Once you’ve completed the feasibility study of your new business you’re ready to construct your business plan.
Your business plan is an essential part of your business start up requirements. It let’s you focus on where you want your business to go and gives you the directions to get there. Its essentially a way to achieve your business goals.
The plan is also a guide to financiers who are interested in lending you money for your business.
There are no hard and fast rules about what a business plan must cover but here are basic elements you should include
- executive summary – a one-page overview written after the business plan is finished
- introduction – explains the purpose and objectives of going into business. It should include the following areas.Mission statement
Name address and contact details
Description of business activity
Licences, permits and registrations
- marketing analysis – looks at the industry you are entering and how you fit in and your market strategyMarket and situation analysis
Market segmentation and customer analysis
Objectives and goals
Budgets and controls
- operational plan – how you’ll set up the business, i.e. structure, location, regulationsLocation and premises
Permits and licences
Plant and equipment
- management plan – how you’ll manage your business
- financial plan – How you will make the business viable and in what time frameFinancial objectives
Sales forecasts, debtor collections and payments to creditors forecasts
Income statement and balance sheet forecasts
You can find a business plan template here