developing business plans

• BUSINESS PLAN- a working document outling the aims and objectives of the business. It includes details of their financial, marketing, operational and HR requirements in starting the business.
• SMART TARGETS- Specific, Measurable, Attainable, Relevant and Time-based
• COMPETITIVE ADVANTAGE- any element of your business planning, structure or management and operation that provides you with an advantage over your competitors
• SWOT ANALYSIS- examination of the businesses' strengths, weaknesses, opportunities and threats
• COLLATERAL- another name for security offered against a loan. This is usually in the form of an asset such as a building
• OBJECTIVES- the medium to long-term aims of a business

BENEFITS

• it ensures that decisions have been carefully considered. This should increase the chances of sucess
• It helps secure investor investment
• provides clear targets and shows the direction of the business

PROBLEMS

• costs are typically underestimated as they are based upon little or no previous experience
• it requires constant updating because the market never stands still
• it takes a long time to create and it relies upon accurate research

• Financial Forecasts E.g. cash flow
• Market Research
• SWOT Analysis
• Staffing Needs
• Business Aims & Objectives
• Business Name, Location and Legal Structure

Small firms can lack either the time or the skills and experience to construct an accurate plan. They have to rely upon help, advice and support from a variety of sources which include:

ACCOUNTANTS & BANK MANAGERS- financial help and advice...how to acquire finance...

GOVERNMENT- business link provides free independent advice on setting up business via their website

SMALL BUSINESS ADVISORS- local enterprise agencies and bodies such as 'The Prince's Trust' also provide help and even funding for business ideas