View
319
Download
0
Category
Tags:
Preview:
DESCRIPTION
Writing an effective business plan for finance needs effort and concentration. If you are new in business writing then here are few easy steps to guide in your writing
Citation preview
DELIVERED BY:Business Services Support Limited – www.businessservicessupport.com Produced: By Sheila Elliott MBA, FCCA, LPNLP
HOW TO WRITE A BUSINESS PLAN-BUSINESS PLANNING FOR FINANCE
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
WHAT YOU WILL LEARN Different sources of finance
Identifying the right financing strategy
Putting together your business plan
Sensitivity analysis and financial ratios
Sourcing finance from UK wide lenders- irrespective of your credit rating
Copyright ©Business Services Support Ltd 2007
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
SOURCES OF FINANCE V PROS AND CONS
Grants- not paid back but not widely available
Loans- repayable with interest (with exposure to interest rates movement)
Equity- not repayable but dividend expected as well as capital growth; also loss of control.
The right balance for financing depends on your current financial needs and financial capacity.
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
TYPICAL STRUCTURE USED FOR APPRAISING YOUR FUNDING NEEDS Alignment of funders needs with your needs- policy on who to
finance or not, what is in it for us
Management capacity- can they be trusted- credit scoring, experience, character, track record, accomplishment
Products viability- target market, market size, profit potential
Marketing strategy and plan-market penetration
Financial viability- financial ratios, forecast profit and net-worth
Sensitivity analysis- changes in factors and impact on projection
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
BUSINESS PLANS- THE FUNDAMENTAL TOOL FOR RAISING FINANCE
Description of the business What finance is required and for what Vision and mission statement Market Analysis Products and Pricing Analysis of resources required and what is current available Analysis of external environment (PEST Analysis & Porters 5 forces) including competition analysis Marketing and sales strategies Milestones Risk Analysis and Management Systems SWOT Analysis Financial forecasts- profit and loss , cash-flow and balance sheet
Copyright ©Business Services Support Ltd 2007
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
Finance Required & PurposeAmount required
What is it required for
Historic financial performance:
- Tabular format
-Graph or pie chart
Some quotation from suppliers
Copyright ©Business Services Support Ltd 2007
WHAT IS THE FINANCE NEEDED & FOR WHAT
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
SCOPE AND CONTENTS OF A BUSINESS PLAN
Vision and mission statement Vision is critical for business success
Vision is the end state of your business
Vision paints a picture of what your business wants to achieve
Mission is the purpose for which your business is established
Mission - To provide high quality healthy meals in a restaurant settings for a specific target market. To enhance the potentials of individuals through high
quality training and education.
Vision - To become the number one restaurant in a particular niche market. To be the number one provider of business training across the world.
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
SCOPE AND CONTENTS OF A BUSINESS PLAN
Target Market Analysis List who the target market is - who you want to sell to
Describe their profile- sex, age, income profile, location, business size, location, age, type, life style and so forth.
What does the market need & how do they make purchasing decision
Size of the market – is it growing, declining, plateau (critical mass)
Purchasing power of the market- Market must be able to pay other wise your business is not viable.
E.G
The target market of ABC Limited (cleaning company) are:
Commercial business- offices, supermarkets, social care homes, pubs,
Public sector businesses- hospitals, government offices etc
Residential homes- across the south east of London
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
SCOPE AND CONTENTS OF A BUSINESS PLAN
Products and Pricing
Details of the products and
services provided currently
Details of new
products and services
Pricing strategy –
low end, mid end & top
end
Elasticity of demand
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
SCOPE AND CONTENTS OF A BUSINESS PLAN
Analysis of resources required and what is currently available
Who are the key people that are involved in the business or that will be involved in the business and how many/ roles- Organisation Chart
What is the credential of the core people involved- CV summary (staff, associates, partners, consortium etc)
Who will be the key suppliers of the resources required to produce products and services- credential and reputation
What premises will be used and how appropriate is it. What other resources are required
Are there gaps
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
SCOPE AND CONTENTS OF A BUSINESS PLAN
Analysis of external environment (PEST Analysis & Porters 5 forces) including competition analysis
Political impact- legislations affecting the industry (minimum wages, no smoking, VAT, H& Safety, Environmental, anti-discrimination, and more)
Economic – state of the operating economy – booming, receding or stable- Inflation, exchange rate, interest rates, GDP, unemployment rate,……
Social- life style, population growth of your market, size and needs etc
Technological – impact of technology on your industry and impact on your business
Keynotes, Mintel etc
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
SCOPE AND CONTENTS OF A BUSINESS PLAN
Market Competition Analysis:
Demonstrate knowledge and awareness of alternative suppliers- do not imitate
Describe the core competitors- ensure you define them correctly
Location and size – Strengths and Weaknesses
Unique Selling Point- differentiating factors
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
SCOPE AND CONTENTS OF A BUSINESS PLAN
Marketing and sales strategies
What is the business model you will use to compete.
Think 7 P- Product, Price, Promotion, Place, Process, People & Policies
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
SCOPE AND CONTENTS OF A BUSINESS PLAN
Milestones What are the gaps identified in the business plans
List actions you will take to close gaps
Who will be responsible for each action
What is the deadline date for accomplishing the actions
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
SWOT ANALYSIS.
Copyright ©Business Services Support Ltd 2007
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
Risk Analysis and Management SystemsWhat are the risks and how will you managed them?
Demand risk
SCOPE AND CONTENTS OF A BUSINESS PLAN
Competition risk
Operating risk
Financial risk
Strategic risk
Political risk
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
SCOPE AND CONTENTS OF A BUSINESS PLANFinancial forecastsprofit and loss, cashflow and balance sheet Is the business model financially viable
What is the projected sales- linked to the size of the market and demands for your services and products x price
What is the cost of providing the products and services- linked to inflation of market delivering the resources or broad market).
What is the costs of capital- linked to interest rates and the general economic conditions….
COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011
SCOPE AND CONTENTS OF A BUSINESS PLAN
The End
Contact Details: Sheila Elliott FCCA, MBA
Email- sheila@businessservicessupport.comTel- 0208 310 4101 or 07737459730
If You need finance for your business please contact us. We can assist you to access a wide range of funder irrespective of your credit rating and capacity.
Recommended