Business Planning

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    Business Planning

    Increases the likelihood of business success and is required in some finance applications such as a bank loan. The business plan shows how the business will develop over time – vision for the business and potential profitability.

    A well written business plan will:

    • Force owners take an objective, unemotional, critical overlook of the business idea
    • Outlines a road map and development of the business
    • An action plan which identifies critical tasks and set goals
    • Flag potential problems
    • Show the owner is cautious, responsible and credible – increase investor confidence

    Contents of a business plan:

    • Executive Summary: Business overview, describes business opportunity, marketing and sales strategy, operations and finance
    • Business Opportunity: Description of the product, price and quantity to be produced
    • Buying and Production: Where resources will be supplied from, production method to be used, cost of production.
    • Financial Forecasts: Sales Forecasts, Cash-Flow forecast, profit-loss forecast and break-even analysis
    • The Business and its objectives: Name of the business, address, legal structure, aims and objectives
    • The Market: Size of the potential market, description of the potential customers, nature of the competition, marketing priorities
    • Personnel: Who will run the business, how many employees, skills and experience of those who will work in the business
    • Premises and Equipment: The premises to be used, equipment which needs to be obtained and financed
    • Finance: Where the finance to start up and run the business will be source

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