Does Your New Business Need A Business
It’s never a good idea to begin a new business without having some kind of
business plan. After all, having no business plan is like driving to an unknown city without a map. It’s not a
Businesses without a well-thought out plan typically fail within the first
couple of years. This can end any would-be entrepreneur’s dreams.
The Strongest Part Of A Business
A business plan’s strongest part is the thought that goes into the plan and
not just the plan itself. People wanting to create a plan should look at it like a road map with a clear route to
What Should Be In A Business Plan
If you’re an impresario, what should your business plan entail? What can you
do to ensure your business succeeds where others have failed?
1. It should have details of how your business will
2. It should have a short synopsis of the business with the following sections
Sales and Marketing, Operations/Production, Purchasing, Personnel and
The financial section should include detailed forecasts which you and any
investor can understand.
The short synopsis should briefly describe the main area of the business
whilst also outlining the part each section plays in achieving the overall plan.
Sales and Marketing Section
The sales and marketing section needs to show an analysis of forecast sales
and the marketing budget required to achieve those sales. It also needs to look at the strengths and weaknesses
of the competition and to derive a strategy to be able to compete with them effectively. The sales part of the
business plan needs to explicitly note the sales volume for every product over the first year and at what price
these products will be sold for. It should also take into consideration unexpected events which could have a
negative effect on sales and profits and a worst case financial forecast should be
This section will depend on the kind of business you will have and the
variable on how the business will work. Does it provide services? Is it a retail business? Is it geared toward
manufacturing? The production section should detail the process that’s going to be used to produce the
products you are going to sell.
The purchasing section should include an examination of how products are going
to be sourced. Volumes must be stated and supply sources identified. It should also have real cost of all major
items noted…nothing should be estimated.
Your personnel section needs to include all the names of persons involved and
a summary of their skills; it should also include their qualifications and previous experience. It should also
lay out who it is you’ll need to recruit and the work they’ll perform in order for the business to
This part of the business plan should have the following financial forecasts
and loss account, balance sheet and cash flow broken down by month for the first 2 or 3
The purchasing and sales and production numbers including the prices and
volume need to be reflected in the financial report. Every serious assumption in the plan should be exposed to
financial sensitivity examination and take into account the possible risks for price and volume
There are so many benefits in having a detailed, well thought out business
plan. If the business is thoroughly researched before it’s begun, there’s a significantly higher chance of it
Chepstow Small Business Accountants are experts in producing Business Plans
and Financial Forecasts so if you need any help please contact us.
a Free Initial
01291 _ 630133
on the link below