Business Plan Template v7

8/6/2019 Business Plan Template v7

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Name of your business

Business Plan

Your name

Month & Year


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Contents

Name of your business....................................................................1

Business Plan..................................................................................1

1. PURPOSE OF PLAN AND SUMMARY................................................4

2. BUSINESS & CONTACT DETAILS....................................................5

3. PRODUCTS & SERVICES................................................................6

4. THE MARKET.................................................................................6

5. PEOPLE INVOLVED........................................................................9

6. PREMISES.....................................................................................97. LEGAL...........................................................................................9

8. SUPPLIERS..................................................................................10

9. QUALITY ISSUES..........................................................................10

10. INFO TECHNOLOGY...................................................................10

11. ENVIRONMENTAL......................................................................10

12. BUSINESS OBJECTIVES & YOUR VISION FOR THE FUTURE..........10

13. CAPITAL EXPENDITURE.............................................................11

14. INCOME....................................................................................12

15. DIRECT COSTS..........................................................................13

16. OVERHEADS.............................................................................14

17. FINANCIAL CONTROL & CASH FLOW..........................................16

18. FINANCIAL PROJECTIONS..........................................................17

19. ACTION PLAN............................................................................18

20. APPENDIX.................................................................................20How to update this list and page numbers: Hover your mouse over the list above Right click your mouse Update field Update entire table

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Remember to delete these instructions!

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Some hints for writing your business plan

Start with sections that youve got plenty to say about, like Products and services or Customers. Business plans are a bit like jigsaws start with the easy bits theedges. Youll eat the elephant one bite at a time!

Pretend the reader is from Mars! Assume they know nothing, so explain everything. Keep the plan objective. Write it in the third person: instead of saying I will have

flyers made; say Flyers will be made.

There are plenty of risks in business. So say what they are and how you can deal withthem.

Give full answers. If the answer to Who are your customers? is Truck drivers inAberdeen, write My customers are truck drivers in Aberdeen

Read your business plan every month. What has changed? What needs to beupdated?

Show your business plan to others who can help make your business even better.What do they suggest? Ask them to make helpful suggestions.

Be careful who you share your business plan with.

Another way to start a business plan: buy a lever arch file, and some card dividers.Make each divider a different section of the plan, i.e. a divider called Premises, onecalled Marketing and so on. Then just collect notes, scraps of paper, as you goalong.

Do a different version of the business plan for anybody who needs to see, like funders.Keep a working version for yourself.

The template here is just a guide. If it doesnt meet your needs, change it!

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1. PURPOSE OF PLAN AND SUMMARY

Why are you writing this plan?

Who needs to see it?

Do you need to access funding?

Do a short description of your product or service, legal status, target customers, staff,premises etc. - half a page at the most.

After reading this somebody should have a clear idea what your business will do.

List of things I still need to do:

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2. BUSINESS & CONTACT DETAILS

Business NameWhat is your business name? (Or proposed name)

Contact NameWhat is your name?Also your date of birth & age next birthday - may be useful for grants

Address (Home & Business)Home:Business:For limited companies, where is your registered office?

Telephone No. (Home & Business)

Home:Business:Mobile:

E-mail address (Home & Business)Home:Business:

WebsiteWhat is your website address?

Legal StatusWhat type of business will you have - sole trader, partnership, limited liability company?Will you be VAT registered?

Date of start or proposed startWhen do you plan to start? (Or approximate start date)

Names of partners or other directorsFor partnerships, name the other partners.For limited companies, name the other directors.

QualificationsWhat qualifications do you have?List them all, even if they dont seem directly relevant to your business.

Work ExperienceWhat have you done in the past?What business or management experience did you gain?If you previously ran your own business, write a short summary about itPut your CV in the appendix

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Advisers ConsultedWho have you spoken to about your proposal?Accountant: e.g. John Smith, JS Accountants, AberdeenSolicitor:Bank manager:Business Gateway advisor:

Other business owners:List of things I still need to do:

3. PRODUCTS & SERVICES

What products or services will you offer? Be specific!What stock, raw materials or consumables will you need?If you make things, how will this be done?List of things I still need to do:

4. THE MARKET

Market researchWhat market research have you done - talking to customers, questionnaires, looking atmarket reports?How do you know that a market exists?How do you know that customers will buy from you?As a result of the research, how are you going to proceed?List of things I still need to do:

CustomersWhat type of customers are you targeting?Be as detailed and precise as you can.What do your customers have in common?Age? Male/female? Location? Lifestyle? Disposable income?If you are selling to businesses, what type and size?How are your customers using new technology?List of things I still need to do:

