How to Prepare a Business Plan

The follow sections will be required in your business plan:

Introduction to Your Business Plan

• Who are the promoters & what is their previous experience?

Executive Summary

• What is the proposal?
• Who are the personnel?
• When is the proposal launch timed for?
• What finance does the proposal require?

Main Body of Your Business Plan

Management of the Business

• Who will be the directors/principal of the business?
• Who are the owners?
• Who are the senior management?
• What other staff are required?
• Have you considered staff contracts of employment?
• How will the directors/senior management/staff be paid? i.e. salary, bonuses,commissions, etc.
• What skills and experience will your staff require?
• Will you need to provide ongoing training for your staff?
• Have you considered government incentive schemes for employers?

Management Information

• Will you need periodic accounts or other information i.e.weekly/monthly/quarterly?
• To what extent will you computerise the operation?
• What personnel will be responsible for providing information?
• How reliable will the figures be?
• What have the results been to date?
• Have you carried out sensitivity analysis?

Product Details

• Describe your product or service.
• What is the required quality of your product?
• Is there a range of products you wish to provide?
• What differentiates your products from your competitors?
• What is the pricing structure of the product(s)?
• How is this different from your competitors?

Production Process

• Does your product follow a production process?
• What are the worker&machinery requirements?

Image

• Have you considered the use of brands, patents, copyrights?
• What sort of image do you wish to project for your product? i.e. quality
• What image does your competition have?
• Do you have a logo for your product(s)?
• Do you know what business stationery you require and have you arranged to print this?
• Have you arranged for signs to be made for your business premises?

Business Name

• Have you decided on a name for your business?
• Does this name conflict with another on the business names register?
• If you are trading as a limited company has this been formed?
• Is your chosen company name on the company registration office register already?

Market Trends & Promotion

• Have you done any market research for your business?
• What are your target markets?
• Are there any new products coming onto your target market?
• What range of products are currently being provided on your target market?
• Have you considered the use of a marketing consultant?
• How will you present&promote your product on the market?

Customers

• Who will be your main customers?
• What value of business would you anticipate from each of your main customers?
• Who are your contacts for each main customer?
• Who are your potential customers?
• How do you wish to attract new customers?
• Have you considered the use of internet business?

Competition

• What are your main strengths in the market?
• What do you feel gives you a competitive edge?

Terms of Trade

• Do you offer credit and what are your credit limits for your customers?
• What are your credit terms and how many days do customers have to settle your account?
• Do you have a debt collection policy to control your credit terms?
• Can you accept cash, cheque or credit card payments?
• What payment terms do you have with your suppliers?
• Do you offer discounts?

Suppliers

• What is the quality required of the product supply?
• How reliable are your suppliers?
• How available are your supplies?
• What is the product you need supply of?
• How will you distribute your product?

Advisors, Finance & Grants

• Who are your advisors i.e. financial, legal, technical&marketing?
• What is your capacity to raise finance?
• Who are the potential investors in your business i.e. banks/credit unions/government agencies etc?
• Have you appointed an accountant/tax advisor?
• What assets/activities will the finance be used for?
• Have you opened a business bank account and arranged for authorised cheque signatories?
• What are going to be your main costs?
• What turnover do you require to break even?
• What grant aid is available for your business i.e. for capital expenditure, labour costs, business development, etc.

Taxation

• Have you considered the taxation framework for your business?
• Have you registered your business for VAT/PAYE/Business Tax?
• Have you considered the legal structure of your business i.e. sole trader/partnership or limited company?
• Have you considered the accounting system requirements for your business?

Health & Safety, Professional and Industry Standards

• Have you considered the requirements of the health&safety at work legislation?
• Is your business aware of professional or industry standards and is it regulated in any way?

Premises

• What square footage is required?
• Where do you wish to locate your business?
• What safety standards apply to your business?
• Have you considered government tax incentive schemes that may be available in certain geographical areas?
• Are you going to buy or lease the property?
• Have you appointed solicitors?
• Have you arranged for utilities to be connected?
• Have you considered whether to lease or buy your equipment?

Insurance Requirements

• Have you considered the insurance cover for your business i.e. equipment, stock, premises, employers liability, public liability, loss of profits, etc?

Conclusions

• What are your personal strengths and weaknesses?
• What opportunities are available should you take a certain course of action?
• What are the main threats to your business if you do not take the opportunities available?
• What contingencies have been provided for?
• On balance what is the case for investment?

Appendices

• List of main assumptions.
• Financial accounts (both historic and projected)
• Cashflow projections
• Sensitivity analysis
• Detail of premises
• Capital expenditure projections
• Staffing projections
• Management structure
• C.V.’s of key staff
• Schedule of grants