It is often said that failing to plan is the same as planning to fail. This is often true, particularly in business. A business plan will give you a clear picture of your business’ goals and the strategies and roadmap to follow to make it successful. Your business plan will document key strategies in each area of your company including sales, marketing, operations and finance. It also discusses your recruitment strategies and hiring plan, which are perhaps the most important. Why? Because without the right team, you won’t be able to expertly implement your strategies. In this article, we’ll talk about how to build a business plan that’s highly effective by incorporating your hiring plan into each key section.
A great business plan includes the following sections:
The management team section of your plan has two key sub-sections. The first discusses the members of your management team and their responsibilities and backgrounds. The second is your hiring plan that outlines the key people you must hire. For each new hire, you must identify the key qualifications and characteristics of the ideal candidate. Use the rest of your business plan to determine who your key new hires should be as follows.
The Company Overview section lays out the key accomplishments your company has achieved to date. Use the development of this section to assess which past hires have been successful and why.
Ideally, you can document the characteristics of your most successful employees and use them as a checklist for finding new ones.
The industry analysis section discusses the size of your market and market trends. In writing this section, think about whether you have the personnel to succeed in the coming years. For example, if trends in your industry point to increasing uses of technology, you must consider whether training your existing employees in new technologies is more appropriate than finding new tech-savvy employees.
The customer analysis section of your plan details your target customers. It documents their demographic qualities and their wants and needs.
From a hiring perspective, think about whether your existing employees embody the same characteristics as your target customers. At least some of your staff should share similarities to your customers to ensure you properly service their needs. If you’re lacking, think about hiring new employees that better see eye-to-eye with your customers.
The competitive analysis section of your plan discusses the strengths and weaknesses of your competitors and identifies areas in which you have or must gain competitive advantage.
One of the most common areas of competitive advantage is staff; oftentimes the company with the best team wins. Think about what hires you might need to build a stronger company than your competitors.
Your marketing plan details the products and services you offer and how you will most effectively acquire new customers and build repeat business.
There are lots of proven marketing strategies to accomplish the latter. But, you not only need the right strategies, but the right people implementing them. So, make sure you have the right team in place to execute on your marketing plan.
Your operations plan lays out the milestones your company hopes to achieve in the coming years. Key milestones typically include sales milestones, customer milestones and staffing milestones. Such milestones go hand-in-hand. For example, to reach $10 million in sales, you may need to serve 5,000 customers and to serve 5,000 customers, you may need to grow your staff to 800 employees.
In developing your growth strategy and goals, you need to spend time identifying the key hires you’ll need to implement your strategy.
The financial plan section documents your financial projections. In developing your projections, you’ll create assumptions such as sales growth rates. Along with sales growth will be growth in expenses, most notably in human resources.
Here you will have to not only identify and incorporate the key hires you need to make in the coming years, but estimate the salaries each will make so that you can build a realistic forecast of financial performance.
As you can see, while your hiring plan is most specifically detailed in the Management Team section of your business plan, it should be incorporated into every other section. Because without the right team in place, your company will not be able to execute on its strategies nor achieve its vision.