Business Plans The Wisteria Business Plan getting started manual.

What is a business plan? The business plan captures the strategic, operational and financial aims

of the company.

…and so the business plan should be a realistic representation of your forecasted assumptions.

A business plan mustn’t be thought of as a rigid prediction of every future occurrence, but more of a formal document that systematically address both the problems and threats for new ventures and ones that are currently trading.

A business plan may save you time and money in the future. Thinking about the possible bumps in the road ahead, whilst considering how the company intends on manoeuvring around those potentially derailing potholes.

Why I may need a business plan?

It is useful to have a business plan as an in-house document. Have you ever thought about having a business plan completed after the first year of trading? It is most certainly a good idea to record the businesses actual figures against the originally forecast figures. By doing this, better enables the business to track the growth of the business and better forecast the trajectory next time around. This may be instrumental in setting budgets, ensuring that the business is not only prepared but capable of operating at an increased capacity and has a better indication of the resources that will enable it to do so.

Visa Purposes - In order to trade overseas a business proprietor may be required to frequently travel back and forth between their home and the host country. For this, border officials will need to see evidence that the business is a) profitable b) provides jobs and stimulates the economy and c) the operations of the business is not at odds with the country’s legal requirements. This criterion will often have to be met before a Visa is issued and this is a common form for writing a business plan.

…Why I may need a business plan?

Funding - If you’re relying on investment, it is important that you present a comprehensive business plan that reflects the current economic conditions.

A comprehensive business plan may also be required in order to establish a franchise. This acts an agreement permitting the sharing and usage of trade name, trade mark and confidential business data. It is important for the franchisor to review your business plan in order to be gain assurance that the potential franchise owner is committed and capable of adhering to the agreed standards of quality and service in exchange for an on-going support.

…Why I may need a business plan?

Businesses are under pressure from environmentalists, activists and the media to be greener, whilst still attempting to hold on to market share and often gain a competitive edge. Society’s expectation of business practice is constantly on the rise and as such, businesses are being forced to adapt to more ethical operations. Therefore as a business you may want to do more, or better still, to be been seen to be doing more. Introducing environmentally friendly measures is simple, and often a business plan is seen as the most effective platform to convey your businesses intent.

The structure of a business plan?

Executive summary – although this chapter is the first that the reader should be presented with, this tends to be written last. The executive summary should provide a broad overview of all the functions of the business. This should be snappy and encourage the reader to progress with the document.

What is the concept? Here is your opportunity to explain, what you’re aiming to achieve, location and perhaps how this idea came about?

Product/Service - Here is your opportunity to introduce and ‘sell’ the businesses main sources of revenue.

Personnel section - This important chapter lets the reader know who is behind the business, levels of experience, expertise and all the factors that will inevitably influence competitiveness.

…The structure of a business plan?

The market opportunity is a chapter which emphasises the demand for the product or service in question. It is vital in assuring the reader that this business has the support and following required to be a success.

Competitors – it is a good idea to analyse the market and all those around you that are acting as a direct or indirect competitor. It is important that you also think about substitute product or services.

Marketing, Promotions and Communications. All of these channels should be mentioned in the business plan, stating exactly what the business intention happens to be.

…The structure of a business plan?

The operational chapter should include information relating to the trading of the business. This includes office hours, premises information and administrative matters.

A contingency plan tells the reader that even if things go wrong or certain mistakes occur, which they inevitably will do, the business has alternative options.

Financials – this section is a good point to close on and should generally include a cash flow forecast, profit and loss account and balance sheet.

Common mistakes

It is far too easy for the forecast to be unrealistic. A healthy dose of scepticism is important, whilst remaining positive.

The competition is one of the most important elements of the business plan and is arguably the most difficult to get right. Ensure that you do not underestimate those around you and think outside the box in terms of exactly who your competitors may be.

…Common mistakes Language and formatting. Many business plans are poorly written

and it is a great shame for a business plan to fall down in this respect. Always have friends, family or a colleague proof read the work and ensure that your plan is not taxed based your grip on the English Language.

Too detailed. Although the business plan should be thorough it is worthwhile considering that the reader may not be as technical as you are. Although it is important to provide lots of information just be wary and ensure that you simplify content. Remember that you can always go into specifics at a later stage.

…Common mistakes Every business plan should have a purpose. This is critical as it

dictates the shape and tailoring of the plan to ensure that the document best appeals to the reader. A business plan with the aim of gaining funding will be wholly different from a business plan for developmental purposes. One will signify the weakness and perhaps detrimental effects of not taking action. The other will paint the business in the most positive light and any weakness should be addressed but wrapped in have solid action points.

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