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Ray DaleRay Dale

EEastbourne & astbourne & DDistrict istrict EEnterprise nterprise AAgency gency LLtdtd(more about services & other help later)(more about services & other help later)

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Business PlanningBusiness Planning

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Business PlanningBusiness Planning

Do you need a business plan – Why?Do you need a business plan – Why?

What information is required?What information is required?

Who can help you?Who can help you?

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Why have a business plan?Why have a business plan?

Starting a journeyStarting a journey– Where you are nowWhere you are now– Where you want to beWhere you want to be– The steps needed to get thereThe steps needed to get there

Objectives / GoalsObjectives / Goals

Would you go on a long journey without Would you go on a long journey without making some plans?making some plans?

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Why have a business plan?Why have a business plan?

Convince yourself the idea is real Convince yourself the idea is real

/ has a good chance of success/ has a good chance of success Convince others – staff, investors, funders, Convince others – staff, investors, funders,

suppliers, customerssuppliers, customers Clearer focus on product / service / vision Clearer focus on product / service / vision

being sold being sold Forces you to deal with all aspects of the businessForces you to deal with all aspects of the business Reminds you why you reached certain decisions, and Reminds you why you reached certain decisions, and

acts as a measure of progress / incentive to continueacts as a measure of progress / incentive to continue

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Why have a business plan?Why have a business plan?

Improve your chances of successImprove your chances of success

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What information is required?What information is required?

Narrative & Financials

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What information is required?What information is required?NarrativeNarrative

Why do you want to run your own business?Why do you want to run your own business? Ultimate aims Ultimate aims

– short / medium / long term goals to achieveshort / medium / long term goals to achieve

Current skills / opportunities for improvementCurrent skills / opportunities for improvement Resources / equipment requiredResources / equipment required Who are your customers? How many do you need?Who are your customers? How many do you need? Competition – SWOT – USP?Competition – SWOT – USP? How will you market your product / service?How will you market your product / service? Importance of market researchImportance of market research

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What information is required?What information is required?FinancialsFinancials

Personal Survival Budget – How much?Personal Survival Budget – How much? Start up costsStart up costs Running cost – overheads (fixed)Running cost – overheads (fixed) Sales forecastSales forecast Cash flow forecastCash flow forecast Profit / Loss statementProfit / Loss statement

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Financials - TipsFinancials - Tips

Don’t over estimate salesDon’t over estimate sales Don’t under estimate costsDon’t under estimate costs Charles Dickens - Charles Dickens - "Annual income twenty pounds, annual expenditure nineteen pounds & "Annual income twenty pounds, annual expenditure nineteen pounds &

six, result happiness.”six, result happiness.”

“ “Annual income twenty pounds, annual expenditure twenty pounds Annual income twenty pounds, annual expenditure twenty pounds

and six, result misery."and six, result misery."

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Sales ForecastingSales Forecasting

Not Mystic MegNot Mystic Meg Best estimate based on market researchBest estimate based on market research

– Potential customers / how many can you handle?Potential customers / how many can you handle?– CompetitionCompetition– Compare estimate to actual regularlyCompare estimate to actual regularly

Product / service rateProduct / service rate– Hourly / daily / weekly / project rateHourly / daily / weekly / project rate

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Sales ForecastSales Forecast- examples- examples

Daily rate (you) = £100Daily rate (you) = £100– Estimate 2 days pw for first 6 monthsEstimate 2 days pw for first 6 months– Estimate 4 days pw for next 6 monthsEstimate 4 days pw for next 6 months

Sales for year = 24 weeks @ £200 Sales for year = 24 weeks @ £200

+ 24 weeks @ £400+ 24 weeks @ £400

Total = £14400 per yearTotal = £14400 per year Rate per customer per day = £50Rate per customer per day = £50

– Estimate Number of customers per day = 4Estimate Number of customers per day = 4– Working 3 days pw for 48 weeks = 576 customers per yearWorking 3 days pw for 48 weeks = 576 customers per year– Sales for year = 576 x £50 = £28800 per yearSales for year = 576 x £50 = £28800 per year

NB – Number of days / weeks able / willing to work. SeasonalityNB – Number of days / weeks able / willing to work. Seasonality

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Business PlanBusiness Plan

Quite a lot to itQuite a lot to it Don’t be afraid of itDon’t be afraid of it Don’t expect to complete it in an afternoonDon’t expect to complete it in an afternoon Benchmark with other similar businessesBenchmark with other similar businesses Don’t put it in a drawer and forget about itDon’t put it in a drawer and forget about it Review regularly / change as necessaryReview regularly / change as necessary

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Who can help?Who can help?

Bank manager / accountantBank manager / accountant Investors / fundersInvestors / funders Mentor / similar businessMentor / similar business EDEAL – 2 hours FOC – EDEAL – 2 hours FOC – www.edeal.org.uk

Phone 01323 641 144 Phone 01323 641 144 Business Link – website, telephone adviceBusiness Link – website, telephone advice

workshops – workshops – www.businesslink.gov.uk

Phone 0845 600 9006Phone 0845 600 9006

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Business PlanningBusiness Planning

Do you need a business plan – Why?Do you need a business plan – Why?

What information is required?What information is required?

Who can help you?Who can help you?

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Any Questions?Any Questions?