Business Plans

Business plans - what are they and do we need 'em??

A business plan is a document that sets out exactly how an entrepreneur proposes to start a new business venture.

The plan allows us to:

• set clearly defined objectives
• identify steps we have to take to start trading...

Example time...

http://www.buzzfeed.com/mariasherm/music-festival-hacks-that-will-make-your-experience-way-more#yvopde

When it comes to the joys of you attending festivals, you want to make sure you are fully prepared otherwise you end up like this crazy bunch who didn't even bring a coat!!! 

Without creating a list of the necessities - we wouldn't know where to begin. By clearly identifying what actions need to be undertaken, we relieve some of the stress.

• The plan also helps give our business direction. We can very easily get caught up in the excitement of our new business, but sometimes we need to remind ourselves of our final aim.
• And of course, our plans should support us when trying to raise finance.

Several people are going to be interested in your business plan. The main ones are your banks and potential investors. Our suppliers however may also want to know more about our business to see if they support your idea and want to be involved. The plan may also help you gain trade credit (take the products today but pay later).

Ultimately - YOU should be regularly looking at your plan. You need to know where you're going and how you are getting there.

Benefits of a business plan

• Encourages a logical and detailed breakdown of the business
• Forces an entrepreneur to stop and think
• May identify a weakness or gap in the entrepreneur’s knowledge
• Helps secure funding
• Provides a framework
• Progress can be reviewed against plans

Limitations of a business plan

• Can be difficult to make accurate forecasts
• Difficult to turn paper plans into reality
• Opportunity cost of time spent planning - causes a delay to trading
• Can cost money if help is needed
• Can restrict creativity

Sources of information

As a new start-up, we may be a little unsure of certain areas of our business plan, but where on earth can we go for help? Below is just a few suggestions as to where we can gather the necessary info...

• Small business advisor
• Bank managers / Accountants
• Government agencies
• Library (they have books and stuff here!!!!)
• Internet
• Other businesses