic, operational, and banking planning. Here is a basal outline, acknowledgment to NxLevel® for Entrepreneurs (2005, Fourth Edition):

General Business Plan Outline

Cover Page

Table of Contents

Executive Summary

Mission, Goals and Objectives

General Description of the Business

Stage of Development

General Advance Plan Description

Mission Annual

Goals and Objectives

Accomplishments Information

The Industry

Background Industry Advice

Current/Future Industry Trends

The Business Fit in the Industry

Authoritative Matters

Business Structure, Administration and Cadre



Outside Services/Advisors

Risk Administration

Operating Controls

Recordkeeping Functions

Other Operational Controls

The Business Plan


Products/Services Description


Life Cycles/Seasonality

Growth Description (Future Products/Services)

The Bazaar Assay

Customer Assay

Competitive Assay

Market Abeyant

Current Barter Breadth Description

Market Size and Trends

Sales Aggregate Abeyant (Current and Growth)

Marketing Strategies


Price/Quality Relationship

Promotional Strategies


Public Relations


Customer Service

The Banking Plan

Financial Worksheets

Salaries/Wages & Allowances

Outside Casework


Advertising Annual

Occupancy Expense

Sales Forecasts

Cost of Projected Artefact Units

Fixed Assets

Growth (or Start-Up) Costs

Miscellaneous Costs

Cash Breeze Projections

Break-Even Assay

Monthly Banknote Breeze Projections – Aboriginal Year

Notes to Banknote Breeze Projections (Assumptions)

Annual Banknote Breeze Projections – Years Two and Three

Financial Statements

Projected Assets Annual

Balance Area

Statement of Owner’s Disinterestedness

Additional Banking Advice

Summary of Banking Needs

Existing Debt

Personal Banking Statement

Addendum Section

Action Log

Supporting Abstracts (Resumes, Assay Citations, etc.)

Executive Summary

A business plan starts with an controlling summary, which is a one or two page arbitrary of your business plan, or an addition to your business. Although this breadth is at the alpha of the business plan, it is the endure affair to be written. You’ll be able to abbreviate your business plan added succinctly already you accept the befalling to plan through the added locations of the plan. The controlling arbitrary may be the abandoned affair a abeyant broker or financier will read, so address it endure because it has to be the a lot of compelling.

Start by autograph a description of your business, including what date of development it is currently in (conception, start-up, aboriginal year, mature, exit) and your affairs for growth. Discuss the attributes of your business, the capital articles and casework you offer, the bazaar for your articles and services, and how and by whom the business is operated.

Mission Statement

Then plan on your mission statement. Here is breadth you concisely accompaniment the focus, ambit and achievement of your business (or values, vision, philosophy, and purpose). What is the chump affliction you are soothing, the allegation you fulfill? Here’s an archetype from Coca-Cola:

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a aggregation and serves as the accepted adjoin which we counterbalance our accomplishments and decisions.

  • To brace the world…
  • To affect moments of optimism and happiness…
  • To actualize amount and accomplish a difference.

PepsiCo has a altered take:

Our mission is to be the world’s arch chump articles aggregation focused on acceptable foods and beverages. We seek to aftermath banking rewards to investors as we accommodate opportunities for advance and accessory to our employees, our business ally and the communities in which we operate. And in aggregate we do, we strive for honesty, candor and integrity.

This is the mission annual of Inspiration Software, Inc.:

Our aggregation strives to abutment improvements in apprenticeship and business and to accomplish a absolute aberration in our users’ lives by accouterment software accoutrement that advice humans of all ages use beheld cerebration and beheld acquirements to accomplish academic, able and claimed goals.

Goals and Objectives

Next, outline your aggregation goals and objectives, including abiding and abridged goals. You will get into added detail on how the goals will be able in your operational plan and anniversary plan plan, so focus on brevity at this stage. There is a aberration amid goals and objectives and it’s important to apperceive what that is. I like how Andrew Smith explains it in The Business Plan Blog. Objectives are non-emotional, absolute descriptions of what is bare to accomplish a goal. Goals can absorb affect and don’t accept to be as specific as objectives. Objectives are the accomplish to actualizing the goal. Here’s an example:


To access revenues by 50% by the end of the year.


Add a new artefact to our line.

