Business Plans

Business plans

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  • Created by: Gabriella
  • Created on: 18-12-10 14:04

Business Plan definition

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.

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Benefits of Business plans.

+ 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.

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PROBLEMS WITH BUSINESS PLANS

-- 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.

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INTERNAL USES

() 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

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Contents of a simple business plan

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.

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BANKS

.....Offer own business plan packages.

business link- gov. funded guidance on planning.

BT have websites dedicated to start-ups.

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BUSINESS PLANS GIVE A COMPETITIVE ADVANTAGE

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.

 

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BASIC PLAN..

INTRO..

OWNERSHIP..

OPERATION PLAN..

MARKETING.. (Market research)

FINANCE..

REGULATIONS..

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