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UK Business Plan
1. Why do I need a business plan?
You need a business plan to show how you plan to make money in the business. This is essential not only as a way for you to get your ideas and your plan down on paper, but it is a necessity if you want to borrow the capital you need to get started or to attract investors that might be interested in your business. It is also essential for you to have a business plan for your existing because if you need to obtain more working capital for expansion or the purchase of new equipment.
2. What is the first thing I should do if I want to borrow money for my business?
When you are thinking about borrowing money for your business, whether it is a new business or an established one, you should first prepare a detailed business plan. This is a summary of how you intend to organize the business and implement the activities that it needs for it to succeed.
3. What are the main points of a business plan?
There are 8 main parts to an effective business plan. They are:
- Summary of your business. This is very short and tells about you, your business experience, the product or service you wish to sell and the proposal you have for doing so.
- Management. This is an explanation of how you intend to manage the business and whether or not you are the sole owner or if you have partners.
- Product/Service. This is where you give details about the product of service that your business will sell.
- Marketing. In this part of the business plan you explain how you plan to market the product or service including anything that you have already done to get this product on the market.
- Sales. If you are already in business, you can show the profit and loss statements of the company. For a new business, you can state the projected sales you expect to have.
- Operations. Tell where you business will be located, the type of equipment you will use and how you will run the day-to-day operations of the business
- Short term funding. Explain the amount of money you need for the business and why you need it. You can also include where you obtained your start-up funds if you have an existing business.
4. What is the main purpose of a business plan?
The main purpose of a business plan is to show the potential lender or investor that you have covered all the aspects of the business, that you have put a lot of thought and research into it, that you do have the background necessary for this business and that you expect it to succeed.
5. How large should my business plan be?
The size of the business plan depends on the business and the amount of money you are looking for. If you decide to include your resume with the business plan, make sure you keep it less than 2 pages. The rest of the business plan should be less than 10 pages and this would include profit and loss statements from an existing business.
6. What type of financial information is usually required for an existing business?
If you are using your business plan to help acquire funding for an exiting business, lenders and investors usually require the financial records of the business for the past three years.
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