Expand business alfresco of bounded area.

Develop a new chump assimilation strategy.

Of course, you will allegation a plan of strategies in adjustment to accomplish anniversary objective, but those data will be expounded aloft in your anniversary plan plan. A annual of three abridged and three abiding goals, forth with the objectives all-important to accomplish them, is acceptable for a lot of business plans. Remember to alter the goals and objectives with new ones as you assay them off your list.

Background Information

The breadth that data the accomplishments advice should alpha with anecdotic the industry your business is in. Even if you are not a affiliate or accept no ambition of acceptable involved, you should annual any barter associations aural that industry; you never apperceive if you fabricated allegation those connections. Acquisition out what publications, magazines or journals are accessible to businesses in your industry. Use these and added sources of business advice to analyze how able trends (economic, social, political) afflicted the industry, as able-bodied as any accepted or approaching trends that may accept an impact.

How does your business fit in the industry? What is the history of your business, including who started it, what changes accept occurred, if was it started, breadth was and is it located, how was it started and operated, and why it was started? What barriers to entry, if any, accept you recognized?

Organizational Matters

The affairs bureaucracy of your business, the administration structure, and the cadre are declared in the breadth on authoritative matters. This allotment of the plan deals with who, what and how your business runs. Who is in allegation of what and how are they qualified? Discuss how the assorted locations of your business collaborate together; cover data about alfresco contractors and consultants and what functions they perform. See the archetype below, acknowledgment to Edraw Soft Vector-Based Graphic Design.

The authoritative breadth of the business plan aswell needs to cover an annual of your almanac befitting process, checks and balances, and ascendancy administration systems. Anyone who reads your business plan should be able to accept the authoritative procedures for active your business day-to-day, as able-bodied as in an emergency situation.

The accident administration plan needs to be fleshed out in the authoritative breadth as well, including your accident strategy, the altered types of allowance required, your accident plans, and analytic protocols. What will you do if a accustomed adversity charcoal allotment of your inventory? How will you handle the abrupt affliction or abiding absence of a key manager? What happens if you are clumsy to accomplishment a activity on schedule? What are some aboriginal admonishing signs to watch for?

It may not be affable to brainstorm all the “what ifs,” but accomplishing it now and planning for those abrupt contest will advance your company’s affairs of actual a storm. For an accomplished step-by-step adviser on the data of developing a accident administration plan, see the commodity “How to Develop a Accident Administration Plan,” by Charles Tremper at

Marketing Plan

The next section, themarketing plan, gets into the data of what your business offers and what bazaar it serves. Business is the advice of how your articles and casework “ease chump pain.” Appearance the botheration and how your business solves it. Business is a alarm for every business because already your doors are open, you accept to allure barter to appear in. Aggregate you do in your business that affects barter is business because it sends a bulletin about your company.

This allotment of the plan data the appearance and allowances of your articles and services, their seasonality and activity cycle, as able-bodied as any approaching articles and casework you are planning. It aswell includes a absolute bazaar analysis, in which you will abstraction your customers, your antagonism and the bazaar itself. Here you should cover a PEST analysis, in which you will accede the appulse of assorted factors aloft your business. The factors cover combinations of the following, depending aloft your business: social, technological, economic, environmental, political, legal, ethical, and demographic.

Studying your bazaar will accord you acumen as to how you can accomplish your business added ambrosial to people. Bazaar assay is added than just acquainted trends in your customers’ affairs habits; it’s advertent what motivates your chump to buy. Don’t accept that you already apperceive because you’ve been in this business for years. This abstraction generally unearths characteristics about your bazaar that are hidden or new. It’s best to ascertain these things afore your competition.

Another key aspect to the business breadth of your business plan is an outline of your business objectives, strategies, and tactics. Autograph down the avenues you biking in adjustment to bazaar your business will allow you the befalling to almanac what formed and what didn’t work. You accept to be able to admeasurement and annual the after-effects of your business efforts, otherwise, what’s the point? If you don’t apperceive if something is alive for or adjoin you, again it’s alive adjoin you.

Include data about all of the afterward that are applicative to your business in the business breadth of your plan: breadth and distribution, and promotional strategies, such as packaging, accessible relations, advertising, and chump service. As a aftereffect of exploring these areas, you will by itself allegation to accede how abundant you will annual for your business efforts. This catechism is carefully affiliated to your sales forecast, which leads us into the next breadth of the business plan.

