Business Plan

The following is information on what a business plan should contain and offers guidance on areas that you should consider when creating a business plan. The business plan should give detailed information for a minimum of 12 months and there should also be a 2 – 5 year plan covering:

History and Background

• Where the idea for the business came from and the people behind it

Mission Statement and Objectives

• Focus on the business, how you want the business to be seen showing both the owners objectives and the business objectives

Products and Services Offered

• Be specific - describe your Unique Selling Proposition

Market Analysis - This should be as detailed as possible. It should show information about:

• Target market - size, and if it is seasonal
• Customers - characteristics, requirements and special customers
• Current sales analysis – type and value (£)
• Competitor analysis
• Product life cycle
• Pricing level and strategy
• Profitability and contribution analysis of sales
• Sales monitoring systems
• Advertising and promotion
• Sales and distribution arrangements
• Strategy for developing sales
• Strengths, Weaknesses, Opportunities, Threats (SWOT)

Operations and Resources Employed

• This should show the key points re: management, staff, subcontractors, premises, equipment
• The source of any materials, the legal structure and insurance provisions made. (It is often useful to include C.V of all key management people)

Financial Information

• Sales forecast
• Cash flow forecast
• Profit forecast
• Break-even calculation
• Projected balance sheet
• Assumptions used

Make sure you take into account capital expenditure, finance costs, etc and include supporting schedules if necessary. You should also show the affects to any of your assumptions.

Complete the report with an executive summary, and contents page