You can use the image above  to view more information

Expert Advise

Why is a Business Plan important?

• It forces you to arrange your thoughts in logical order.
• It forces you to simulate reality and anticipate pitfalls before they occur.
• It will be used as your working action plan.
• It is an essential aid when applying for finance.
• It can eliminate potential flaws in your business.
• It is an essential decision-making tool.
• It can assist you when trying to obtain credit terms from suppliers.

A Business Plan - the basics

It needs to be:

• Professional
• Concise
• Comprehensive
• Logical
• Simple and easy to read
• Based on facts or evidence

Step 1: Prepare a professional-looking title page and contents page

Include:

• The business name
• The addresses, telephone numbers, fax numbers, email address and WebPages.
• The business logo.
• A list of the owners their contact details and titles.
• The date the business plan was printed.
• The name of the person that prepared the business plan with contact details
• A clear contents page.

Step 2: Prepare an Executive Summary

The summary should include:

• A description of the service or product you provide or plan to provide.
• What makes you different to other similar businesses and why you believe your business is viable?
• If it is a business in operation include some history and information on its past performance
• List your short, medium and long-term goals and objectives. You can determine how long is short, medium and long term, for different businesses in different stages of growth the time-span could be different. If you think short-term is 6 months or 12 months say so.

Include a summary of:

• Your marketing plan.
• Your projected sales for the first few years (on a graph if possible).
• Your expected gross profit.
• Other financial information that will interest the reader.

Step 3: Company Information and Legalities

• Type of business ownership selected (if you are starting a new business).
• You could start off as a sole proprietorship and change later into a CC or company. If you are growing your business, include your future plans. If you intend listing on the JSE (Johannesburg Stock Exchange) or being bought out by your competitors, maybe you should register a company.
• What are the legal requirements, if any?

Step 4: List products and / or services to be offered

• Include an outline of your products and or services.
• Include photographs or drawings of the products if possible.
• How is your product or service different to what is currently available?
• Include a technical outline of machinery that you will need to purchase. Include brochures and quotes with a picture of the equipment and any technical details that may be required.

Step 5: Outline your proposed marketing plan

• Include copies of market research done, including statistics and questionnaires distributed.
• Include some background information on your industry. What trends are taking place and how will this affect your business?
• Describe your specific target market.
• What is your projected turnover for the next 12 months?
• A brief description of your competitors’ marketing strategy.
• A description of your sales and promotion strategies. How are you going to market your products and services? Insure that you include a detailed plan of what you will do when and how much it will cost.
• Include advertising material, copies of advertisements and costs to be incurred.
• Include a map showing proximity to main competitors, main transport routes, commuter routes, traffic flow etc.
• A SWOT analysis of yourself and your business: Strengths, Weaknesses, Opportunities and Threats. Try and be as honest as possible.
• A description of your competitors, their target markets, position in the market and their products. Do a SWOT analysis of your main competitors.

Step 6: Include information on your staff and management team

• How many staff do you intend employing?
• Show your organizational structure.
• Include a job description for each member of staff.
• Include the salaries and packages you will offer key staff, if you have this information available.
• Include a CV of yourself and your key staff showing your ability to develop the business, if specialized skills are required to make the business a success.
• Remember don’t overdo it with the CV one or two pages will be sufficient and exclude the certificates.
• If training is required. What and where will training take place?

Step 7: Outline your financial plan and strategy

• Detail your purchasing strategy. Who will you purchase your products and services from?
• Show how you will cost of each of your products and services.
• What is your price-setting policy?
• What gross profit will you achieve on each product or department.
• What record keeping system will you be using?
• Prepare a projected Income Statement for the first few years.
• Calculate your projected break-even point monthly and annually.
• Prepare a projected cash flow forecast.
• Prepare a projected balance sheet.
• Look at different scenarios - best case, average case and worst case.
• What financing required, if any? (Start-up requirements if it is a new business).
• What security, do you or the business have available?

 Step 8: Outline your operating Plan

• A description of your location its advantages and disadvantages relation to labour force, proximity to customers etc.
• What premises will be required?
• Include a layout of the premises and machinery.
• If in manufacture how will this be done?

Step 9: Technology

• What computer systems will you use?
• What software will you require?
• What are your plans for the Internet?

Include:

• Quotes, floor layouts and plans, newspaper or magazine articles of interest, a one page summary of lease agreements, product photographs and any other information that you think that could be useful to add value to the business plan.