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 The Challenge
A well-drafted business plan is crucial when raising finance or trying to attract investment, but it is also an essential tool for the successful management of a business. Including the right information will help you to develop your business and win new clients.
The Solutions
Executive summary
Write a short Executive Summary that encapsulates the whole plan- preferably just one page.
About the business
- Describe the business, including its history, structure, strategy and mission statement
- Highlight the skills and experience of key people like partners, directors and other key staff in this section
- Outline the product or service you provide and any innovations and achievements
- Describe your current and anticipated personnel requirements including any training and promotion policies
- Include a SWOT analysis, but don't avoid weaknesses or threats: these can only be dealt with after being identified
- Report on your business premises and outline any planned expenditure
About the market
- Analyse turnover by market segment, indicating the profitability of each area
- You can also including information about your competitors in this section, for example their strengths, weaknesses and market share
- Detail any major clients and business relationships to show your strengths and to allay any concerns over business concentration
- Outline your marketing activities to demonstrate how you identify and develop new business
Financial information
This is normally provided as an appendix.
The following should be covered:
- Five year summary of profit and loss account
- Key ratios to demonstrate your firm's strength
- Profit and loss projections
- Cash flow projections
- Forecast balance sheet
- Detailed explanation of any assumptions
- Sensitivity analysis
Contact Smith & Williamson
This document is part of the Entrepreneurs' Toolkit series, produced by Smith & Williamson. More information on this and other toolkit topics is available at www.smith.williamson.co.uk/entrepreneurs.
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