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Business Plans

Do I need to have a crisis management plan?

Businesses of all sizes need a plan that outlines what to do should an emergency arise.

Jaun Harmse




Does my small business need a business continuity plan or can I just wing it if and when the need arises?

Business continuity, IT continuity, and physical and data security are firmly on the boardroom agenda thanks to a growing focus on risk governance by legislators and regulators. As a result, more and more attention is being given to formulating plans to protect the business and ensure it can continue trading no matter what happens.

But plans are just words on paper until they have been properly tested. Of course, the only true test is an actual disaster, but that’s really not the time to find that your crisis plan has some holes. The only prudent course is to undertake a regular crisis simulation.

Crisis management forms part of the overall strategy for business continuity management and has two components: the crisis management plan itself and the communications plan. The crisis management plan details the responsibilities in the event of a crisis of key individuals and unit heads within the company, such as the CEO, COO, CIO, CFO and PR officer.

In today’s world of instant communication and overwhelming media scrutiny, the communications plan is more important than ever to help manage the impact of a disaster on a company’s reputation across its stakeholder community as well as the market as a whole.

For example, compare the proactive communications stance that helped New York’s mayor Rudolph Giuliani manage the media storm in the wake of the 9/11 attacks as compared with the damage caused to the BlackBerry brand by the silence of its owners, Research in Motion, in the wake of the infamous network outage in 2011. The brand has never recovered.

Training people how to use the multiple communications channels available in a time of crisis is vital. Used properly, communication can help turn a negative event into something positive, but this is not something that can be done on the fly. Immediacy is important, and mistakes have huge ramifications.

By their very nature, crisis plans are general because they have to cope with a wide range of possible scenarios. By contrast, the crisis simulation has to be very detailed and specific.

Careful research is needed to identify a company’s pain points when constructing the script for the crisis simulation, and then a third party is required to monitor what each member of the crisis team does.

One critical success factor is the quality of the person leading the team: one needs an individual who is confident, able to deal with pressure and can delegate, somebody who can look at the situation as a whole and keep track of all the moving parts.

Again, the only way to ascertain whether one has the right person in place is to see how he or she performs in the crisis situation.

Crisis simulation is established as part of business continuity management strategies but is also essential when it comes to IT continuity and physical/ data security. Typically, many of the same people are involved in each instance, so it makes sense to see crisis simulation as the way to ensure the company’s risk governance is not only place, but actually works.

Jaun Harmse has been involved in business continuity management (BCM), ICT continuity management (ICTCM) and information security (IS) since 2008. He holds a bachelor of Science and honours degree in information technology with the main focus of project management, information security and IT law. Harmse is a certified BCM practitioner and an associate member of the Business Continuity Institute (AMBCI) based in London. He is also a Certified Information Systems Auditor (CISA) through ISACA. He joined ContinuitySA in 2013 as a senior BCM consultant attending to the delivery of BCM and ICTCM projects across various sectors. He is also responsible for the delivery of ICTCM training for ContinuitySA clients.

Business Plans

Why do I need a business plan?

The process of developing your business plan allows you to focus on the business and how it’s going to operate.

Peter Gossman




I’m starting my own business and have downloaded business plan templates from your website. But it seems like a huge amount of information is required and it’s going to take me ages to complete. Exactly why do I need a business plan?

Starting, and developing, a sustainable business takes more than just a good idea, a superior product or great trade skills. Being the very best electrician, fashion designer, or website developer may cause you to be an excellent employee in a company, but it will not guarantee that you will be able to grow a successful business of your own.

An employee only needs to focus on his specialised role in the company, but a business owner needs to focus on every single aspect of the entire business.

You need a map to success

Building a business is like building a house. Can you imagine building a house without any designs or drawings? Or starting to build without first raising sufficient money to complete the house?

This is no less foolish than trying to build a viable and sustainable business without first sitting down and planning every aspect of your business. How many people could successfully build a house if all they had were some building materials and a picture in their mind of what they wanted their house to look like?

Sadly, this is exactly what happens to so many small businesses in South Africa. They start out with a good idea, some resources and practical skills, and they begin their businesses without any further planning or research. A recent survey revealed that only one in five small businesses manage to survive beyond three years.

There are many reasons why businesses fail, but in most cases, these failures could have been avoided if they had developed a comprehensive business plan before starting their business.

As with building a house, you will need to plan and develop beyond the scope of just your area of skill or expertise. Being a great bricklayer will help you to build the walls, but you will need more than just bricklaying skills to successfully complete the entire project. Similarly, having a skill, or a thorough knowledge of your products and services, will help you to build your business, but you will need more than just this to be successful.

Things to think about

  • You will need to research your industry, market and competition.
  • You must consider your marketing strategy, target market, ideal location
  • Know your potential customers “needs” and “wants”
  • What are your operational and management structures?
  • You must consider the financial components of running your business. This includes properly costing your products and services, preparing a realistic cash flow forecast and sourcing any required start-up finances.

