Business Planning

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Business Plan

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Where will be in the future?

A vast wealth of information and support is available to entrepreneurs looking to establish business Government organisations, trade associations, confederations and many more are sources of information and support for business. These organisations have advisory services available, websites and lists of other links which are designed to provide excellent services to businesses.

A business plan is a document which details the objectives, plans, strategies, financial forecasts and the market in which the businesses will be operating. Its primacy aim is to provide substantial outlook which will enable the business to secure financial backing and funding from financial institution and prospective investors. 

A business plan is also used as an instrument of measurement to compare the actual performance of the business to forecasted figures.

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What a business plan provides

Business plans provide essential information on how the business is expected to take off and develop.

The person responsible for driving the business towards achieving goals must be included. It's also important to provide information on a set target period, during which the business aims to achieve its goals.

Since its important for the business to acquire funds and financial support, the business plan must show how many invested intends to be properly managed and that there are adequate accountability measures in place.

This gives the business a high level of credibility because any potential investor knows that in the near future, it'll be reaping the rewards of investing in the business.

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What a business plan should include

A business plan should include a description of the proposed business, business start date, sector in which it would be categorised, history of the business, legal structure. 

Product details and services offered, unique attributes of the product, target market, relevant information on the sector, patents, trademarks, design rights as applicable, features of the market place, market niche, basis for identifying such a market, competition in the market place and who the major players are. Characteristics of the market including current issues affecting the market, development and size of the market. 

Marketing methods, sales tactics, how will potential customers be identified and targeted, methods of positioning the businesses to have a favourable competitive advantage, pricing, policy standard for all customers or flexible to adapt to different customers, distribution process for the products to reach consumers, sales tactics to be utilised, face to face, website, telephone. 

Financial figures forecast on profit and loss which estimates the sales projections, the costs involved in production and expenses and business running costs or flow of cash in and out of the business for the first 12 months.

Sales forecast- income from the sales of products.

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Trade Association

Trade Association - safeguard interests of its members in a particular industry.

Secure the best for its members, pay a fee in return for receipt of vital services.

Provides advice in the application of law and solving problems as they arise.

Negotiate with the government when it comes to formulation of policies and laws, in order to ensure that these are favourable for its members.

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Business Link,Chambers of Commerce, Business Enter

Business Link- support service, throughout GB.

Provides services that enable businesses to write business plans, provide training, specialise in EU regulations which pertain to the production of high quality goods and services of publications institute has contributed to lending a voice to the government in matter concerning its members.

Chambers of commerce- across GB, provide best opportunities for members from various industries, seeks to provide the best opportunities for members and can liaise with the central and local governments, to provide grants and training support for businesses.

Business Enterprise and Regulatory Reform overseas the welfare of business, support, advisory, specifically cater for any business, irrespective of its industry and sector.

European Union is an international body which regulates its member state al across Europe.

GB as a member, it automatically entitles businesses within the UK to benefit from the services and information EU provides.

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Private support services

Private support services are available for enterprises, communication services, telecommunications, mobile, postal and internet, advertising and media services to the business.

Solicitors providing legal services ranging from advice on contracts and law, to debt recovery, and audit checks make sure that the business is in a healthy condition and complying with current lefilature.

Financial services, banks and insurance companies provide cash handling, direct debits and standing orders, foreign exchange handling and international money transfers, cash and cheque processing.

The importance of managing exposure to risks in business makes it imperative for businesses to obtain insurance cover and pay a premium.

From theft, to indemnity and fire, there are a range of insurance services which are tailored to proved enterprises with what they need to have the right level of protection.

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Potential Investors

Every business that intends to be in existence for some time, and intends to have maximum impact in its market environment needs to have a consistent and sustainable plan that will help it achieve its objectives.

Importance of a business plan can't be ignored.

Potential investors are impressed by a business start up that has a strong and clear focus.

Gives them a high level of confidence because they know that there's potentially tremendous reward available to them in return for investing in your company.

Business plans are often seen as relevant to new enterprises, however they are also applicable to already existing businesses. With the growth of the business, there should be a constant upward review of the business plan to see how they business innovates itself and remains at the top compared to its competition.

It's an important gauge to measure the performance of the business.

When the business has diverted from its major goals, having a business plan review enables the business to focus better on its priorities.

It's common for appraisals of the business to be done quarterly or bi-annualy, that's twice a year.

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Planning

Planning is essential to the day today running of a business. 

It also means that targets and goals must be established which would help the business function effectively daily. 

As the days turn to weeks and weeks to months, the business can see that indeed its exceeding its working targets and meeting its goals as set out in the business plan.

Potential areas of weakness can be monitored.

Employees performance can be identified and rectified before such issues escalate and become a major problem for the business.

Not only that, the performance of products and services can be tracked and if product lines are not yielding enough, then the issues can be dealt with effectively. 


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Performance and Problems

Performance indicators are the strong tools which measure the impact the business activities are having on its market.

New product development- more product lines a business has that attract more customers, the stronger will be it's performance. 

Market share- this is the percentage of the total market which is controlled by the business.

Profit generated over a given time period, individual and collective business productivity levels.

Problems with business plans, you can get easily carried away with them and ignore the practical realities of the market encironment.

Business plans must appreciate that there are serious risky activities that any business which intends to survive must avoid.

Needs to make appropriate provision for the avoidance of such risks.

Any investor or lender needs to know that the business is prepared for the market obstacles and setbacks can be addressed thoroughly without costing the business major loses.

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Performance and Problems

Performance indicators are the strong tools which measure the impact the business activities are having on its market.

New product development- more product lines a business has that attract more customers, the stronger will be it's performance. 

Market share- this is the percentage of the total market which is controlled by the business.

Profit generated over a given time period, individual and collective business productivity levels.

Problems with business plans, you can get easily carried away with them and ignore the practical realities of the market encironment.

Business plans must appreciate that there are serious risky activities that any business which intends to survive must avoid.

Needs to make appropriate provision for the avoidance of such risks.

Any investor or lender needs to know that the business is prepared for the market obstacles and setbacks can be addressed thoroughly without costing the business major loses.

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First impressions

Business plans are the first impressions that portray the business in positive or negative light.

No enterprise wants the first impression to be negative.

Therefore, vagueness of ideas and a lack of clarity needs to be avoided.

Numerous business proposals have been rejected because they lacked enough enformation.

A good business plan must show that the owners are knowledgeable about the market they're getting into.

The more research information is show of the plan, the better the plan will  be understood by anybody else who reads it.

Market research, when properly conducted, shows how viable a business is and whether it can withstand market conditions to emerge successful over a period of time.

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Basic rules

There are basic rules that give a subtle and yet deep insight into the business.

Simple things like proper presentation, grammatical accuracy, proof reading and spell checking documents are basic rules to follow.

It speaks volume to investors and lenders to see how unprofessional entrepreneurs can get when these basic rules are ignored.

Business plans can be impractical, relay false information and misleading figure.

In order to avoid these, there should be clear, factual evidence.

As a business grows, new problems will arise, resourcefulness to counter any problems.

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