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 | | 
