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Definition of a Business
A business is an organization that supplies products
and services in response to identified market needs
and opportunities in order to fulfill its stated mission,
goals and objectives.

What is a Business Plan?
Simply put, a business plan is a blueprint for the
development, execution and control of a new or
existing business. Business plans specify the “whats”
and “hows” involved in bringing new ideas, concepts
and desired outcomes into reality or moving a
business in a desired direction (change). Business
plans can be facility-focused, program-focused,
operationally-focused or financially-focused. A
typical business plan addresses:

a) what you hope to accomplish by being in
business (i.e. your primary mission, motivation,
fundamental goals and desired outcomes - why
you exist and what you are all about)
b) the main vehicles by which you plan to attain
your goals (i.e. your business foundation,
products, services, programs, etc.)
c) how you intend to acquire and organize the
resources required to run your business and meet
your goals (i.e. land, facilities, equipment,
materials, finances, partners/associates, systems,
staff etc.)

The Benefits of a Business
Plan
Business plans are used extensively by all types of
businesses and service organizations to meet
internal and external planning needs. Many
organizations attest that a well thought-out business
plan is the key to succeeding in a complex,
demanding and competitive market environment.
Here are some benefits of having a business plan:
􀂙 Sets priorities, provides a focus and demonstrates
commitment
􀂙 Motivates action, buy-in and support
􀂙 Encourages realism in setting expectations for
what you can accomplish
􀂙 Anticipates problems and avoids setbacks and
roadblocks in the future
􀂙 Saves time and money in getting a business off
the ground and keeping it running
􀂙 Ensures proper resources, processes and
structures are in place
􀂙 Ensures that your organization and its
deliverables are marketable, competitive, viable
and sustainable
􀂙 Supports optimization of resources, efficiencies
and implementation of best practices
􀂙 Serves as a benchmark for measuring
performance and success
􀂙 Provides the basis for confidence of lenders,
investors and sponsors to support your business
􀂙 Communicates goals, objectives and
expectations to stakeholders, so that everyone
can work cohesively toward desired outcomes
Leisure Services Policy
When Do You Need a
Business Plan?

A business plan is recommended if you want to:
􀂙 Create a new business to provide products
or services
􀂙 Market new products or services through
your existing business operation
􀂙 Create a partnership or joint venture for a
business initiative, product or service
􀂙 Expand your business, its products and
services
􀂙 Improve your business, its products and
services (market share/penetration, profit,
efficiency/productivity, quality)
􀂙 Control your business (maintain market share,
costs, efficiency/productivity, quality)
􀂙 Change/refocus/re-align/restructure your
business or organization, its products and
services in new strategic directions
􀂙 Discontinue your business operation
􀂙 Transfer, sell or assign your business
operation
􀂙 Acquire a business operation
Business Planning in an
Organization
The application of business plans varies from one
organization to another and depends on the scope,
size and structure of an organization. Businesses that
are small or have a fairly narrow focus may require
only one business plan. Organizations that are large
and multi-dimensional may require more than one
business plan in order to effectively direct and
manage all facets of its operation. Business plans for
each distinct business unit or business stream may
be required. A business unit is a sub-organizational
entity with a specific focus and a logically connected
system of services, activities, resources and
operations. A business stream may be an activity or
service which crosses through more than one
business unit. Each organization must identify
sensible business units and develop an effective
strategy for business planning to meet its own
specific needs.
A potential risk in developing business plans at a
sub-organizational level is that business units may
literally take on a life of their own if the business
planning process is not managed or coordinated
properly. As a result, business units may become
internally focused, possessive, competitive, out of
synch and ultimately counterproductive to broader
organizational goals. It is imperative that
sub-organizational business plans integrate and
support the highest level organizational goals and
strategic directions. Many larger and more
sophisticated organizations produce and maintain
strategic plans to summarize their most
fundamental goals, objectives, strategic directions and
organizational culture. Again, business plans are
meant to support identified organizational strategic
directions and goals.