Geographical area coveredHow far away will customers come from?How far out will you go from your base?How will you manage travelling time?List of things I still need to do:

Size of marketHow many potential customers are there for your business within your area?How big a slice of the market are you planning to deal with?Is the number of customers expanding, static or declining?If static or declining, how will you get more business?List of things I still need to do:

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CompetitorsWho do you compete with head-on?Who are your indirect competitors?Where are they located?Have you reviewed their strengths and weaknesses?If you have a few close competitors that you can name, review the strengths &

weaknesses of each.If you have lots of competitors, review the strengths & weaknesses for each type of competitor, e.g. national competitors, regional competitors, local competitors.How can you develop a competitive advantage over them?List of things I still need to do:

SWOT AnalysisThis is a review of the strengths, weaknesses, opportunities and threats facing you andyour business.Be honest!Dont undersell yourself.

Get a friend to do a SWOT on you.Some ideas:

Internal strengths External opportunities I have excellent experience in the trade I like working with customers I have a good appreciation of pricing &

quotes I have lots of contacts in the trade

other tradesmen and engineers

I have a good knowledge of suppliers I have a good knowledge of customersin the local area

I have received excellent training I am already in the industry association I enjoy networking with people I have a good knowledge of the IT

industry

Setting up annual maintenancecontracts

I can work with other sole traders I can work with other consultants on

larger jobs Looking for subcontracting from other

companies Potential of a contract from the localauthority

Internal weaknesses External threats I will be a sole trader working by

myself so there is a limit to how muchI can take on I dont know much about bookkeeping/

accounting I will need an accountant I need to find out more about marketing

and selling My monthly overheads are high I dont have much finance I need to learn about managing staff

New competitors setting up

Any changes to legislation that mightaffect my industry Changes in employment legislation Downturn in the oil industry in Aberdeen

How can you Make the most of your strengths?

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Overcome your weaknesses? Make use of the opportunities? Keep an eye on the threats?

Why will customers buy from you and not from your competitors?How will you be different from your competitors?

List of things I still need to do:PricingHow did you arrive at your pricing?Give examples of your prices.What margin will you make?Which products or services will make the most money?Will you use a price range, e.g. economy, regular and luxury?Have you thought about an hourly rate, price per job, charging for travelling time?List of things I still need to do:

DistributionWhat sales channels will you use to get your product/service to your customers?Will you sell directly to them, from a shop, internet or some other method?If you are selling products and also deliver to customers, how will you do this?What transport needs do you have?What post or courier services will you need?Are you going to be importing or exporting?List of things I still need to do:

Design and packagingHow will you package your products?

Will you use a brand, logo, typeface?What design will your stationery, vehicles, premises and uniforms have?Put examples in the appendixList of things I still need to do:

Promoting & sellingHow will you promote your business direct marketing, advertising, sales promotions,fliers, publicity & PR, personal selling?Where will you promote - particular towns, newspapers, housing estates?What message will you put across?Do you have a calendar of promotional activities?

How can you target customers for personal selling?List of things I still need to do:

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5. PEOPLE INVOLVED

Who will be involved in the business? What will they do?What things will you contract out - bookkeeping, lawyer, employment law?

What employees will you take on now? In the near future?What positions will they hold and what will they do?How much will you pay them?How will you recruit them?What training will they need and how will you train them?List of things I still need to do:

6. PREMISES

Where will you operate your business from? Home or business premises?Describe the location & layout of the premises - number of rooms, facilities, equipmentHave you obtained the necessary permission for working at home?Have you already obtained business premises?What rent and rates are involved?Is the property owned or leased? How long for? When is it renewed?What conversion work is needed? When will this be done?List of things I still need to do:

7. LEGAL

What insurances do you need e.g. public liability, product, professional liability, vehicle,stock, equipment, accident or key man insurance?Do you need planning permission or building warrants?Are there any licensing or environmental health issues?Do you need to pay any association, membership or certificate fees?Are there any other legal requirements specific to your business?What arrangements do you have for HMRC, Companies House, income tax, NI, VAT?Have you registered for Data Protection or playing music?What Health & Safety issues do you need to deal with?What other licences or contracts do you need?How will you work with your lawyer?List of things I still need to do:

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8. SUPPLIERS

What suppliers will you need?What have you agreed about prices, volumes, discounts, payment methods, payment

terms?Have you checked their prices with other suppliers?List of things I still need to do:

9. QUALITY ISSUES

Do you need to be involved in any quality programmes?Will ISO9002 be relevant to your business?Will you be an Investor in People?Will your business be inspected by any external organisations?List of things I still need to do:

