1. Business Year Starter

2. Business planning Enterprise and Entreprenure

3. 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

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. Support Business Wales Guide to Business Plans
0/preparing-business-plan
Write a business plan

11. Test your knowledge

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