Business Plan - Insert Name

Business plan - Insert Name

Business Plan

Insert Name

Insert date

Strictly Private and Confidential

Confidentiality Statement and Legal Disclaimer

Section 1: Executive summary

Section 2: Introduction and background

2.1Introduction

2.2Vision, mission and values

2.3Aims and objectives

2.4Business details

2.5SWOT analysis

Section 3: Service

3.1Product/Service Description

3.2USPs/Key Selling Points

3.3Pricing strategy

3.4IP and legal issues

Section 4: Market analysis

4.1Market overview

4.2Customers/beneficiaries

4.3Competitors

4.4PESTLE analysis/Market Trends

Section 5: Marketing strategy/plan

5.1Marketing objectives

5.2Marketing strategy

5.3Promotional plan

section 6: PEOPLE

6.1Management structure/governance

6.2Organisational structure

6.3Staffing requirements

6.4Volunteers

6.5Training

6.6Professional services

7.0Operations and Legal issues

7.1Premises

7.2Vehicles/equipment

7.3Stock/Supplies

7.4Systems

7.5Work plan and timescales

7.6Legal Issues

Section 8: Finance

8.1Funding

8.2Sales projections

8.3Expenditure/costs

8.4Financial projections

8.5Breakeven

8.6Sensitivity analysis

8.7Ratios

9.0appendices

List of appendices

Appendix 1: Insert

Appendix 2: Insert

Appendix 3: Insert

Appendix 4: Insert

Appendix 5: Insert

Appendix 6: Insert

Appendix 7: Insert

Appendix 8: Insert

Appendix 9: Insert

Confidentiality Statement and Legal Disclaimer

The provisions of this business plan are privileged and confidential. Unauthorised reproduction or distribution of this business plan or any of its contents in any form or under any circumstances without prior written consent is prohibited. The recipient is responsible for returning all copies of the business plan immediately upon request by the provider.

While the information set forth herein isdeemed to be accurate, the authors and commissioning organisation(s) do not accept any liability for the content, accuracy and completeness of that information or for any consequential loss arising from reliance on it. Also, they shall not be held liable for any omissions from this business plan or for any other written or oral communication transmitted in relation to the plan.

The information contained in the plan will require careful scrutiny, verification and due diligence effortsfrom the recipients of the plan. Any person or entity should notrely on the information set forth in the plan as complete. By providing this information we are not giving any form of advice or recommendation and we do not intend you to rely upon it when making (or refraining from making) any decision(s). Professional advice should be sought. In addition, the analyses contained herein do not claim tobe appraisals of the project, assets, or the valuation of any entity.

Furthermore, the potential fulfillment of ‘forward looking statements’ contained in the plan are subject tochange due to cost increases, unexpected events, market shifts, or circumstances that cannot be known at this time. Forwardlooking statements are based on expectations, estimates and projections at the time the statements were madethat involve a number of economic, business, and numerous risks and uncertainties which could cause actualresults or events to differ materially from those presently anticipated. Estimates andprojections are subject to significant uncertainties beyond the control of the authors and commissioning organisation(s). Although such projectionsare believed to be realistic, no representations are made as to their ultimate attainability.

Section 1: Executive summary

This business plan has been written as part of a proposal to seek funding from ….

The business proposal is …

USP/Key selling points include….

The business has a number of objectives including…..

The business is owned by… and will be set up as…e.g. sole trader

The main market segments/are…

XXX will be based at…

XXX will employ

All relevant legal and regulatory issues have been addressed.

It is anticipated that the business will achieve a turnover of £ in year 1, £ in year 2 and a profit of £ in year 1 and £ in year 2

Section 2: Introduction and background

2.1Introduction

Provide a brief introduction to the business plan and the idea, e.g. why the plan has been written, rational for the business idea etc.

2.2Vision, mission and values

Vision

Mission

Values

2.3Aims and objectives

2.4Business details

Name:

Address:

Telephone:

Email:

Web address:

Proposed start date:

Legal status:

VAT registered: Yes/No

2.5SWOT analysis

Table X: SWOT analysis
Strengths / Weaknesses
Opportunities /

Threats

Business plan - Insert Name

Section 3: Service

3.1Product/Service Description

3.2USPs/Key Selling Points

3.3Pricing strategy

3.4IPand legal issues

(If applicable, only include legal issues that are specific to the product or service in this section e.g. IP, quality marks, etc.)

Business plan - Insert Name

Section 4: Market analysis

4.1Market overview

The market is valued at..…(Source, 20xx) and the market is forecasted to grow by x% by 20XX (Source, 20xx). Key market trends include…(Source, 20xx)

4.2Customers

The market segments of XXX are… Table X provides an overview of the number of customers in each of these market segments.