For the Parks and Recreation Department, the
Strategic Plan (1997) provides the fundamental
goals, objectives and strategic directions. The
Leisure Services Policy (2000), a business
process to ensure effective decision making in
service delivery, outlines where in the
decision-making process that Business Plans are
required.
Recently the Department has prepared Business
Plans for: McNichol, the Music Centre, Senior
Services and Tansley Woods. Work plans
anticipate development of business plans for the
following over the next two years: aquatics,
arenas, Brant Hills, LaSalle, Tyandaga, Preschool
Services, Youth & Teens, Department Marketing,
Ebusiness, the Waterfront and the North East City
Park.
Leisure Services Policy
The key steps to be considered in the development
of a business plan are listed below. The level of
detail, analysis and involvement may vary
depending on the nature and scale of the business
and the timeframe of any new initiative.
WHERE ARE YOU NOW?
1. Business Profile
􀂙 Description of the business you are in
􀂙 Origin/History
􀂙 Mission, goals and objectives
􀂙 Benefits or outcomes of your business
2. Operating Summary
􀂙 Identify all existing business activities
􀂙 Define current volume of business/service (i.e.
# of users, classes, courses, hours of operation)
􀂙 Describe applicable service standards (e.g.
accessibility, quality, customer service, safety)
􀂙 Include any governing laws and regulations
􀂙 Describe existing facility (location, size, space
needs)
􀂙 Outline existing staff complement (e.g. # of
staff, # of hours, wages, qualifications, etc)
􀂙 Define equipment, materials and supplies
􀂙 Identify business processes and functions (e.g.
budget, business planning, research and
development, training, maintenance, etc)
􀂙 Describe organizational structure and/or
include organizational chart
3. Market Assessment
􀂙 Identify target market - size, location,
demographics (profiles and growth forecasts),
customer needs and preferences, activity and/or
facility trends
􀂙 Evaluate current products, services and
customers: sales, participation, your market niche
(e.g. McNichol is a waterfront heritage facility),
benchmarking
A SNAPSHOT OF THE
BUSINESS PLAN PROCESS
􀂙 Analyze comparable or competitive facilities:
profile, use, pricing, operating issues and
implications
􀂙 Identify gaps or market opportunities: can you
deliver greater value to customers and/or
create comparable value at a lower cost?
WHERE ARE YOU GOING?
4. Strategic Directions
􀂙 Develop strategic directions related to
identified target markets (i.e. preschool,
business meetings, a specific geographic
location)
􀂙 Consider the following questions:
a) Can you perform different activities
from competitors or perform similar
activities in different ways?
b) Have you identified new customer
groups or new technologies?
c) Does the strategy create a unique
positioning or reflect an innovative
approach?
d) Is the strategy compatible with the
Corporate and Department culture and
goals?
􀂙 Evaluate alternatives and confirm directions,
products or services to be provided
􀂙 Develop specific objectives for each new
direction or focus area.
􀂙 Identify preliminary performance measures
and targets for each objective to address such
items as efficiency/productivity, market share,
customer service evaluation, new customers,
cost recovery, profit or sales/usage volume.
Remember that effective strategy development
requires deliberately selecting what you wish
to achieve, and deciding not to provide some
other services. A customer focus does not
mean you must serve all customer needs or
respond to every request.
Leisure Services Policy
HOW WILL YOU GET THERE?
5. Implementation Strategy
􀂙 Develop actions to accomplish each objective.
These may include facility design and
development or establishment of new programs
and policies.
􀂙 Identify responsibility and a timeline for each
objective.
6. Marketing Strategy
􀂙 Prepare a market strategy outlining where you
want to be in the market (e.g. beginner level
courses, sole provider)
􀂙 Review pricing considerations, including the
competitor analysis, and develop a pricing
strategy
􀂙 Develop a promotion and advertising program
7. Financial Plan
􀂙 Prepare short and long-term financial
objectives (e.g. cost recovery, profit, debt
reduction, capital planning reserves)
􀂙 Identify implications for facilities and programs
􀂙 Prepare operating budget
􀂙 Prepare capital budget
HOW DO YOU KNOW IF
YOU HAVE SUCCEEDED?
