Creating a Business Plan

Network of County and City Enterprise Boards Business Planner

Starting a Business - Preparing the Business Plan

The key to any successful business is to plan properly. The composition of your business plan is one of the most important tasks you will do when setting up your new business. Remember the primary function of your business plan is to convince you of the viability of the venture you are proposing. It needs to be a realistic working plan and not merely a document to impress funding organisations or agencies. The business plan needs to be your plan which you believe in and be able to justify the figures and underlying assumptions.

The business plan is an ongoing document and the most important reasons for its preparation are as follows:

To provide a detailed, logical and flexible framework which your business will follow in the early stages of start up
To collate your ideas and verify that your business idea is realistic and viable
To set targets and plan for the future
To act as a base against which future performance can be assessed and evaluated
To use as a basis for discussion with third parties, such as banks, investors, government agencies etc.
To attract the necessary start up funding needed for your business
To predict future scenarios and enable you to recognise problems / threats to your business, for which you can devise preventive measures

Suggested Business Plan Outline:

The first page of your plan should details the name, address and contact details of the promoters along with the business name and a confidentiality clause.

Your business plan should include the following sections:

Executive Summary
Aims, objectives and vision
Legal status and licences
Management & Organisational structure
Market Research and Marketing Plan
Product Range / Services Offered
Sales
The Operating Plan
The Financial Plan
Appendices

Compiling your Business Plan:

There are many risks involved in starting a business and is not a decision to be taken without due consideration. The risks can be reduced by planning carefully and above all seeking assistance at as early a stage as possible.

The step by step guide which follows may help you to ask questions and obtain the necessary information, which will minimise the risks involved. Information is the key to making any decision, so it is no surprise that it is vitally important to fully assess your business idea before putting your money at risk. Yes, your money because even if you obtain grants or loans you as the business promoter will need to take the largest risk.

By following the outline of the business plan preparation, you will be in a better position to decide if you wish to set up the business. If you decide to proceed the business plan you have prepared will assist your negotiations with banks, investors and state agencies, as you will have compiled a comprehensive plan.

The Business Plan:

We have provided you with the following aids to create your Business Plan:

The step-by-step instructions to create a Business Plan manually may be used to complete the Business Plan Template, or you can use your computer to complete the plan in stages by means of the Automated Business Planner.

You can save each stage when complete and return at a later date to commence the next section.

When you have finished your plan, read over it to see if you have omitted any item or need to re-work any section. Once this is complete it is recommended that someone else should peruse the plan. This affords you the opportunity of having a critical but friendly review of your plan, prior to releasing it to banks, grant agencies etc.

It is better to discover deficiencies at this stage than have them picked up by those whom you are asking to invest or fund your business.

Do not lose sight of the fact that your Business Plan is your blue print for success. A well prepared and thought out plan forces you to think about the future and likely challanges ahead. It also forces you to consider your future financial requirements, marketing plan, management plan, competitors and your overall strategy for success.