Thursday 1 August 2013

Writing a business plan for a start-up

Q: I’m writing a business plan for my start up, what should I include?

Start by thinking about who is going to be looking at the plan and what they will want to know and keep this in mind when writing it. All business plans will look a bit different but the general structure should include:


·         Intro and contents
·         Executive summary (you write this last!)
·         The business concept in a nutshell
·         What type of business it is, e.g. sole trader, partnership, limited company
·         State the business objectives, e.g. to deliver bespoke photo frames at affordable prices
·         Summarise the market and your position in it. Include external market research and statistics or commentary supporting your argument to give a potential investor reassurance.
·         Operational information: outline how the business will work, include details of marketing activity, channels of distribution and key processes – such as on line sales systems.
·         Organisational information – outline the team and their skills
·         Financials – the essentials are a profit and loss (income and expenses), a balance sheet (list of all your assets and liabilities) and a cash flow showing when cash comes in and when it goes out, which will help identify any periods where extra support or funding is needed. If you need funding: state how much, what it is for, what the projected return is and when this will be achieved. Break-even points are often helpful to establish how much you need to deliver/sell to turn a profit.
·         List all assumptions used. Investors like sensitivity or scenario planning i.e. if sales are lower than expected by 15 per cent or costs of delivery increase. Include a risk analysis.

Most importantly - be realistic!

Think outside the box, it doesn't have to be a written report; it may be easier or more relevant to make a video or use PowerPoint.

Business plans can be dry reading, so think how yours can be different to capture interest. Talk to Ward Williams if you need help with this. http://www.wardwilliams.co.uk

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