Business Plan

1. Business Plan

2. 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.

3. 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)

4. 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.

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

6. 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.

7. 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).

8. 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.

9. 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

10. 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

11. 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

12. 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.

13. 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