How many financing institutions would give you a loan to build a house if you were unable to produce proper building plans, architectural drawings and a detailed cost analysis? Similarly, financiers will not give financial aid to your business if you are unable to present a detailed business plan.

A DIY plan is best

It is important that you write your own business plan, and not just pay someone to draw one up for you. Successfully running your own business requires you to know the very fabric and heartbeat of your business, being personally familiar with every aspect of it.

Take the time, effort and energy to personally research, plan and develop the best possible business plan for your new venture.

This is probably one of the most important things you could ever do for yourself and your business!

A business plan is not as difficult as it sounds. There are many great resources out there to help you to draw up a good business plan. If you are going to take the risks, and make the sacrifices, of running your own company, then you cannot afford not to develop a thorough business plan.

Start by breaking it down into its various components and focus on one at a time. Do it yourself, but seek advice and mentorship from others who have experience. Keep working on it, and keep reworking it, until you have developed the best possible business plan for your business. This will be one of the greatest factors in ensuring the success and sustainability of your business.

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Business Plans

Do I need a business plan for my one-man business?

All businesses, regardless of size, will benefit from having a business plan.

Guy Cloete




I have a small business in which I am the only employee. Do I still need to write a business plan?

In my experience (as a business mentor) my answer to this question is a resounding “Yes!”

Here’s why:

  • One Person Business: As a one-person business, you might feel that you have all the knowledge and information needed to run the business and to steer it in the right direction in your mind. However, a business plan can be used as a working document that can be moulded and adjusted over time as things progress. Michael Gerber in the E-Myth book points out that as an entrepreneur you need to know your primary aim because it provides you with purpose and energy for your daily activities. You should consider asking yourself questions that will help you to understand your primary aim.

By having an official business plan that has been designed by you to steer your course, you can assess any potential  opportunities as they arise and make a decision about whether or not they stray from or affect the original vision of your business.

If so, how far does it stray? And if it strays from it too much, will you be able to get back on course after the detour by making a lateral move? Or will it mean that you would have to backtrack after the detour to get back on to the original road.

It’s very important that your business plan is aligned to your life vision because it becomes product of your life.

  • Future Growth: You should also look at future growth in the business and the possibility of needing investment such as financial investment at a later stage. Without a decent business plan it will be extremely difficult (if not impossible) to attract any assistance. Ask yourself, “Would you get on board a ship which has no compass and simply trust the captain who says he knows where he is going?” I don’t believe you would. A solid business plan will provide some assurance to potential investors that you do have a plan and know where you’re headed!
  • Review: As previously mentioned, your business plan is a working document that should be reviewed every year. Add information where necessary and take out information which has become obsolete or irrelevant. This will allow you to look at opportunities which were perhaps not capitalised on during the year and others that could be put in to the plan for the upcoming year – all the while keeping the vision of the business in mind when making any decisions.

Every business, including the ‘one-person-owned business’, should view a current, relevant and company specific business plan as a powerful tool to assist them in ensuring that the business stays on course and ultimately reaches its full potential.

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Business Plans

What information should my business plan include?

Your business plan should capture who you are.

Darren Ryder




I’m in the process of doing a business plan but am swamped by information overload. Which information and how much detail should I include in the business plan?

The most critical information for any business plan is your vision and mission – the heart of who you are. Take time and effort over this part of your plan because this speaks to the core of everything your business is about and why you started it.

Your passion for your business becomes clear to the reader through the key words of your vision and your motivation behind starting your business is reflected in your mission statement.

This is what makes you, you, and why your business stands out from the crowd. These elements tell the reader this is where your business is headed.

  • It can excite a potential investor particularly where there is a “connect” with your dream.
  • It allows a marketing agency to properly understand your dreams and put together a package to successfully push your business into your target market.
  • It will speak to the heart of a potential employee, creating a desire to work for you and be a part of your team.

Your business plan also serves as a reminder to you the business owner of who and what you are about and in the tough times, it’s your bench mark, for things past, present and future.

6 important elements of a business plan

The guidelines below give you an overview of what the business is about, and demonstrate your research, planning and understanding.

Bear in mind that even if the reader knew nothing about you or your business, that after they have read your business plan, they should have a good idea and enough information to begin making some informed decisions.

Broadly, cover the following:

  1. Business and industry information
  2. Type of legal entity
  3. Where you fit into the related industry
  4. Your product or service offering and what makes it unique
  5. Your target market – ie who is your customer
  6. Marketing – how you plan to reach your target market
  7. Broad operations and structure of your company
  8. Financial projections and requirements
  9. Personal investment into business
  10. Start-up requirements
  11. Expected returns

Each business plan is unique and specific to that business, so these are just some guiding principles. And, remember that your business plan should be viewed as a living document that you need to keep up to date and relevant.

You’ll find a free business plan template here.

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