In most cases when you’re looking to start a business you may need
to borrow money from a bank or another lender such as The Prince’s
Trust. Agencies such as these will ask you to provide a business plan
to demonstrate your understanding of running a business.
Business Plans can take on many forms but have fairly standard content outlined below:
- Executive Summary - A summary outlining the business idea, costs of equipment and stock required and how much investment is needed)
- The Business Idea
- Business name, detailed description, ownership structure, self
employment or sole trader, experience you have, how it differs from
others, how the business can develop
- Markets and Competitors
- Existing business profiles, target customer profiles, size of market,
customers already lined up, why people will choose you over existing
businesses
- Sales and Marketing - How
will your service meet specific needs, market position “price, quality,
customer service”, How will you sell to your customers, how will you
target potential customers, how will you promote your products eg. PR,
advertising etc, direct mail
- Management
- Who will run the business, your own strengths and weaknesses,
management information systems and procedures “accounts, sales, stock
control”, business support and mentors
- Operations
- Indicate facilities needed to start, employee roles you might need,
suppliers of stock and equipment and why you’ve chosen them. Location
of business if identified or type of premises required.
- Financial Forecasts
- Broken down and detailed sales figures, cashflow forecast, profit and
loss accounts for at least 1 years trading and turnover required to
breakeven. The cashflow forecast should be flexible.
- Financial Requirements
- How much you need, loan or otherwise, what exactly will it be used
for “stock purchasing, initial marketing etc”, if you get a loan you
need to confirm you can afford repayments through the cashflow forecast
- Financial Barriers - Existing Barriers to raising finance, credit history etc