How to write a business plan ... 1

Writing a Business Plan

Many potential start-up businesses are daunted by the prospect of writing a business plan. But it is not a difficult process and a good business plan focuses the mind as well as helping to secure finance and support.

The business plan will clarify your business idea and define your long-term objectives. It provides a blueprint for running the business idea and a series of benchmarks to check your progress against. It is also vital for convincing your bank-and possibly key customers and supplier- to support you.

This briefing explains:

1.     What information to include.

2.     How to present your financial forecasts.

Core Focus

Executive Summary

The executive summary outlines your business proposal. Although it is the last section to be written, it goes on the first page of the business plan. It will be read by people unfamiliar with your business, so avoid jargon.

The executive summary highlights the most important points and should sum up six areas.

·        Your product or service and its advantages.

·        Your opportunity in the market.

·        Your management team.

·        Your track record to date.

·        Financial projections.

·        Funding requirements and expected returns.

When deciding whether to back a start-up, bank managers and investors often make provisional judgements based on the executive summary.

The main body of the plan is then to confirm the initial decision. The appendices at the back of the plan carry detailed information to support the main text.