Outline Business Plan
Name: Name of Business:
…………………………. ................. …………………………. ................. .............. Form of Trading: ................. …………………………. ................. (E.g. Sole Trader, ................. Partnership, Limited Company) . Home Address: Business Address: ................. …………………………………………… ............. …………………………………………… ………………………………… ………………………………… ................. ................. ................. ..... Postcode: Postcode: ……….........
Telephone: ………………
…................
Telephone: ………………
Email:
1. What will your business do?
2. Will you be signing any form of franchise, distributorships, agency, license or commission agreement * with another business? Yes No If Yes: Will you have full control Yes No over your business? Will you be free to choose all of your customers? Yes Yes Yes Yes No No No No
Will you be free to choose all of your suppliers?
Will you set your own selling prices?
If you business is successful, will you be free to sell the business in total?
*You are advised to consult a solicitor before signing any such agreement 3. What would you like to achieve in the first year of trading? Do you know your monthly survival income requirement?
4. What is your long-term aim?
PERSONAL DETAILS 5. Give brief details of your personal and business background (e.g. qualifications, skills, experience or training)
6. What support do you have for your business if you fall ill or are injured?
7. Give details of other Partners or Co-Directors who will be involved in the business Name(s) Address Postcode Telephone Role in Business
YOUR SUPPLIERS 8. Who will be your major supplier(s)? What are their terms and conditions for business? What are your terms and conditions?
YOUR MARKET 9. What research have you done? (Attach back up information if applicable.)
10. What opportunities and threats is the market presenting?
11.
Who would buy from you? Describe your typical customer.
12. Is your business or market seasonal, if so, what will you do in the ‘off’ season?
13. What will your customers want or expect from you and why will they need what you offer?
14. How will you promote your product or service? How much will it cost to promote and sell?
15. Who will your competitors be? What are their strengths and weaknesses? What makes you different from your competitors?
16.
How will you sell to your customers?
FINANCIAL PROJECTIONS 17. What are your SALES target for the first 12 months? Please fill in the sales forecast below showing the amount you expect to take from sales each month for the first year of trading. MONTH SALES (£’s) 18. Calculate your Gross Profit (A) Projected Sales (17) LESS Direct Costs* Purchases £ Labour Costs £ Total Direct Costs = Gross Profit (A) £ £ £ 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL
*Direct costs are the cost of goods sold and include costs to purchase raw materials, work carried out by subcontractors, and wages of production workers. Wages and salaries of other (non productive) employees should be included as overheads in Section 20 below because they are fixed costs incurred irrespective of whether or not goods are sold. 19. Calculate your Gross Profit Margin (B) Gross Profit (A) £
Divided by Sales Target £ (From 17)
x 100
% (B)
20. Calculate your Overheads for the Year Business Property: Rent and Council Tax or equivalent. Business Property: Heat and Power (e.g. Electricity) ** Depreciation Employees Wages and NI Contributions Finance Charges, Bank Charges and Interest Insurance Costs Motor Expenses (Tax, Fuel, Maintenance) Other Traveling Expenses Post and Carriage Printing and Stationery Professional Fees – e.g. Accountant and Solicitor Repairs and Renewals Telephone Advertising Other Payments TOTAL (C) ** The cost of buying things to keep like plant, vehicles and tools, is not a continuous business expense and should not be included. The value that these items lose each year is a valid business expense i.e. depreciation.
£’s
21.
Calculate the Annual Turnover required to Breakeven
Overheads £ (C) Divided by Gross Profit Margin (B) (%)
x 100
£
(D)
Calculate the Monthly Turnover required to Breakeven Breakeven £ Sales (D) Divided by 12 (Months)
=
£
(E)
22.
Calculate your Estimated Profit Sales £ Target (17) LESS Breakeven Sale(D)
£
__________
£ X (%) Gross Profit Margin (B)
Estimated Profit £ Does this Estimated Profit equal or exceed your Survival Income? Yes No
PREMISES, EQUIPMENT AND VEHICLES 23. Please list the premises, equipment and vehicles you will need for your business. Tick those that you already have and indicate the approximate cost of those items to be purchased. List of Equipment Approximate Cost £ £ £ £ £ £ £ £ £ TOTAL £
MONEY 24. How much will it cost to set up your business? Where will you get the money to start your business?
25. What legal issues/regulations and insurance requirements influence your business?
PROFESSIONAL ADVICE 26. Have you had any professional advice about your business proposal? Yes No If ‘Yes’ please say from whom: Notes to your plan.