Business Plans

A business plan is a document setting out the business idea and showing how it is to be financed, marketed and put into practice. It is likely to be a crucial part of an attempt to raise finance from outside sources such as a bank.

+ If the plan is well received by investors, the may compete to offer attractive terms for obtaining capital.

+ Forces the entrepreneur to think carefully about every aspect of the start-up..(however could over think and cause panic! (-).

+ May encourage entrepreneur to employ experts and advisers if they realise they lack the skills needed for the business to reach its potential.

+ Many entrepreneurs have the whole plan in their head not on paper; if illness or accident strikes, plans allow others to keep things going.

-- Business success is often about people not paper; an over focus on a perfect plan may mean too little time spent visiting suppliers or talking to shoppers.

-- Problems arise if planning is too rigid; needs to be flexible, so that a business is prepared for the amount of sales.

-- Plans based on high sales will induce lots of staff to meet demands.

-- MAKING A FORECAST DOESN'T MAKE IT HAPPEN! Entrepreneurs sometimes confuse plans with reality, this can come as a shock.

() Clarify objectives

() Provide a sense of DIRECTION and FOCUS.

() Help run and control business

() Monitor progress and success.

() Improve performance

() Improve MOTIVATION and COMMUNICATION

() Allocate responsibility

WHERE the IDEA came from and WHY it's a good one.

KEY TARGETS: SALES, PROFIT, GROWTH (DIRECTION)

FINANCE REQUIRED- SOURCES of finance from founder and external sources, period of time.

MARKET OVERVIEW: Main segments, market size (value and quantity)

HOW THE BUSINESS WILL OPERATE-LOCATION, STAFF, DISTRIBUTION

CASH FLOW forecasts+Trading..

Sources of information and GUIDANCE.

.....Offer own business plan packages.

business link- gov. funded guidance on planning.

BT have websites dedicated to start-ups.

Why have business plans for start-ups...??

*Provides FOCUS

*Clarify thoughts

*Helps test FINANCIAL VIABILITY- Can it achieve the required level of profitability.

*Measure performance

*Raise finance from external sources.

INTRO..

OWNERSHIP..

OPERATION PLAN..

MARKETING.. (Market research)

FINANCE..

REGULATIONS..