Having a business idea is one of the first steps but the main driving force behind the business is
you, your skills and your character. Think about why you are going into business, what do you want out
of it, how much money you’ll need, the hours you want to work, the kind of work you can do. Thorough
self assessment and business planning is going to be a major factor in determining your success. This section gives you some
points to consider for your business plan, links to impartial advice through Business Link, self assessment tools and sample
business plans.
Having a business idea doesn’t necessarily mean having an original idea or inventing something brand
new. New inventions will continue to appear as long as we have problems to solve or desires to fulfill
but business ideas are often based on tried and tested business models such as restaurants, shops and
business services. What is important is how you research, develop and ultimately sell or package your
idea.
There is some informative reading on developing, researching and exploiting your ideas available at http://www.businesslink.gov.uk/ideas
Something you must consider is what type of business you plan to run. A small
business could be run as a sole trader, partnership or as a limited company. You
will find advice on how to decide what is best for you on the
Business Link website.
You may even wish to set up your business as a
Social
Enterprise. The
Business Link website provides guidance.
Another service offered through Business Link is the Start Up Check List. If you are still in the idea
or development stage we recommend looking at the Start Up Check List http://www.businesslink.gov.uk/startupchecklist
Other useful resources:
Self assessment tools and advice on training
and development
Business tools including calculators for budget, cash flow, currency conversion and lots more Money
Tools
Writing a business plan
Business Plan Basics
By Palo
Alto Software, Inc.
The best way to show bankers, venture capitalists, and angel
investors that you are worthy of financial support is to show
them a great business plan. Make sure that your plan is clear,
focused and realistic. Then show them that you have the tools,
talent and team to make it happen. Your business plan is like
your calling card, it will get you in the door where you'll have
to convince investors and loan officers that you can put your
plan into action.
Once you have raised the money to start or expand your business, your plan will serve as a road map
for your business. It is not a static document that you write once and put away. You will reference it
often, making sure you stay focused and on track, and meet milestones. It will change and develop as your
business evolves.
Do I need a business plan? Not everyone who starts and runs a business begins with a business plan,
but it certainly helps to have one. If you are seeking funding from a venture capitalist, you will certainly
need a comprehensive business plan that is well thought out and contains sound business reasoning.
If you are approaching a banker for a loan for a start-up
business, your loan officer may suggest a Small Business
Administration (SBA) loan, which will require a business plan. If
you have an existing business and are approaching a bank for
capital to expand the business, they often will not require a
business plan, but they may look more favorably on your
application if you have one.
Reasons for writing a business plan include:
- Support a loan application
- Raise equity funding
- Define and fix objectives and programs to achieve those
objectives
- Create regular business review and course correction
- Define a new business
- Define agreements between partners
- Set a value on a business for sale or legal purposes
- Evaluate a new product line, promotion, or expansion
What's in a business plan?
A business plan should prove that your business will generate
enough revenue to cover your expenses and make a satisfactory
return for bankers or investors.
- Executive Summary--features the highlights of your plan and
sells your idea in two pages or less.
- Company Summary--a factual description of your company,
ownership, and history.
- Products (or Services or both)--describes your products
and/or services and how they stand out from competitive products
and services.
- Market Analysis-provides a summary of your typical customers,
competitive landscape, market size, and expected market
growth.
- Strategy and Implementation-describes how you will sell your
product, how you will put your plan into action, and establishes
milestones.
- Management Summary-provides background on the management
team, their experiences, and key accomplishments.
- Financial Plan-contains key financials including sales, cash
flow, and profits.
What makes a successful business plan?
- A well thought out idea
- Clear and concise writing
- A clear and logical structure
- Illustrates management's ability to make the business a
success
- Shows profitability
How do you write a business plan?
Sitting down looking at a blank computer screen as you prepare to
start your business plan can be daunting. You may want to look
at some alternatives that will make the process a bit easier.
Hire a Professional
A professional consultant will create the business plan for you,
but you still have to be prepared to think through your business
and understand the underlying concepts in your business idea.
You will have to work closely with the consultant to ensure that
he or she develops a good plan that accurately represents your
business or business idea. You can find a list of business
planning consultants at www.planconsultants.com.
Buy a Book
There are many good books on the market that will help you to
understand what needs to go into a good business plan. You can
read Timothy Berry's "Hurdle: the Book on Business Planning".
Use Business Planning Software
A good business planning software package will provide you with an outline for a well-developed, objective-based
and professional business plan. Software packages will remove the problem of starting from scratch by
structuring your plan for you. The software should ask you the right questions that will pull out the
most important underlying concepts within your business idea.
Find
out more about the leading software package on the market, Business Plan Pro.
Business planning resources
www.paloalto.com
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