Business Year Starter

Business planning Enterprise and Entreprenure

A business plan Sets out the business idea Informs what the business does What it intends to do How the business finances its activities Is part of the capital raising process Informs potential lenders and investors of the above points What it will do with the capital invested The level of returns expected from money invested How it intends to repay borrowed money To monitor performance Sets out objectives of the business Allows the business to check that the objectives have been met Indicates when and where action should be taken

Contents of a business plan Business information and Statement of purpose Marketing plan and market analysis Financial analysis Operations and production plan Concluding statement

Business information and statement of purpose Name of company Ownership of the business and legal structure CVs of owners includes skills and experience the owners bring to the business and management responsibilities Location Objectives of the business

Marketing plan Important part of any business plan should be based on both field and desk research. Market research identifies, Possible size of the market Needs of the customers Level of competition

Operations plan Human resource plan Detail of where the business will be loacted Production methods and equipment needed Cost of production Suppliers Human resource plan Number of employees and the skills, experience and qualifications they require any management team required

Financial plan Sales forecast indicating potential revenues Cash flow forecast for the first 12 months Profit and loss account and balance forecast for the end of the first year Break even analysis Start up capital as well as any borrowing

Drawbacks of a business plan Cost of market research -time and money How do you predict where your money will come from How reliable is the data An inaccurate business plan with unachievable objectives can give false hope Entrepreneure has little knowledge of market and business

Support Business Wales Guide to Business Plans https://businesswales.gov.wales/lifesciences/starting-business/starting-business- 0/preparing-business-plan Write a business plan https://www.gov.uk/write-business-plan

Test your knowledge

Why is it important to consider ‘the audience’ when preparing a business plan?