Business Plans

How do you make your plans?

What do you consider?

Objectives

To know what a Business Plan is and why businesses use them

To know the different components of a Business Plan

To be able to develop your own Business Plan

What is a Business Plan?

A business plan is a detailed statement setting out aims and

proposals for a business scheme and how it will achieve them

Why Do a Business Plan?

To make sure you’ve thought through all aspects of the business idea to avoid failure

To show the bank manager or prospective partners to help raise finance

To discuss with business advisors

Secret to Success

Stop and Think

Eurotunnel operates the Channel Tunnel between Kent and northern France. The company borrowed heavily to build the tunnel. In its early planning, Eurotunnel forecast that 17 million passengers would use the Channel Tunnel in 2003. In fact, the actual figure was 7 million. Why do you think this forecast was wrong? Why does it matter?

What Should it Include?

Summary of the business idea The aims & objectives of the business Its legal identity and info about managers Market research data and sales forecasts,

SWOT Analysis Details of resources required: premises,

equipment, staff Sources of finance Financial forecasts for the first year to

include: budgets, break-even & cash flow forecasts

Where Can a Business Get Advice From?

Professional Advisers – accountants and solicitors

Business Consultants – see www.businesslink.gov.uk

EBPs – Enterprise & Business Partnerships Department of Trade & Industry (DTI) – see

www.dti.gov.uk Chamber of Commerce Trade Associations The Prince’s Trust and Shell LiveWIRE

Where Can a Business Get Advice From?

Accountants Friends and Family Banks also provide advice

E.g. Barclays