Business Plan Workbook

Writing a Business Plan

Business Plan Workbook

A Tool to Assist You in Designing Your Business Plan

Prepared by:

RMB Consulting

13 Charlesmount

Bangor

BT20 4NY

Tel: 07747 634186

e-mail:

INTRODUCTION

This booklet is designed to be used as a workbook. There is a two-page business plan overview, followed by workbook pages highlighting each section of the business plan. The intent of this booklet is to help you to collect all of the information you will need to create a final business plan.

BUSINESS PLANING-AN OVERVIEW

Introduction

The Business Plan provides a description of the product or services of the business, who it serves, details its competition and in addition, lays out its marketing strategy, and explains its financial operations. The Plan should provide the reader the ability to understand the specific industry your business is in and the details of your specific business operations.

Developing the Business Plan is a process which includes:

Outlining the general concept of your business offering(s)
Conducting research
Refining your ideas based on your research
Developing specific components of the plan

The Business Plan that you develop through this process:

Explains WHO specifically you will serve and WHAT products and/or services you will provide
Describes why your products and/or services are needed
Describes in detail how you business will operate

Your Business Plan has four functions:

It forces you to define the “mission” of your business, your business’s goals, and your action plan to meet these goals
It compels you to look at your business objectively to determine its feasibility
It communicates your business’s ideas to friends, family, partners, investors, bankers, supporters and others within your management team
It serves as an operating tool to help you run your business

The Body of the Business Plan

The Plan must be credible, clear and authoritative. The Plan should be 10-15 pages in length (excluding the introduction and anysupporting documents) and it should be typed single or double spaced) without grammatical or typographical errors.

Readers of your Business Plan may view mistakes or sloppy presentations as examples of poor business skills.

Be sure to write in the third person. Don’t say “I”, “me”, “we” or “our”, instead, say “Brooks Services”, “the owner” or “Jane Doe”. Be positive and write in the present tense. Don’t say, “I hope to…” instead, say “The school cares for 50-60 children between the ages of…”

The Sections of the Business Plan

The Executive Summary/Statement of Purpose
The Business Overview
The Industry & Marketplace Analysis
The Marketing Plan
The Operations Plan
The Management Plan
The Financial Plan
Supporting Documents

These sections are interrelated. The marketing section for instance, cannot exist without the financial section, and vice versa. This means that when you are writing the marketing section (how you will communicate about your business to the public, you must keep track of any financial implications (costs involved in communicating, for example: brochures, media etc.)

When presenting a Business Plan to a bank or investor, include a cover letter stating how much money you are requesting, the type of loan (equipment, line of credit, etc.), and a specific description of how you will use the money. It is important that you include financial spreadsheets showing your method of intended repayment. The Plan must be viable, and must satisfy the loan officer’s or investor’s most basic questions:

Does the Plan make sense?
Is there sufficient need for a business of this type in the location specified?
Are the financial projections healthy and realistic?
Are the management team experienced and capable of operating the business?
Will the bank get their money back or will an investor receive a healthy return on his/her investment?

Final thoughts on Creating a Business Plan

Simply stated….In developing a Business Plan, you are developing a “road map” for your business. You are defining WHERE you are going, and HOW you will get there.

EXECUTIVE SUMMARY

Provide a brief overview (highlight and summarise primary elements) of the business plan’s contents.

NOTES:

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BUSINESS OVERVIEW

Provide a history and description of the business
The type of business and sector it is in
The current legal structure
The Management structure
How the business is/will be funded
Location of the business
Size of the business: employee numbers; Turnover etc.
When your business will be open (days, hours)?

Mission Statement
Who are you and what do you do?
What products and/or services do you offer?
Who do you serve?

Research market feasibility
Is there a need for the products and/or services which you offer?
How much of a need is there and how much of it will you serve?

Competition
Who are your competition?
What products and/or services do they offer; what are their strengths and weaknesses?
Are they a threat to your business?

Industry trends
What does the industry itself look like at this time: is it stable or declining?

Potential market
Given what’s known about the above issues, what is the potential demand/need for you products and/or services?

