Preparing a Business Plan 1

Four 1 Day Workshops + Follow Up Clinic for Business Plan Review Schedule Four 1 Day Workshops + Follow Up Clinic for Business Plan Review Module 1 Introduction - Start Your Own Business and Personal Assessment Module 2 Ideas Generation and Researching the Market Module 3 Marketing the Small Business Module 4 Preparing a Business Plan Module 5 Legal Issues for Start Ups and Managing People Module 6 Sales Module 7 Bookkeeping and Records Management Module 8 Financial Management 2

What we will consider Introduction to the Business Plan - Reminder The purpose of a Business Plan Special features of the Home Based Business Plan Factors to consider Contents of Business Plan Sources of Assistance Website resources

Reality Check Your Business Plan must be realistic You must be satisfied that it is a realistic plan for your business, given the resources at your disposal in terms of finance and skills It must be convince third parties (e.g. lenders, investors) that it is a realistic and viable plan It should show scope for business growth It must be intelligible, clear and well presented

How much money do you need? Reality Check When in business, it is up to you and nobody else to generate your income 5

The Survival Check Food Heat Light Home maintenance/repairs Shoes Car loan Mortgage/Rent Motor Insurance Road Tax Home Insurance TV Licence Food Heat Light Home maintenance/repairs Shoes Clothes ‘Phone School books Doctor Dentist Toothpaste Shampoo Cleaning materials Petrol/Diesel Hairdresser Holidays Hobbies Pets Vets Entertainment Presents

A business plan is a document which Bringing it all together A business plan is a document which describes a business and its activities – including finances - over a given period of time.

Assess and Plan – The Business Plan A road map for your business “An intelligent plan is the first step to success. The person who plans knows where he is going, knows what progress he is making and has a pretty good idea of when he will arrive” Basil S Walsh

The Road Map – Choices to be Made 3 hrs 10 mins; €40.18; 269.99km 3 hrs 34 mins; €36.95; 248.27km

Business Planning Know where your position is Know where you want to get to The more precisely you know where you want to get to, the better you’ll be able to plan External factors: Other traffic on the road? Diversions?

Specific Measurable Achievable Relevant Time bound Does it pass the SMART test? Specific Measurable Achievable Relevant Time bound

The Business Plan Don’t forget the Five Pillars … Marketing Finance Our Product/Service People Operations The Business Plan

Does it meet your objectives? What do you want to achieve? Short – Medium – Long term …. 13

The importance of Business Planning Provides direction and focus Identifies aims and objectives Sets targets Identifies a plan of action Establishes viability Identifies potential problems Provides a basis for monitoring and control

The importance of Business Planning

The home based business - Challenges Remember……. Invisibility And Credibility These are major challenges Business address?

Very important -Finance Costs Pricing Break even Funding Financial projections Cash flow Financial management systems e.g. bookkeeping

Raise finance Functions of the Business Plan Develop or crystallise a business idea Assess viability Anticipate potential problems Enhance chances of success Management and planning tool Provide guidance and direction Monitor and evaluate Raise finance

Elements of Business Plan Executive summary Introduction/background Products/services Marketing Operations People Finance Appendices

Preparing the Business Plan Use a cover and contents page Divide into different sections and number pages Keep information concise and easy to read Use clear headings and a plain font Use a clear structure and format Break up text into small paragraphs Check your spelling, grammar and accuracy Use images and graphics where appropriate Include literature (e.g. brochure if available) Write in a positive and authoritative tone

Writing the Business Plan – Don’ts Do not make claims you can’t back up Do not waffle Do not assume the reader knows the industry Do not leave out relevant facts and figures Do not overload on information Do not oversimplify Do not struggle with trying to make your plan fit into a generic template

You must…. Know your own Business Plan and Know your figures inside out! Don’t be caught on the hop with basics!

Sources of Support Local Enterprise Office or similar Business adviser/mentor/consultant Mentoring available from Local Enterprise Office Accountant Templates Business planning books Business planning software Internet Banks’ Websites e.g. http://www.bankofireland.ie/html/gws/business/start_your_own_business/business_start_up_guides/index.html

What we considered in Module 4 Introduction to the Business Plan The purpose of a Business Plan Special features of the Home Based Business Plan Factors to consider Contents of Business Plan Sources of Assistance Website resources

Four 1 Day Workshops + Follow Up Clinic for Business Plan Review Schedule Four 1 Day Workshops + Follow Up Clinic for Business Plan Review Module 1 Introduction - Start Your Own Business and Personal Assessment Module 2 Ideas Generation and Researching the Market Module 3 Marketing the Small Business Module 4 Preparing a Business Plan Module 5 Legal Issues for Start Ups and Managing People Module 6 Sales Module 7 Bookkeeping and Records Management Module 8 Financial Management