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Developing Business Plans

Module 1 – Growing a Business Idea

By the end of this lesson you should be able to:

1. Understand the purpose and content of business plans.

2. Understand the sources of information and guidance available to help businesses plan for competitive advantage.

3. Explain the resources required to construct a successful business plan.

Learning Objectives

In the introductory stages of a business a firm will produce a business plan.

What is a business plan and what does it included?

Discussion!

Document – plan for future, allocate resources, identify key decisions and prepare for problems or opportunities.

Extra funding – Present information to banks, potential investors or business angels.

Progress check – Can be used to check meeting objectives. Compare actual results against estimates.

What is a business plan?

LO1) Understand the purpose and content of business plans.

1) Executive summary

• Main features of the business.

• 1-2 pages in length.

• Include highlights from the other sections of the plan.

2) Business Description

• Start date/ how long trading.

• Type of business/ sector of market.

• Legal structure and vision.

3) Product or service

• What selling.

• Difference from competitors.

• Benefits to customers.

• Future developments.

• Protection.

4) Financial Plan

• Key financial documents, such as:

• Cash Flow Forecast

• Profit & Loss

• Break-even

• Balance Sheet

5) Management Team

• The key members of the business.

• Skills and experience.

• No of employees and salaries.

6) Market Analysis

• Data about size and growth of the market.

• Customers.

• Competition.

7) Strategy and Implementation

• How to achieve objectives.

• Marketing – price, promotion, sales.

• Production – location, production, systems.

1 2

Which part of the Business Plan?

Balance Sheet

Financial PlanLO1) Understand the purpose and content of business plans.

Which part of the Business Plan?

Marketing – price, promotion, sales.

Strategy and Implementation

LO1) Understand the purpose and content of business plans.

Which part of the Business Plan?

Difference from competitors

Product or service

LO1) Understand the purpose and content of business plans.

Which part of the Business Plan?

The key members of the business.

Management Team

LO1) Understand the purpose and content of business plans.

Which part of the Business Plan?

Type of business/ sector of market.

Business Description

LO1) Understand the purpose and content of business plans.

Which part of the Business Plan?

Main features of the business

Executive summary

LO1) Understand the purpose and content of business plans.

Carry out research in the following areas:

Small business advisors Banks Government

Prepare to feedback your findings

What help is available for creating Business Plans?

How easy/ hard was it to

find this information?

What type of guidance the following offer for writing business plans?

LO

Small business advisors

Accountants and bank managers

Government agencies

• Business Link• Advice on how to

construct• What should be

included• Examples

• How to write a business plan

• Provide information guides

• A local business manager

• Seminars

• Department for Business, Enterprise and Regulatory Reform

• Help and guidance• Grants

LO2) Understand the sources of information and guidance available to help businesses plan for competitive advantage.

Think about the resources that an entrepreneur requires to create a business plan.

Pair and discuss your ideas.

Share and discuss your team’s ideas.

Resources required?

LO3) Explain the resources required to construct a successful business plan.

Time – Very important in getting a plan right. However, this is not a unlimited or free resource.

Vision – clear idea of the business and its USP.

Numbers – include financial information.

Information about the business – is it clear what the focus is or the business idea?

Resources needed?

LO3) Explain the resources required to construct a successful business plan.

Task 1:State three reasons why banks and other lenders want to see a business plan before they will loan money to someone to start a business.

Test what you know!

Task 2: Explain three ways a business plan for a company’s first year of business would differ from its business plan for subsequent years.

Finished!

State three main reasons why it is important for an entrepreneur to create a business plan.

You should now be able to:

1. Understand the purpose and content of business plans.

2. Understand the sources of information and guidance available to help businesses plan for competitive advantage.

3. Explain the resources required to construct a successful business plan.

Re-cap Learning Objectives