Start UpWriting a Business Plan

Your Business Plan is the one tool that will be the most valuable to you in the initial stages of starting your business. It isn’t just needed for you to be able to open your business bank account or receive your EDBS grant; it may also be the basis for you to secure funding from potential investors. It is essential to explain what you expect the business will do, what market opportunities exist and should include financial forecasts.

For your own purpose, the business plan helps you prepare, structure the financial aspect of your business and plan your activity for the first twelve months of your business.

Useful tips

• Your Plan should be 8-10 pages long with any additional pages as appendices or enclosures.
• The most important part of the plan is the market research which shows evidence of potential customers.
• Do not underestimate your funding requirements.
• Be honest, logical, consistent and realistic.

Your business plan should include the following aspects:

Executive summary

This includes an overview of your business and a full description of your business activity. Describe, in detail, the range of the services or products you intend to supply indicating major activities. Will you add to your range by linking with suppliers of related services/products?

The Business Opportunity

This is where you need to describe the business, what you plan to sell or the service that you wish to offer, why you want to do this and why. You should also note the legal requirements such as planning permission etc.

Structure of the Business

This section should begin with stating the type of organisation such as sole trader, partnership, limited company etc. and who will be running your business. You should also conduct a SWOT analysis outlining your strengths and the potential strengths of your business, weaknesses that the business has, opportunities for your new venture and the threats to your success. It is also useful to highlight what you will do if a threat occurs and how can the risk be reduced? e.g., if you are unable to work due to illness, have vehicle problems or lack of customers.

Your marketing and sales strategy

A good starting point for this is to look at Product, Place, Price and Promotion known as the “4p’s.” Think about the following aspects:

• How do you see the Product/Service developing over time?
• How and where your products/services are to be distributed.
• Establish your pricing structure
• Describe how your customers will find out about your product or service.

You should analyse your competition both locally and nationally as appropriate and include information such as their product/ services, strengths and weaknesses and price structure.

You should undertake market research and draw conclusions from this. This will help shape the 4p’s and your customer service delivery.

Management team and personnel

You should include your skills, possibly your CV details of the people that you have recruited if applicable.

Operations

This is all about where you will be running your business from, your production facilities, your management information systems and IT.

Financial Information

Using the information identified from your market research you should now build up a picture of how your business will perform financially. This details your start up expenditure and needs to show your total start-up and capital (fixed asset) costs. It should include expenditure, set up costs and how your business will be funded. It should also include personal expenditure for you and your family and your cash flow forecast.