Business Plan

What is a business plan: A business plan is a statement issued by the promoters, owners or managers of a business outlining how they expect the business to develop over the next 3 to 5 years. It outlines the objectives of the business and how these are to be achieved.

Purpose of a Business Plan It states the goals and objectives and sets out how these are to be achieved. It is required by financial institutions when finance is being sought and also by county enterprise boards when assistance is being sought It is useful to a person starting a business in mapping out the route to be taken and in becoming focused. To act as a source of information for potential lenders or investors (shows investors people setting up the business know what they are talking about)

Importance of a Business Plan To ensure that the owners and managers understand clearly what is required to make a success of venture; To raise finance for the business, for example loans from financial institutions and potential investors, grants from state agencies or the European Union: To set targets that provide a yardstick by which to measure the company’s performance( can be measured in units or targets.) To formulate the company’s future business strategies; To help the owners and the managers anticipate problems and prepare solutions to them.

Contents of a Business Plan Although every plan is different, there are a number of common key headings.

Contents of a Business Plan 1. Description of business and owners This will contain: The name and address of the business. Type of organisation, i.e. sole trader, limited company etc. Any licences and registration needed. Details of the nature of the business and its goals. Information on the owners and their background and experiences where these are relevant.

Contents of a Business Plan 2. Market Opportunity Details of the opportunities available to the firm. Descriptions of : Potential customers Total market Competitors (especially their strengths and weaknesses).

Contents of a Business Plan 3. Management Team This gives details of: The number of people involved. Their role. Their qualifications and experience The organisation structure where relevant.

Contents of a Business Plan 4. Marketing Strategy Details of the firms strategy relating to: Target market Product and its unique selling point (usp) Pricing Promotion Place: Projected targets

Contents of a Business Plan 5. Production Facilities: Where the product is being produced Details of the equipment Its capacity Quality control programmes and procedures

Contents of a Business Plan 6. Financial Analysis Details of the sources of finance used by the firm The present financial position (if not a start- up operation) Projected financial statements (projected profit s and revenue) Trading, profit and loss account Balance sheet Cash flow forecast (shows money coming into and going out of business in future years) Credit and stock control details

Contents of a Business Plan 7. Staffing: What staff will the firm require This will contain details of the present staffing levels throughout the business.

Class Work Design a Business plan for any of the following businesses using all 7 headings: Sweet Shop Laundromat Video Store Gym Web designer Sports store