Steps two to starting a business
Developing a Business Plan
Most people starting a new
business will need to develop
a formal business plan in
order to access finance. But
actually it is a very good
discipline in itself to have an
up to date business plan,
whether you are starting a business, or have been
trading a while. If you use a good template it will force
you to go through the whole rationale for your business,
look at every aspect of it, and examine or re-examine
it in terms of likely profitability -which for most people
is the objective.
Once you have a plan, it is relatively simple, and a
good discipline, to review each year and check you are
still on track. Your management team can review short,
medium and long term objectives. You will also be
asked to submit a business plan regularly if you have
successfully accessed funding from a bank or investors.
When banks and other financial institutions are
considering a loan application, they will be looking for
businesses that have good cash flow management, a
strong balance sheet, a sound business plan, a well-
balanced management team, a good business record,
and who are looking to develop and grow. A business
plan is a key first step.
Also if you make an application for a grant or any
other State Aid, they will inevitably ask to see your
business plan. It is always easier to update an existing
plan that to start from scratch.
As always there are several different formats, none of
which is right or wrong. A good small business plan
defines exactly what you want to achieve and how you
plan to achieve it.
As a minimum your small business plan should clearly
state:
What your business will do
1.The products or services it will provide
2.How customers will access your products or services
( e.g. online, by phone, in a high street shop)
3.Your approach to pricing
You may also consider including the mission and
objectives of a business, development plan, market
strategies, competitive analysis, operations and
management structure, employee need and financial
details.
Developing a Business Plan
Most people starting a new
business will need to develop
a formal business plan in
order to access finance. But
actually it is a very good
discipline in itself to have an
up to date business plan,
whether you are starting a business, or have been
trading a while. If you use a good template it will force
you to go through the whole rationale for your business,
look at every aspect of it, and examine or re-examine
it in terms of likely profitability -which for most people
is the objective.
Once you have a plan, it is relatively simple, and a
good discipline, to review each year and check you are
still on track. Your management team can review short,
medium and long term objectives. You will also be
asked to submit a business plan regularly if you have
successfully accessed funding from a bank or investors.
When banks and other financial institutions are
considering a loan application, they will be looking for
businesses that have good cash flow management, a
strong balance sheet, a sound business plan, a well-
balanced management team, a good business record,
and who are looking to develop and grow. A business
plan is a key first step.
Also if you make an application for a grant or any
other State Aid, they will inevitably ask to see your
business plan. It is always easier to update an existing
plan that to start from scratch.
As always there are several different formats, none of
which is right or wrong. A good small business plan
defines exactly what you want to achieve and how you
plan to achieve it.
As a minimum your small business plan should clearly
state:
What your business will do
1.The products or services it will provide
2.How customers will access your products or services
( e.g. online, by phone, in a high street shop)
3.Your approach to pricing
You may also consider including the mission and
objectives of a business, development plan, market
strategies, competitive analysis, operations and
management structure, employee need and financial
details.
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