The Business Plan is crucial to any individual who embarks upon a business venture whether it is a new start or an existing business.
The document should enable the reader to identify all the factors that will affect the business and hence determine its chances of success.
It should answer all the questions an investor might conceivably ask and should not hide any deficiencies. It should identify them and indicate how they will be dealt with. Management should seek to demonstrate in the Business Plan its ability to manage.
Two questions any reader will ask are and expect the Business Plan to address are; how great is the market opportunity for the product/service and how successful and competent is the management team?
The plan should contain the following information and its format should be structured and logical, for example:
- Executive Summary Why this is the right time for the business to grow, how do you plan to do it and the investment you need.
- Contents List the main sections in the plan.
- Company Overview What your company has achieved so far and the unique selling points that have underpinned its success.
- The Market How your market is growing and the factors that present new opportunities in it. How your firm plans to change to take advantage of these and overtake competitors. Where the new customers are coming from and what they’re likely to spend. The opportunities and risks (threats) to growth.
- Development The plans for growing the company and the business thinking behind them. The new people, premises and equipment you may need. Where they come from and how you will manage the growth.
- Management How the management team is developing its expertise to manage a larger business. Which new team members you plan to recruit. Can it demonstrate it is adequately resourced to control the business growth it is planning?
- Funds Required The funding required to grow the business. How the money will be used and repaid including ‘exit strategies’ for any private investors or venture capitalists.
- Financial Data Monthly cost and revenue figures for two years with detailed justification and assumptions. Quarterly forecasts thereafter up to and including the exit point for the investor. Cash-flow forecast based on your costs and revenues. Balance sheet projections on an annual basis.
- Appendices Relevant background information such as existing products and services, brief history of the firm, and details of key customers.
If you need help creating a compelling Business Plan for your company AMB Associates Limited has over 30 years experience in creating these for businesses ranging from SME’s through to blue-chip global multinationals.