There are eight key areas to a business plan:
- SUMMARY OF BUSINESS PLAN
An introduction to you, your proposed business, product or
service and a financial overview
- MANAGEMENT
Detail of your (and partners etc.) management and/or
business experience
- PRODUCT / SERVICE
Detail the main product/s and/or service's
- MARKETING
Past, present and future of sales capability, competitors
and customer profile
- SALES
Your product/service unique selling points and prices, who
will sell, advertising avenues
- OPERATIONAL
Business location, equipment in-situ, proposed equipment
- SHORT-TERM TRADING
Short-term objective, contingency plans
- FINANCIAL DOCUMENTS
Profit and Loss Account, Balance Sheet, Cash Flow Forecast
CONTENT
You should approach the completion of your business plan
with confidence and a positive slant within the script
(after all, you are not going to use all the bad things
you have done in your life and career in your new venture,
are you?). If there are any area's that a lender needs
expanding on they can ask you to explain when you meet.
The purpose of the plan is to show the lender; that you have covered all aspects of the venture, that you have a suitable history to undertake the venture
and that you have a good chance of success.
Should you attach a CV? If you are requested to do so,
then you must, but keep any CV down to 2 - 3 pages and
concentrate on the CV complimenting the business plan. If
it is your choice, only provide a CV if it has an obvious
benefit to your business plan. Remember, a CV is about what
'you' can do, it is not about 'you' - whether you collect
stamps or that your children are called John and Jane will
have no 'positive' effect on the lender. However, in the
example business plan it states that John is married with
two kids: this is included to show commitment, reliability
and not least responsibility. As Jane is a single female
there is no real positive or negative aspect.
SIZE OF THE BUSINESS PLAN
The size of a business plan depends on the type and size of
business, and of course the amount of funding you require.
A £5,000 loan to open a shoe repair shop would suffice with
a seven page business plan and basic financial documents. A
loan of £35,000 to open a hi-fi shop would need extensive
notes, and detailed financials that may need the use of an
accountant to achieve 100% balanced projected accounts.
The following is a business plan for a fictitious company
Acme Training Services & Computer Sales, with fictitious
business owners, who sell computers and provide training
services. The figures, specifications and scenario's used
in the plan are not intended to be accurate. Click here for the sample business plan