10. INFO TECHNOLOGY

What computing needs do you have?How will you use new technology in your business?Have you taken steps to back up your information?List of things I still need to do:

11. ENVIRONMENTAL

Do you have waste products to dispose of - food, oil, tyres, grass cuttings, water?What can you recycle?Are you aware of legislation?Do you need to consider noise or pollution aspects?List of things I still need to do:

12. BUSINESS OBJECTIVES & YOUR VISION FOR THE FUTURE

What turnover and profit do you plan to achieve, year by year?Do you plan to introduce any additional products or services, staff, premises, equipment?When will these be introduced?How will you finance them?List of things I still need to do:

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13. CAPITAL EXPENDITURE

What assets will you bring to the business - computer, vehicle, tools and equipment?List everything and put it in the appendix

Estimate the realistic second hand value (not what you paid for them).What new things will you need?Where and when you will get them?How much will they cost? How will you buy them?What IT and communications equipment will you need (e.g. phone, fax, computer)?List of things I still need to do:

Examples:

I have most of the tools & equipment needed and the second hand value is about 300.The equipment is listed in the appendix; I will use this list to work out the tax allowances at

the year end.

I will need to buy about 1,200 worth of equipment in the first month (e.g. additional handtools, test machine).

Tools & Equipment (own already) 300Tools & Equipment (need to buy) 1,200Van (need to buy financed) 5,000

TOTAL 6,500

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14. INCOME

How much are you selling for each different product or service?How much are you planning to sell in each month?

Will your business have seasonal ups and downs?When will you will be busy, such as summer time or Christmas?When will you be quiet, such as New Year & January?When are you planning to take time off for holidays?How will you cover costs during this time?List of things I still need to do:

If you are applying for the 18-30 grant, you need to do projections for the first year of your business.

You also need to show how you arrived at the figures - use these examples as a guide:

My income is based on 10 sales x 200 every month for the first 3 months, rising to 15sales after that. June and December sales are reduced due to holidays (mine and mycustomers). Lower sales are expected in late Aug & Sep. My market research & previousexperience indicates these are slow months for this kind of business

My forecasts are based on the following number of chargeable hours per week:- 20 in Sep (average 2.9 days a week working)- 25 in Oct (average 3.6 days a week)- 30 in Nov (average 4.3 days a week)- 25 in Dec & Jan (back to 3.6 days a week)

- 35 hours a week after that (5 days a week working).This increase in hours takes account of building up the business. In reality I plan to workabout 6 days a week. There is enough demand locally for me not to have to make distanttrips which waste time.

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15. DIRECT COSTS

What costs are incurred only in producing your products & services?This varies from business to business, but is often stock, raw materials, wages or rent.

Example:

Stock and raw materials is estimated to be 10% of the sales figure; this is based on myprevious experience.

An allowance of about 32%+VAT will be made for raw materials, sundry gas fittings andPTFE tape etc. This will vary depending on whether the customer wants to buy the parts,or get me to source them, and the kind of jobs I am doing. For example, refitting all theradiators in a house, with me buying the materials, will mean a vastly different stock figureto repairing a gas cooker, for example. The stock figure might be over-estimated but this

will cover all eventualities. Gross profit works out to be about 70%.

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16. OVERHEADS

Overheads are any other costs.Explain what each one is.

How did you arrive at the figures? Are they firm quotes or estimates?List of things I still need to do:

Examples:

Employee wagesWages are shown as 1,000 each for both of the Full Time staff.

Rent & RatesRent is 582 a month, and rates 100 monthly.

Heat Light & Power 120 has been allowed for the use of part of my flat a room for doing administration,preparing invoices etc (based on advice from HMRC).

Phones & internetAn amount of 30 per month has been provided for my mobile phone.

InsurancesAn allowance of 200 has been made to cover public liability and stock insurances. Thisis based on a quote from the insurance company.

Marketing & Promotion300 covers the cost of fliers, business cards, initial newspaper advert & vehicle signs atstart up, and 20 per month after that to cover further flyers and advertising when needed.

Misc., sundries, other 30 a month for office sundries, receipt & invoice books, postage etc, and unexpectedcosts.

Travel & Motor ExpensesI have assumed that I will use 2,000 of fuel in the year (about 38 a week). I haveassumed that vehicle insurance will cost 600, servicing 500 and road tax of 175.

Bank chargesThe bank has confirmed that there will be no charges in the first year, and we havediscussed likely charges for the second year.

Loan repayments & interestThe loan repayments are 350 and interest 50 monthly.