NOTES:______

INDUSTRY & MARKETPLACE ANALYSIS

Industry Analysis

How do we define our industry?
How is the industry segmented?
What are current trends and important developments?
Who are the largest and most important players?
What problems is the industry experiencing?
What national and int’l events influence our industry?
What are growth forecasts?

NOTES:

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Marketplace Analysis

How do we define our marketplace?
How large is it and how fast is it growing?
How is our marketplace segmented?
What organisations currently service this market?
What trends are important in our marketplace?

NOTES

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Customer Analysis

Who are the traditional customers in this market?
How is the market segmented?
What motivates buying decisions?
What channels of distribution are used? What channels are being ignored
In what ways are customers dissatisfied with current offerings in the marketplace?
What customer needs are currently unmet by the market?
What emerging customer groups are being ignored?

NOTES:

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Competitor Analysis

Who are current sellers in the marketplace? How are their businesses: steady? increasing? decreasing?
What are the attributes and characteristics of these sellers and their products/services?
What is their size, location, target market, and other important characteristics?
For their products or services, identify price, quality, features, distribution, and other important attributes.
What problems and concerns do customers have with these sellers?

NOTES:

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MARKETING PLAN

Describe your services
What do you offer and to whom?
Do you offer any special services that may not be offered elsewhere?

Describe the target market for your offerings
Is the market static, declining or growing?
How will you attract, hold, increase your market?
How will you serve the market?

Identify your location
Where is your facility located?
Has is met local and national inspections and regulations?
What features about your site offer added value to potential customers?

Pricing strategies
How will prices be determined?
What specific pricing strategies have you considered? Retail cost and pricing; competitive positioning; pricing below/above competition etc?
Will late payments be permitted?
What payment methods will be acceptable?
Will you charge for special services?
Will there be different pricing policies for different customer segments?

Promotional strategies
How will you reach your customers?
What advertising methods will you use?

NOTES:

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OPERATIONS PLAN

Business Operations
How will you actually run your business?
What are your major business policies?
What is your schedule of operating activities and how will they give you a competitive advantage?

Suppliers
What equipment and materials do you need?
Where will they be obtained?
Provide breakdown costs by supplier

External Partners
Will a solicitor, accountant, or other specialists be needed?
Will you need to establish partnerships with external bodies such as banks, local authorities, employer’s organisation etc?

Technology needs
Do you need or will need any technology to help you, such as computers, telephone add-ons, etc?

Insurance
What types of insurance will you carry (liability, fire, theft, health, accident) and through whom?

Tax & bookkeeping system
What records do you need to maintain?
What system will you use?

Regulation, licensing, and/or government issues
What regulations must your business comply with?
What do you need to do to comply?

NOTES:______

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MANAGEMENT PLAN

Personnel/Management team
Who are they?
What are their qualifications?
What education have they had?
Are they competent, capable and experienced?

Benefits
What benefits are being offered to employees, if any, and how will they help you to attract and retain quality staff?

Employee requirements and job descriptions
What are your hiring practices?
What is your wage scale?
What are your staffing patterns?
What will specific employees be expected to do?

NOTES:

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FINANCIAL PLAN

Start-up costs
If applicable, what will you need to purchase to begin with?
What operating funds will be needed?
Where will this money be obtained?
How much, totally, is needed to successfully cover all start-up costs?

Cash –flow projection
Where will you income come from and where will it go?
Anticipate your income and expenses for a three-year period, month by month and by year

Income statement
Balance Sheet: assets, liabilities, net worth
Break even analysis
Revenue versus expenses: how much money do you need to break even?
Can you make a profit?

Financing Plan
Will you need to borrow money/ How much?
How will you use it and how will it be repaid?

Identify sources of funds
Determine how the business will be funded
Will you seek a bank loan, venture capital etc?
How much money can YOU provide?

NOTES:

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SUPPORTING DOCUMENTS

Examples, but not limited to, the following:

Start-up Budget
Balance Sheet (Projected if a new business)
Break even analysis
Income Projection Statement
Monthly Cash Flow Projections
Profit & Loss Projections
Questionnaire used in market survey, and list of people surveyed
Photographs of the business premises and operations
Contracts with suppliers, major customers
Business name registration
Insurance documents
Resumes of key personnel