1 Ray Dale Eastbourne & District Enterprise Agency Ltd (more about services & other help later)

2 Business Planning

3 Do you need a business plan – Why? Do you need a business plan – Why? What information is required? What information is required? Who can help you? Who can help you?

4 Why have a business plan? Starting a journey Starting a journey – Where you are now – Where you want to be – The steps needed to get there Objectives / Goals Objectives / Goals Would you go on a long journey without making some plans? Would you go on a long journey without making some plans?

5 Why have a business plan? Convince yourself the idea is real Convince yourself the idea is real / has a good chance of success / has a good chance of success Convince others – staff, investors, funders, Convince others – staff, investors, funders, suppliers, customers suppliers, customers Clearer focus on product / service / vision Clearer focus on product / service / vision being sold being sold Forces you to deal with all aspects of the business Forces you to deal with all aspects of the business Reminds you why you reached certain decisions, and acts as a measure of progress / incentive to continue Reminds you why you reached certain decisions, and acts as a measure of progress / incentive to continue

6 Why have a business plan? Improve your chances of success Improve your chances of success

7 What information is required? Narrative & Financials

8 What information is required? Narrative Why do you want to run your own business? Why do you want to run your own business? Ultimate aims Ultimate aims – short / medium / long term goals to achieve Current skills / opportunities for improvement Current skills / opportunities for improvement Resources / equipment required Resources / equipment required Who are your customers? How many do you need? Who are your customers? How many do you need? Competition – SWOT – USP? Competition – SWOT – USP? How will you market your product / service? How will you market your product / service? Importance of market research Importance of market research

9 What information is required? Financials Personal Survival Budget – How much? Personal Survival Budget – How much? Start up costs Start up costs Running cost – overheads (fixed) Running cost – overheads (fixed) Sales forecast Sales forecast Cash flow forecast Cash flow forecast Profit / Loss statement Profit / Loss statement

10 Financials - Tips Don’t over estimate sales Don’t over estimate sales Don’t under estimate costs Don’t under estimate costs Charles Dickens - Charles Dickens - "Annual income twenty pounds, annual expenditure nineteen pounds & "Annual income twenty pounds, annual expenditure nineteen pounds & six, result happiness.” six, result happiness.” “Annual income twenty pounds, annual expenditure twenty pounds “Annual income twenty pounds, annual expenditure twenty pounds and six, result misery." and six, result misery."

11 Sales Forecasting Not Mystic Meg Not Mystic Meg Best estimate based on market research Best estimate based on market research – Potential customers / how many can you handle? – Competition – Compare estimate to actual regularly Product / service rate Product / service rate – Hourly / daily / weekly / project rate

12 Sales Forecast - examples Daily rate (you) = £100 Daily rate (you) = £100 – Estimate 2 days pw for first 6 months – Estimate 4 days pw for next 6 months Sales for year = 24 £200 Sales for year = 24 £ £ £400 Total = £14400 per year Total = £14400 per year Rate per customer per day = £50 Rate per customer per day = £50 – Estimate Number of customers per day = 4 – Working 3 days pw for 48 weeks = 576 customers per year – Sales for year = 576 x £50 = £28800 per year NB – Number of days / weeks able / willing to work. Seasonality NB – Number of days / weeks able / willing to work. Seasonality

13 Business Plan Quite a lot to it Quite a lot to it Don’t be afraid of it Don’t be afraid of it Don’t expect to complete it in an afternoon Don’t expect to complete it in an afternoon Benchmark with other similar businesses Benchmark with other similar businesses Don’t put it in a drawer and forget about it Don’t put it in a drawer and forget about it Review regularly / change as necessary Review regularly / change as necessary

14 Who can help? Bank manager / accountant Bank manager / accountant Investors / funders Investors / funders Mentor / similar business Mentor / similar business EDEAL – 2 hours FOC – EDEAL – 2 hours FOC – Phone Phone Business Link – website, telephone advice Business Link – website, telephone advice workshops – workshops – Phone Phone

15 Business Planning Do you need a business plan – Why? Do you need a business plan – Why? What information is required? What information is required? Who can help you? Who can help you?

16 Any Questions?