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Accounting & legal feesI will maintain my own bookkeeping records but I have allowed 200 for John SmithAccountants to prepare my self-assessment tax returns at the end of the year. Thecustomer contract template will cost 50 from JS Legal.

RepairsAn amount of 20 a month has been allowed for repairs to machines & equipment.

TrainingTo keep my training up to date, I will spend about 500 in additional courses every year.

DepreciationBoth the equipment and the van will be depreciated at 25% of the remaining values everyyear.

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17. FINANCIAL CONTROL & CASH FLOW

Have you done a personal spending budget to see how much money you need to live onevery month?

What is the minimum amount of sales that you need to break even?If your drawings are low initially, how will you support yourself?If the cash flow shows negative figures, how will you deal with this - bank overdraft,personal savings?How long will customers take to pay?How will you do credit control?If you run a limited company, what split of salary & dividends will you have?How will you save up for the tax & NI bill?Do you need to borrow money? How much do you need?Where will you borrow it from? Over what period and interest rate?Are you eligible for any grants?

Have you taken on a bookkeeper or accountant?How will you work with them?What stock will you have at the end of the year?

List of things I still need to do:

Examples:

Customer CreditMy payment terms are payment in 30 days. I anticipate that customers will pay by chequeon delivery. Deposits will be taken for large jobs to cover materials. I will also charge

interest on late payments and offer discounts for early payment.

StockI plan to hold stock of consumables worth about 150 at any one time.

Payments to SuppliersI have assumed that no credit is available from my main suppliers for the first 3 months. Iwill then approach them to inquire about credit accounts.

Personal DrawingsI anticipate that first year drawings will amount to 15,000 after tax and N.I. The cash flow

shows a minus figure of 600 in January; I will rely on my personal savings in this month.Directors salary and dividendsMy salary will be 15,000 and a further 10,000 will be taken as dividends.

Tax and N.I. ContributionsBased on the cash flow I have made an estimate of the net profit at the end of my firstyear of trading. I have accounted for about 25% of the net profit to cover the tax & NI bill.This is shown as a monthly cost on the cash flow; the money will be placed in a highinterest/instant access account.

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19. ACTION PLAN

What needs to happen next?Make a calendar list of the things you will do over the coming year this will help you to keep you on track.Use this table as a guide - remove the parts you dont need, change or add in other parts.

Months 1 2 3 4 5 6 7 8 9 10 11 12Business set up Set up

limitedcompany

Products/services

Suppliers Set upagreement with S&SSupplies

Legal issues Lawyer to docontracts

Market research Continuequestionnaires

Pricing

Promotion

IT issues, website

Insurance Renewcar ins.

Tax, NI, VAT Register withHMRC

Months 1 2 3 4 5 6 7 8 9 10 11 12Banking Set up

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businessbankaccount

Finance Arrange5,000 loan

Premises

Employees Take onemployee

Contracts

Networking

Selling activities

Book keeping,accounting, cashflowTools & equipment

Environmental

Quality schemes

Sales targets &reviewOther

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20. APPENDIX

Put things in the appendix to avoid the main part of the business plan getting cluttered up.The reader can refer to them if they need to.

Things you can put in the appendix might include: CV Results of your market research Competitor literature & info Personal spending budget Breakeven analysis List of equipment already owned List of equipment needed Supplier quotes Contracts

Leases Qualification & training certificates Risk analysis

Personal spending budgetHow much money do you need to live on - exactly?Your advisor can give you a spreadsheet table to work out your weekly, monthly, quarterlyand annual costs.Include any other income into the house e.g. from partner Put a copy in here

Breakeven analysisHow much money do you make to break even?How many sales or pieces of work will you need?Your advisor can help you to work out the minimum you will need.Put a copy in here

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Equipment already ownedUse this table as a guide.

Item Cost new Value now Useful lifeComputer 1500 500 Another 2 years

TOTAL

Equipment still requiredUse this table as a guide.

Item Cost new Buy using Useful lifeVan Approx 8,000 HP from dealer

(200 a month)

5 years

TOTAL

Risk analysisYou might find this is useful to add in. Far from concentrating on doom & gloom, thiscan show funders that you have thought things through and taken sensible steps toprotect your business in the event of certain things happening.

Item Chances of happening How I will deal with itFailure of my main supplier Low. They have been

trading for 20 years, I havechecked their accounts onCompanies House website

I have approached other suppliers and agreed termsin principle. I will keepchecking my main suppliersaccounts.

Steep rise in interest rates Medium I will keep a close eye onthis. Increase marketing of other services should thishappen.

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Business Plan Template v7

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