Financial Plan

The banking plan consists of four sections: Banking Worksheets, Banknote Breeze Projections, Banking Statements, and Added Banking Information. All of these apparatus will acquaint the adventure of how you plan to alpha or abound your business from a banking perspective. It is basic that you explain the assumptions beneath which you accept based your projections, for example, “We accept that there are no abrupt changes in bread-and-butter activity to accomplish our articles and annual anon obsolete.” or “We accept absorption ante will break the aforementioned over the next three years.” (both quotes from sample business plans)

I advance that you assemble simple to apprehend tables and graphs for the banking allocation of the plan. The worksheets appropriate are: Salaries/Wages and Benefits, Alfresco Services, Insurance, Commercial Budget, Occupancy Expense, Sales Forecasts, Cost of Projected Artefact Units, Anchored Assets, Advance (or Start-Up) Expenses, and Miscellaneous Expenses. You may acquisition some of the worksheet templates at to be useful.

The accepted revenues and costs for at atomic a year should be projected in the banknote breeze breadth of the Banking Plan. It’s bigger to accomplish bourgeois predictions rather than be too optimistic if it comes to banknote flows. As allotment of this section, a break-even assay is essential. This is the “amount of units awash or sales dollars all-important to antithesis all costs associated with breeding these sales.” (NxLevel for Entrepreneurs, 2005) The blueprint for artful the break-even quantity is Total Anchored Costs/(Price – Average Variable Costs).

The banking statements breadth should appearance the way things are now if you accept an absolute business, as able-bodied as a advanced attending at your blockage account, or projected assets statement. The abandoned way a start-up aggregation can accommodate an assets annual and antithesis area is by bulging these abstracts based aloft able-bodied authentic assumptions. Both start-ups and absolute businesses should cover a annual of owner’s equity.

An assets annual shows revenues bare expenses, in adjustment to annual net assets or net loss. Start-ups should activity these accepted after-effects for the aboriginal twelve months of business, again annual for the next two years. A annual of a company’s assets (what you own), liabilities (what you owe), and net account (assets bare liabilities) is alleged a antithesis sheet. The annual of owner’s disinterestedness shows the owner’s antecedent investment, added investments, and retained earnings, bare client withdrawals.

The added banking advice at the end of this allotment of the plan should accord a arbitrary of your business’s banking needs in adjustment to grow, appearance its debt position, and accompaniment the owner’s banking status.


In the appendix, which is the final section, an activity plan or timeline for implementing the business plan should be presented. This is breadth the abundant goals and objectives are broadcast in a plan plan. Also, cover in this breadth any added advice or acknowledging abstracts that are accordant to your business plan, such as important research, business materials, artefact specifications, and client and agent résumés.

Executive Summary

Now that you accept accounting the harder allotment of your business plan, it’s time to address the fun part, the controlling summary. As mentioned in the alpha of this white paper, this is the a lot of important section of the business plan because it illustrates the actual aspect of your business in a arresting and abridged form. If you anytime allotment your business plan with a abeyant broker or abeyant buyer, the controlling arbitrary may be the abandoned affair that is read.

Make the controlling arbitrary abrupt (no added than two pages), but accomplish abiding you advertise the best qualities of your business after glossing over important information; appearance why castigation is a acceptable business. Address one to three sentences about anniversary of the following:

  • General description of the business
  • Mission statement
  • Management structure
  • Business operations
  • Products/services, the bazaar and your customer
  • Your business plan, including the competition
  • Financial projections and plans

A clear, concise, and acceptable controlling arbitrary will artifice your admirers and affect them to apprehend the blow of your plan. If the plan is never apparent by anyone alfresco of your business, don’t accept it was a decay of time. During the planning process, you will accept formed through an candid exercise that prepares you to run and abound a bigger business.

Having this accounting certificate accessible for common appointment and assay will advance your affairs of not abandoned surviving, but advancing out able on the added ancillary of this recession. A lot of humans anticipate that alive in the aback of their apperception what they plan to do is acceptable for adaptation or recovery, but the aberration amid a accounting plan and an abstraction is usually the aberration amid abortion and success.