Many potential start-up businesses are daunted by the prospect of writing a business plan. But it is not a difficult process — and a good business plan focuses the mind as well as helping to secure finance and support.
The business plan will clarify your business idea and define your long-term objectives. It provides a blueprint for running the business and a series of benchmarks to check your progress against. It is also vital for convincing your bank — and possibly key customers and suppliers — to support you.
This briefing explains:
• What information to include.
• How to present your financial forecasts.
1 Executive summary
The executive summary outlines your business proposal. Although it is the last section to be written, it goes on the first page of the business plan. It will be read by people unfamiliar with your business, so avoid jargon.
1.1 The executive summary highlights the most important points and should sum up six areas.
• Your product or service and its advantages.
• Your opportunity in the market.
• Your management team.
• Your track record to date.
• Financial projections.
• Funding requirements and expected returns.
1.2 When deciding whether to back a start-up, bank managers and investors often make provisional judgements based on the executive summary.
• The main body of the business plan (see 2–9) is then read to confirm the initial decision. The appendices at the back of the plan (see 10) carry detailed information to support the main text.
2 The business
2.1 Explain the background to your business idea, including:
• The length of time you have been developing the business idea in its present form.
• Work carried out to date.
• Any related experience you have.
• The proposed ownership structure of the business.
2.2 Explain, in plain English, what your product or service is. Make it clear how:
• it will stand out as