Business Plan template Your business plan should contain the following headings: Executive Summary Promoters /Management (legal form) Product /Service (patents, etc) Target Market Marketing Operations (including Design and Development) Finance – Capital requirements – Key ratios /sensitivity analysis /break-even – P&L a/c highlights – Balance Sheet highlights – Cash Flow highlights Appendices – Financial Accounts (3 years) • P&L a/cs • Balance Sheet • Cash Flow – CVs – Technical drawings – Operation layout Notes on Executive Summary • Elevator pitch • Average reading time for 1st read is 30 seconds • Key highlights to main body of plan • Maximum of two pages • Bullet point format • Summary is selling your plan Notes on Promoters /Management • Introduction • Background to business idea • Business objectives • Founders (relevant experience) • Ownership • Legal structure • Organisational structure • Key personnel /employee levels • Roles and responsibilities • Key advisors • Mission Statement Notes on Product /Service • Core Product o Function o Features o Packaging o Design • Services o Sales service o Delivery o Availability o Advice o Finance o Guarantees /warranties o Add-ons • Intangibles o Brand name o Corporate image o Reputation o Value perceptions o Quality perceptions • Intellectual Property (trade marks, copyrights, patents, registered design, licensing Notes on Marketing /Target Market • Market information o Size of the market o Recent trends o Key environmental factors o Critical success factors • Profile key competitors o strengths /weaknesses o Unique Selling Point o turnover o employees o pricing • Profile customer segments • Detail your market research • Profile target market (particularly first customers) • What is your UNIQUE Selling Point (USP)? Notes on Marketing /Price • Cost plus margin • Demand • Discounts • Payment terms • Lifetime benefits • Pricing Strategies o Mark-Up Pricing o Target Return Pricing o Perceived Value Pricing o Value Pricing o Going Rate Pricing o Sealed Bid Pricing o Psychological Pricing o Promotional Pricing Notes on Marketing /Promotion • Central message /theme (key objective) • Branding yourself and your service • Reputation • Publicity • Advertising • Promotions • Direct marketing • One-to-one selling • Telemarketing /internet • Trade fairs /exhibitions • TV • Radio • Newspapers • Magazines • Directories /yearbooks • Cinema • Outdoor media • Brochures, literature, websites, business cards Notes on Marketing /Distribution • Customer requirements • Organisational resources • Channel intermediaries o Agent o Distributor o Wholesaler o Retailer • Physical Distribution o Packaging o Stock-holding o Transportation • Push /Pull methods • Office versus service location • Accessibility of product /service • Physical surroundings • Competitors’ strategies Notes on Operations • Geographical Location • Office hours • Facilities • Outsourcing vs. in-house • Regulatory Issues • Manufacturing process • Operating Cycle • Operations layout • Machine requirements • Use of technology • Changes in product mix • Labour flexibility • Quality assurance • Labour skills /training • Health and safety procedures • Order processing • Production planning • Suppliers • Quality of materials /components • Stock control • Materials handling • Research and development Notes on Finance • Capital requirements – Founders equity – Investor equity – Debt finance – Grant aid • Key ratios /sensitivity analysis • Expected Gross and Operating Margins • Profit potential • Fixed and variable costs • Months to breakeven • Months to Cash Flow Positive • P&L a/c highlights • Balance Sheet highlights • Cash Flow highlights • Investors – How much money do you want? – Equity stake /ownership – Expected return on investment – Timing – Exit strategy – Profitability – Business liquidity/venture feasibility – Uncontrollable risk protection • Lenders – Security – Ability to repay loan – Collateral – Schedule of payments – Owners’ equity – Credit history Notes on Appendices – Financial Accounts (3 years) – P&L a/cs – Balance Sheet – Cash Flow • CVs • Technical drawings • Operation layout Key considerations: • Quality surpasses quantity • Executive summary is critical • First impressions are important • Be realistic • Be specific and accurate • Be brief • Use positive language • Good layout • Clear focus • SWOT analysis Failings of a Business plan • Bad financials • Poorly defined target market • Poorly presented /structured • Too many pages • Over emphasis on presenter’s qualifications • Too optimistic • Underestimate risk • Sell too hard • Spelling /grammatical mistakes • Page numbering • Use of jargon • Cross referencing