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
Business objectives
Name address and contact details
Description of business activity
Competitive advantage
Owner profile
Major clients
Licences, permits and registrations
Business advisors
Current performance
- marketing analysis – looks at the industry you are entering and how you fit in and your market strategyMarket and situation analysis
Marketing plan
Market segmentation and customer analysis
Objectives and goals
Strategies
Budgets and controls
- operational plan – how you’ll set up the business, i.e. structure, location, regulationsLocation and premises
Business structure
Permits and licences
Plant and equipment
Inventory/stock
Staff requirements
Environmental strategy
- management plan – how you’ll manage your business
- financial plan – How you will make the business viable and in what time frameFinancial objectives
Capital structures
Sales forecasts, debtor collections and payments to creditors forecasts
Cashflow forecasts
Income statement and balance sheet forecasts
Breakeven analysis
You can find a business plan template here
