The Business Plan.

What is a business plan? Copy this - ‘A document based on research which identifies a new business proposal and what needs to be done to establish it’

What does it include Most banks provide blank forms – see your example sheet but there are some key sections that are included in most plans? Basic information – name, business address Description, aims and objectives of business

Main parts of a business plan Marketing plan – explanation of product or service, prices, promotion, methods of selling, research on market and competitors Human resource plan – workers needed, training needed, wage bill Production plan – how to make product or deliver service effectively. How to ensure quality Finance – sources of finance, accounts – profit and loss predictions, value of business assets, break even predictions.

Who would use the plan? Who?Why? Bank manager Potential shareholder or investor Owner of business

Who would use the plan ? Who?Why? Bank managerReassure them that business worth lending money to Potential shareholder or investor Reassure them that a sound investment and they will make a return Owner of business Tests viability of business idea Helps to research market Helps identify start up resources and equipment needed Outlines key objectives Outlines ways of making and selling

Benefits of Producing a Plan Helps to convince banks and potential investors Saves you wasting time on an unworkable idea Helps you understand market and rivals so can be more competitive e.g. what pricing to use? Gives you a checklist of what you need to set up Outlines objectives so you can measure success of business later on Break – even – gives you a target to help you make a profit Helps you to set up business and identify what you need to do e.g. what equipment is needed? Write these up in your own / words / order on separate piece of lined paper.