8. Performance Measures and Benchmarking
􀂙 Revisit the preliminary performance measures
developed in Step 4 and revise as necessary to
ensure they remain feasible.
􀂙 Identify benchmarks of competitors against
which to evaluate your business.
TIPS
􀁘 A Business Plan is typically prepared for a three
year term but may be done more frequently.
􀁘 Implementation of a Business Plan will require
development of more detailed action plans on
an annual basis.
􀁘 Generally, a Business Plan should be between
10 – 15 pages in length and should not have
more than 5 – 7 focus areas.
􀁘 To prepare your organization or unit’s first
business plan, development of the business
profile and market assessment will take a lot of
time and provide a lot of information. It may
be appropriate to provide the details of some
of this work in an appendix.
􀁘 The Business Plan document should be written
to easily identify for the reader where you are
headed and how you will get there.
􀁘 Each Business Plan will be custom -designed to
meet the objectives of the particular business.
Not all areas listed above need to be included
in each business plan.
􀁘 Be sure to provide sufficient time in the
process to develop, assess and reconsider
strategic objectives.
􀁘 Business Plans should be developed in
collaboration with your governing board, if
applicable, and be approved by Council.
􀁘 The approved Business Plan should be shared
with all staff and be the basis for future
decision-making.
􀁘 Following approval, implement the plan and
continually monitor your activities and
performance against the goals you established.
Watch how the Business Plan will focus your
activities, make resources go further, keep
everyone working towards the same
outcomes and make it easier to manage your
business!
Leisure Services Policy
Business Planning Process
Business planning should be seen as a continuous
cycle and not a one time activity that ends after a
business plan has been completed. Once a
business plan has been developed and
implementation is in progress, continuous
monitoring and evaluation will ensure that the
business is on track and that its goals and
objectives are still relevant, realistic and attainable
“in the real world” as opposed to “in theory”.
The frequency of formal business plan evaluations
and updates ultimately depends on the nature of the
business and its products and services. A business
plan typically has a life span of three years and should
define short term (1-3 year), intermediate (4-5 year)
and long term (6-10 year) objectives. A 3-year
period allows enough time to mobilize, iron out any
wrinkles, achieve short term targets and position the
business to meet longer term objectives.
The 3-year business plan should be reviewed at least
once each year in advance of or in conjunction with
annual budget preparation. Semi-annual reviews
may be ideal. For an ongoing business operation, a
thorough business plan review and update should
be undertaken every 3 years. However, a major
change initiative may force a new business plan
earlier. Imposing formal business plan updates on an
annual basis even though no major change initiative
has occurred may be overly cumbersome and
counterproductive. Too much energy could be spent
on planning and not enough on service provision.
The business planning process always begins with the
identification or affirmation of organizational mission,
values and goals. The next step is to define the
services/products that will enable the organization
to achieve its mandate and goals and meet
identified market/community needs. This includes
projecting the quantity of service and developing a
pricing strategy that the market will bear. From here,
the process moves into a typical activity-based
costing exercise where all business activities are
identified, the resources required to carry out the
activities are determined, and the associated costs
to carry out the activities and produce the service
are identified. The next step is to project revenues
and confirm or adjust pricing relative to short and
long-term business cost recovery or profit objectives.
The last step is to develop performance benchmarking
and identify key performance measures.
This process is described further in “Snapshot of the
Business Plan Process” and outlined in Chart 1. The
chart also demonstrates the typical implementation,
monitoring and reassessment steps following approval
of the Business Plan.
Need help in preparing
your business plan in a facilitation,
coordination or research role?
Call the Policy and Research Planner at
335-7600 ext. 7785.
Leisure Services Policy November 2002
Leisure Services Policy
NOTES
November 2002
“The support of the Government of Ontario through the Ministry of
Citizenship, Culture, Tourism and Recreation is acknowledged.”
“The views expressed herein are those of the City of Burlington
and do not necessarily reflect those of the Government of Ontario
and the Monistry of Citizenshop, Culture, Tourism and Recreation.