How to Prepare a Business Plan
If you're about to start a business (or approach a financial institution for funding to expand your existing business), then you must have a business plan.
Your plan allows you to set your goals, assess your strengths and address your weaknesses.
You wouldn't set out on a journey not knowing where you were going, yet many people establish a business with no real concept of what they want to achieve or how they'll achieve it.
The outline below shows what you need to include in your business plan; use it to gather the appropriate information so that you get your business off to the best start.
EXECUTIVE SUMMARY Quote (about your vision for the business) What already exists The niche -- as you see it and benefits your business will bring Type of business proposed -- benefits you will bring to the market niche Overall financial goals -- anticipated sales and profits Funds required to start up business BUSINESS PROFILE Business name Principals Description of business: o what it aims to do o its target market Vision -- ultimate goals Mission -- value, service you'll offer Competitive advantage you have -- e.
g.
flexibility, able to draw on wide base of talents, connections in the industry etc.
SWOT analysis [Strengths Weaknesses Opportunities Threats](Be honest with these, but only put in threats, weaknesses that you know you can meet and overcome successfully) Objectives: o at the end of the first 12 months of operation o after 12 months PRODUCT AND MARKET ANALYSIS Product / Service -- description of what you're offering Features Benefits Price structure Industry description and outlook Market demand -- percentage of market you think you can capture; competition share you think you can take etc.
OPERATING PLAN Resource requirements: o what you need in order to operate o what this will cost List items and specify prices (tables etc) MANAGEMENT PLAN Manning levels: o details of staff required o training needed Experience of managers and their skills MARKETING PLAN Divide this into: Internal - how you'll win repeat customers and referrals External - how you'll get new customers Impact - how you'll target specific groups Detail how you'll go about targeting and selling to each group e.
g.
Service levels Vouchers Hand-outs Music Decor Entertainment Special add-ons Etc.
Publicity and direct approaches you'll make (specify targets e.
g.
music schools etc) Promotion (e.
g.
freebies, discounts, buy one get one free, every 6th something free, charity performances, openings etc) The actual product / service you're selling FINANCIAL PLAN Details: o Projected sales o Projected costs o Projected profits Give SPECIFIC details e.
g.
break down into gross profits, overheads, net profits etc.
ACTION PLAN Use table to show: o Activities to be carried out o When these will be done o Who will do each Give a chronological sequence of action to show how you plan to start and develop the business.
Provide plenty of graphs (use different styles), tables, facts and figures.
Get info from Bureau of Statistics on demography, socio-economic groups, age etc etc.
Have AN appendix and include any extra details (for example: newspaper cuttings about bands bemoaning the fact that they can't get their CDs cut etc).
By following this outline, you'll have a realistic goal for your business ...
and your bank manager!
Your plan allows you to set your goals, assess your strengths and address your weaknesses.
You wouldn't set out on a journey not knowing where you were going, yet many people establish a business with no real concept of what they want to achieve or how they'll achieve it.
The outline below shows what you need to include in your business plan; use it to gather the appropriate information so that you get your business off to the best start.
EXECUTIVE SUMMARY Quote (about your vision for the business) What already exists The niche -- as you see it and benefits your business will bring Type of business proposed -- benefits you will bring to the market niche Overall financial goals -- anticipated sales and profits Funds required to start up business BUSINESS PROFILE Business name Principals Description of business: o what it aims to do o its target market Vision -- ultimate goals Mission -- value, service you'll offer Competitive advantage you have -- e.
g.
flexibility, able to draw on wide base of talents, connections in the industry etc.
SWOT analysis [Strengths Weaknesses Opportunities Threats](Be honest with these, but only put in threats, weaknesses that you know you can meet and overcome successfully) Objectives: o at the end of the first 12 months of operation o after 12 months PRODUCT AND MARKET ANALYSIS Product / Service -- description of what you're offering Features Benefits Price structure Industry description and outlook Market demand -- percentage of market you think you can capture; competition share you think you can take etc.
OPERATING PLAN Resource requirements: o what you need in order to operate o what this will cost List items and specify prices (tables etc) MANAGEMENT PLAN Manning levels: o details of staff required o training needed Experience of managers and their skills MARKETING PLAN Divide this into: Internal - how you'll win repeat customers and referrals External - how you'll get new customers Impact - how you'll target specific groups Detail how you'll go about targeting and selling to each group e.
g.
Service levels Vouchers Hand-outs Music Decor Entertainment Special add-ons Etc.
Publicity and direct approaches you'll make (specify targets e.
g.
music schools etc) Promotion (e.
g.
freebies, discounts, buy one get one free, every 6th something free, charity performances, openings etc) The actual product / service you're selling FINANCIAL PLAN Details: o Projected sales o Projected costs o Projected profits Give SPECIFIC details e.
g.
break down into gross profits, overheads, net profits etc.
ACTION PLAN Use table to show: o Activities to be carried out o When these will be done o Who will do each Give a chronological sequence of action to show how you plan to start and develop the business.
Provide plenty of graphs (use different styles), tables, facts and figures.
Get info from Bureau of Statistics on demography, socio-economic groups, age etc etc.
Have AN appendix and include any extra details (for example: newspaper cuttings about bands bemoaning the fact that they can't get their CDs cut etc).
By following this outline, you'll have a realistic goal for your business ...
and your bank manager!
Source...