 |
|
 |
Home |
 |
 |
 |
Entrepreneurs |
 |
|
|
|
|
 |
Investors |
|
|
 |
Blog |
|
|
 |
Intermediaries |
|
|
 |
Testimonials |
|
|
 |
In The Press |
|
|
|
 |
|
 |
|
 |
What our members have to say...
 |
"DONE DEAL - Software start-up Stratum recently raised €240,000 through our Irish network. Click the logo on the left to read an article from the Irish Post about Stratum's fund raise."
|
|
Greg Kelly - Managing Director of www.stratum.ie |
|
|
|
|
|
Writing a business plan
|
|
The prospect of writing a business plan for a new start-up business or a young / small business that is looking to expand is something that sounds daunting. The good news is, it doesn't have to be a struggle and actually, the best business plans are not complicated.
A business plan will put forward the idea or service proposed alongside a set of objectives. It is a document that provides a blueprint for running the business but also helps to convince lenders, banks and investors about the viability of the idea.
At the start of every business plan is the Executive Summary. Technical jargon is not recommended here as this is the first thing that an unfamiliar but interested party reads. Keep it simple but focused on the most important parts of the business. Some of the key things to include are a summary of products or service, their unique selling point (USPs), the opportunities in the market, who is behind the business, financial projections and funding requirements along with projected returns.
From this, the plan can go on to discuss the main topics from the Executive Summary in further detail and expand upon key areas.
The Business
In this section it is important to give a full background to the business whether it is just starting or if it is already established but seeking an investment to help it move forwards. This should include how long the idea has been in the making, any success to date and what has happened so far with the product or service and what the ownership structure is likely to be. It is also the opportunity to explain clearly and concisely exactly what the product or service is, why it is different or unique and what a potential customer will gain from it. It's also important to put forward any weaknesses or issues that the business might have.
Markets and competitors
Focusing on the segments of the market that the business is aiming for is vital here by looking at whether or not the market is growing or shrinking and also if there any associated trends. Additionally this section should be used to identify competing products and their advantages and disadvantages.
Sales and marketing
This section highlights how the product or service will be positioned and how price, quality and response time compares with competitors. It also is an opportunity to show how the business will (or does) sell to its customers and whether or not this will be by phone, through the web, through an agent or face-to-face. In this part of the business plan it is important to outline the communications plan for the product; will it use advertising, PR, direct mail, social media or email marketing to promote it?
Management
To help inspire prospective investors or lenders, this section can be used to show the strength of the proposed team. By defining each role and the personnel filling it, this section gives the opportunity to demonstrate to prospective stakeholders the background and experience of each team member and give added confidence.
Operations
Simply, this section of the business plan should give the operational logistics. The location and the facilities needed to start the business, or that are currently in place at the business, should be identified and a list of the employee roles and skills that will be needed. Finally, it is important to state how suppliers will be or are currently selected.
Financial forecasts
Realistic sales forecasts are needed here and should be broken down into as many different components as necessary. The cashflow forecast will show how much money is expected to be flowing in and out of the bank account and that there will be enough to survive. A profit and loss (P&L) forecast gives an indication of how the business will aim to move forwards. For a business that is established but seeking new funding, historic reports should be included here.
Financial requirements
This is the part of the business plan that shows how much finance is required, when it will be needed by and what form it should be delivered in. It is the perfect time to state what the finance will be used for and if the idea or service can afford to operate and generate profit.
Assessing the risks
Here it is important to isolate areas that could go wrong and what the action would be if the worst happened. A selection of 'what-if' scenarios will help to show potential investors that situations have been thought through carefully and that solutions have been sought.
Appendices
Finally, everything that needs more detail, such as financial forecasts broken down to monthly levels, should be included here. Any other relevant information can be supplied here too such as research data, names of target customers or CVs of key personnel.
In summary, keeping the business plan short and to the point is vital. Details are important but often get neglected by the person reading so it is essential to ensure attention is kept through shorter and snappier content. The final piece of advice is to make it professional looking. Simple things such as a cover and a contents page will go a long way to helping with this.
|
|
|
|
|
