Business
Plan Development
During the process
of developing a plan, it is important to keep in mind
the objective of the plan. Your first business plan
maybe to raise money and thereafter become an internal
plan that you review and update annually.
Raising funds
If the business plan
is for the purpose of attracting capital, then the primary
objective has to be to write the plan with due consideration
for the requirements of the bank, lender or investor.
They will need to see that your proposition represents
a sound return on investment.
The main aspects they
will be looking for are:
• Sound business
idea
• Good market research to underpin the opportunity
envisaged
• Capable management team
• Adequate provision for production facilities
or delivery of service
• Sufficient budget and workable marketing plan
to promote the product/service
• Realistic financial forecasts with acceptable
profit margins
• Risk assessment and contingency measures
• Funding to be injected by owner and details
of how investor’s money will be spent
• Details of proposed exit route for investors
Annual Plan
Whilst the initial
plan can be used as a basis for operating the business,
it needs to be regularly reviewed (at least annually)
and developed more into a strategic document. The primary
objective of this plan then becomes the management team,
to provide them with the necessary strategy and direction
to fulfil the expectations set out in the initial plan.
Banks and other lenders or investors may require a copy
of each year’s annual plan so they can see that
the business is still ‘on track’.
Some of the main topics
here would be:
• Reviewing and
updating the Marketing strategy and plan
• Reviewing Personnel requirements and procedures
– labour: sales ratios, skill levels, training
etc
• Reviewing Operational procedures – efficiency,
plant & equipment requirements
• Analysing past year performance and updating
the Financial forecasts for the next 3 years
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business plan software - updating your plan is
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