Business Planning

Increases the likelihood of business success and is required in some finance applications such as a bank loan. The business plan shows how the business will develop over time – vision for the business and potential profitability.

A well written business plan will:

Force owners take an objective, unemotional, critical overlook of the business idea
Outlines a road map and development of the business
An action plan which identifies critical tasks and set goals
Flag potential problems
Show the owner is cautious, responsible and credible – increase investor confidence

Contents of a business plan:

Executive Summary: Business overview, describes business opportunity, marketing and sales strategy, operations and finance
Business Opportunity: Description of the product, price and quantity to be produced
Buying and Production: Where resources will be supplied from, production method to be used, cost of production.
Financial Forecasts: Sales Forecasts, Cash-Flow forecast, profit-loss forecast and break-even analysis
The Business and its objectives: Name of the business, address, legal structure, aims and objectives
The Market: Size of the potential market, description of the potential customers, nature of the competition, marketing priorities
Personnel: Who will run the business, how many employees, skills and experience of those who will work in the business
Premises and Equipment: The premises to be used, equipment which needs to be obtained and financed
Finance: Where the finance to start up and run the business will be source