| Archive for Downsizer For an ethical approach to consumption |
| Mrs Fiddlesticks |
writing a business planIts been mentioned in my business idea no2 thread that I really ought to write a business plan. As I've never done this before could do with some ideas of how to go about this. And it occured to me that this would be of use to other fledgling businesses. Perhaps we could make it in to an article? |
| marigold |
I've never done one myself, but there are loads of free resources on the net, e.g. http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073869162
But no doubt one or more of the small-business runners on here will be along to advise you soon. |
| Barefoot Andrew |
Business plans are a bit of a pain. A work of art. Desperately tedious to write. And they're subjective - not nearly as subjective as a CV, but there will still be a variety of opinion on how they should be done.
A business plan serves one or both of two key functions: (a) to help the business owner plan the logistical and financial operations of a business and avoid unforeseen problems, and (b) to convince a potential lender/investor of the soundness of the business. As such, a BP will broadly comprise the following:-
...and probably other bits and pieces I've forgotten... A. |
| vegplot |
I've only ever wrtitten one business plan, 13 years ago, and that's because I had to to get enterprise allowance. I've never really seen the point of them unless you wish to communicate to others what you business is about and where you want it to go but it's sometimes good to get something down on paper, a postcard is enough space to note all the important aspects.
It's important to have cash flow forecasts and spending analysed, especially if the business is young and growing but this isn't really a business plan, only part of one. My advice is unless you really need one avoid writing a full blown plan, it's very time consuming and is quickly out of date. Your time may well be better spent on cash flow and discovering where your market is. This is your real business plan. |
| crofter |
I think it is an excellent idea for an article. I have never written one myself, but have read a few, my only advice is be honest with yourself - you can project anything you like for year 1, 2, 3 but how likely is it to be the reality? Or don't be honest, be pessimistic, if your business still looks viable using worst case scenarios, go for it! |
| Calli |
i would also include the target market and how you intend to reach that market - a basic marketing plan comprising which methods best suited to your target market. |
| mrtibbs |
A plan is required .. how to measure success otherwise?The best person to keep informed about your plans is yourself! Write your plans down - refer to them every day / week / month and check whether you are hitting the milestones ( and inchpebbles ) you set.[An inchpebble is an interim target between milestones] You need to justify your funding by planning to get a return and what timescale that return will be delivered in. The plan needs enough detail to convince your investers you are spending their money wisely ( even if that investor is you ). It also needs milestones so you can see whether you are on track. There are lots of ways to write the plan but the more important thing is to refer frequently to the plan, take corrective action if required and see that your plan is delivered. |
| Chez |
I've got one I could turn in to a template with a bit of time/work? |
| twoscoops |
I've never written one 
It depends what you are going to do with it. You might need it to raise finance and whoever you approach will want to see it, or you might want to use it to set your goals and measure them, in which case it is just for you. Whatever you do it is well worth making a list of all your potential overheads - premises, staff, utilities, professional fees, marketing etc, and then making a calculation of how much you need to make to break even. For example, if your overheads are likely to be £50,000 per year and your gross profit margin is likely to be 50% then you need to turn over £100,000 per year to break even, the other £50k pays for your cost of goods. (Don't forget that your product or service might be subject to VAT) |
| vickersdc |
Business PlanningThe business plan is a good idea if you are serious about your business and you want to have an idea about how it will grow, how it will be marketed, who your target audience is as well as some basic thoughts about finances.If your 'Business Idea #2' is going to be just a seperate income made up of ad-hoc de-cluttering jobs as and when you come by them, then I guess you don't really need to spend the hours and hours in creating one - basically just keep a track of your income and outgoings. However, if it's going to be a serious venture then I do recommend you spending the time to do one - especially if you will be seeking finance from family / friends / banks / etc. Amongst other things, your business plan and accompanying financial forecasts will allow you to see how the business is doing against your own forecast. It is, as was mentioned above, a work of complete fiction(!) but when you write it you have to base it on some common-sense 'guestimates'. The plan itself should contain information about you (particularly if you are going to a bank for money), who your target audience are and how you intend to market to them, your competitors (where they are, how much they charge, the services they offer, etc.). List down your own services, your USP (unique selling point - what is it about your service that will give you the edge over your competitors) and also write down what you expect from the business. This last point can be quite important - are you doing this just so that you can afford a really nice holiday once a year or are you willing to forgo holidays for the next ten years, work 7 days a week and make your first million (assuming you haven't already  ).
For the financial bit (much more interesting) you need to record ALL the relevant outgoings - insurance, equipment, and so on. Then you can begin to work out your costs, how many sales you need to get on a monthly basis to cover your costs, cover the tax bill and make a profit. This is really useful - you can compare your forecast against the actual sales, this way you'll know if you are down against the forecast and can do something to rectify the situation before it gets out of hand. Personally, I hate writing business plans; but I like the financial side of them as it's something much more tangible. However, the business plan allows you to really think about your business and how you are going to make it successful. Cheers, David. |
| Silas |
Any bank will give you a template for a business plan and cash flow forcast |
| Gervase |
Excellent advice there from vickersdc.
Any bank, incubation agency, start-up helper or VC fairy is going to insist on a business plan before it will part with a penny. They will want projections on turnover, staffing, profit, losses - everything in fact, planned out for at least the next two years. I know that the majority of business plans are ridiculously optimistic works of near-fiction, but doing one should give you the chance to take a cool and dispassionate look at what you're planning to do and be realistic about it. So even if you're not approaching anyone for funding, pretend you are, and do it for real. I did one for real a few years back and secured a third of a million for an idea which sadly went down the khazi in a year, so there's proof that even lunatics get listened to if they have a business plan! |
| Silas |
Abusiness plan is worth doing as an excercise with any new project wether you are seeking funding or not, it will find flaws inthe best laid plans if done properly and honestly. |
| cookie |
I always found this site good for helping me with planning and ideas for my business. I also used it alot for Uni.
www.businessballs.com |
| Mrs Fiddlesticks |
vickersdc, thank you so much for your imput. I do think that certainly whilst I get it going business idea no 2 will be more ad hoc - I've no delusions of grandure from the idea (I've not earned in so long, how could I?)
I really started this thread because I thought that it was something that others at the beginning of a business idea would find useful as well - so for the good of DS - rather than very specific to me. Is it of use to others reading? I've set up simple accounts and I will do some business planning but I really don't anticipate needing finance or similar. |