Developing Business Plans

Bus 1

Business Plans

A Business plan is a report describing the marketing strategy, operational issues and financial implications of a business

start-up.

Business Plans

Benefits

• Helps clarify objectives

• Enables owners to know exactly what needs to be done in order to meet their objectives

• It is essential for persuading lenders to invest capital

• It is a valuable tool to help in the running of the business, it is not just for banks/lenders

Problems

• Must be accurate and realistic

• Many underestimate costs

• They can often be over optimistic

• Sales forecasts can be unrealistic

ContentDetails about the business, personal information

Objectives

Marketing Plan

Production Plan

Fixed assets, financial forecasts, details of finance needed and repayment, collateral

offered

Long-term plans

SWOT analysis

Sources of information and guidance

• Traditional sources- bank managers or accountant• Business Link

http://www.businesslink.gov.uk/bdotg/action/home• Local enterprise agencies and local trade associations• The Prince’s Trust http://www.princes-trust.org.uk/

In 2005 the Annual Small Business Survey suggests that 26% of new businesses had not sought advice from anybody before starting up! A further 22% only consulted friends and families