FREE BUSINESS PLAN STRUCTURE
If you are considering starting up your own business it is vital that you begin the development of a comprehensive business plan. The following structure has been produced as an aid to assist you with this process.
BUSINESS PLAN TEMPLATE
In addition to this structure the Business Enterprise Centre have available a comprehensive business plan template.
The Template is available on CD-Rom at a cost of £15.
Key Benefits: • • •
The complete guide to writing an effective business plan Each section explained in an easy to follow easy to understand manner A comprehensive cashflow forecaster ‘Cashbuilder’
To obtain your copy of the Business Plan Template please make a cheque for £15 made payable to the ‘London Borough of Hammersmith & Fulham’ and send to the Business Enterprise Centre. Please ensure that you enclose you name and address when sending payment.
For further details please contact us on 020 8746 0355 or by email sbbec@lbhf.gov.uk
Below is a suggested structure which you may want to consider adopting:
Include a cover sheet to the business plan which contains the details of the company name and the owner’s details, addresses and contact numbers etc.
1. Executive summary
2. Background and business history; Personal history of directors Business history Business objectives
3. Services;
Description of the business' services Suppliers, contractors and sub-contractors
4. The Market and marketing;
The Market Market research Marketing strategy Competition SWOT analysis Pricing policy
5. Premises
6. Capital expenditure
7. Management and organisational structure
8. Business medium (e.g. legal structure, ltd comp, insurance, VAT etc.)
9. Financial;
Cash flow forecast for 1 year Forecast assumptions including sales forecast
10. Appendices
CV's of directors Marketing examples
The most important sections of a good business plan are:
1) The executive summary which should give the reader a feel for: i) the business historic, present and future, ii) those involved – what do they being to the party? and, iii) financial highlights. This section should be written after the rest of the plan has been developed and should draw together key sections to give the reader an overview of the business.
2) Marketing and market research - in-depth quantitive and qualitative analysis which should include both primary and secondary data (also look at MINTEL Market Reports available from the Business Enterprise Centre or for special reports – the British Library). The ‘Mintel’ reports will give you a broader industry analysis and the primary research will result from your own research.
3) The financial section - it seems pointless to try and predict any further than 1 year. But a 1 year cash flow with a 'what if' scenario (e.g. optimistic and pessimistic projections) would be well received by a loan panel together with detailed assumptions of what you have based the projections on.
In the Executive summary and Business history sections, you should talk about your codirectors experience, if any, of self-employment, and, how you have arrived at the business idea from what you were doing previously. Important also to illustrate your experience/exposure related to your industry.
Attached is a cash flow template which gives you an idea of how to set out and display your cashflow forecast.
CASHFLOW FORECAST FOR THE PERIOD…………… TO…………… MONTHS:INCOME Cash Sales(excl VAT) From Debtors (excl VAT) Loans & Grants Own Capital VAT on Sales VAT refunds TOTAL INCOME EXPENDITURE Purchases Staff Wages Salaries Drawings PAYE/NI/Tax payments Rent & Rates Heat, Light, Power Telephone Postage Stationery Marketing Travel/Transport Insurance Repairs/renewals Legal/Accountancy Bank charges/interest Loan repayments Hire Purchase/Leasing Other expenses:(A) 1 2 3 4
FOR 5 6 7 8 9 10 11 12 TOTAL
VAT payments Capital expenditure TOTAL EXPENDITURE (B) Change in Month A-B Opening Bank Balance Closing Bank Balance