Table X: Number of customers in the market
Market segment / Number / Source

A market research survey of xx potential customers was carried out to identify the needs and wants in the marketplace. Table X provides an analysis of the needs/wants of the key market segments. This is supported by… (State desk research and the findings)

Table X: Customer needs/wants
Market Segment / Needs and wants

The following orders/intentions to purchase have already been made:

4.3Competitors

The main competitors of xxx are shown in table x along with an evaluation of their strengths and weaknesses.

Table X: Competitor assessment
Competitor / Strengths / Weaknesses

Xxx (positioning map, competitor analysis framework) has been used to evaluate the competitive position of xx in relation to the competitors in the marketplace and as demonstrated in fig .x

4.4PESTLE analysis/Market Trends

Table X: PESTEL analysis
Political
Economic
Social
Technology
Environment
Legal

Business plan - Insert Name

Section 5: Marketing strategy/plan

5.1Marketing objectives

The marketing objectives for the project are as follows:

To achieve the following sales/income targets in the first five years:

Year 1 £x
Year 2 £x

To position ….in the marketplace as…
To establish the brand…
To be recognised in the marketplace as a quality provider of …

5.2Marketing strategy

The marketing strategy for the project is based on the STP (Segment, Targeting and Positioning) approach. The proposed marketing strategies, detailing the market segments and targeting approaches, for each of the services are provided below.

Table X: Market segments and targeting strategies
Market segments / Targeting strategies
Segment 1
Segment 2
Segment 3
Segment 4

5.3Promotional plan

Table X provides an overview of the promotional plan. This has taken into account the overall marketing objectives, findings from the market research, market segmentation, targeting approaches and the available marketing budget. This promotional plan combines the use of traditional promotional methods such as flyers along with digital promotional methods such a website, social media and email campaigns. The promotional expenditure and its impact will be monitored and evaluated by using Google Analytics, customer surveys and a sales analysis. The table below summarises the promotional activities, timescales and cost.

Table X: Promotion plan
Promotion Type / Actions / Timescale / Cost
Brand /

Create a logo and a tag line

/ Month 1
Website /

Set up a website using WordPress
Implement search engine optimisation
Provide news and updates on the website

/ Month 1
Monthly
Weekly
Sign /

Sign for the premises
Standalone sign for when premises are vacant

/ Month 1
Month 1
Flyers /

Print and distribute flyers

/ Months 1- 3 and when required
Advertisements /

Advertisements will placed in …

/ Months 1-12
Posters and notices /

Posters and notices will be placed in the ABC Community House, shop windows, community notice boards etc.

/ Months 1-3
Community Newsletters /

Create ad copy and ask local groups to include it in their community newsletters

/ Months 1-3
Ezine, eNews Flash /

Create an Ezine and/or eNewsFlash and distribute them via emails,

/ Months 1-3 and when required
Editorials and PR /

Create editorials for local newspapers etc. and ask if they can do a feature on the project

/ Month 1
MIS /

Use current MIS to promote the services of the project

/ Months 1 to 3 and when required
LinkedIN /

Promote the project through LinkendIn

/ Months 1 to 3 and when required
Facebook /

Create a facebook page

/ Months 1 to 3 and when required
Web listings /

/ Month 1
Emails /

Develop a promotional email and forward to contacts etc. for distribution

/ Month 1
Open day/launch /

Hold an open day/launch and market it through social media and ABC’s networks and contacts. Also, invite key stakeholders

/ Month 1
Total

Business plan - Insert Name

section 6: PEOPLE

6.1Management structure/governance

6.2Organisational structure

6.3Staffing requirements

6.4Volunteers

6.5Training

6.6Professional services

Accountant, solicitor etc.

7.0Operations and Legal issues

7.1Premises

XXX will be based at… The premises… insert details of the premises, e.g. size, special features, security. The local council has confirmed that planning permission had already been approved for the premises to be used for XXX activity. Rent and rates will be charged at £0 per month and the lease is for an x year period.

7.2Vehicles/equipment

7.3Stock/Supplies

7.4Systems

E.g. stock control, quality, production and administration

7.5Work plan and timescales

Table Work plan and timescales
Activity / Dates and timescales

7.6Legal Issues

The main legal issues that XXX will adhere to are:

Insurance - There are significant insurance requirements for XXX. The types of insurance required, vehicle insurance, public liability…

Legal status – the legal status will be……

Planning: The local council have confirmed that planning permission has been obtained to run the business from the premises.

Health and Safety – A risk assessment will be conducted in conjunction with the Health and Safety Executive and a health and safety policy will be developed. Health and safety training will be provided to all staff members.

Disposal of waste: Waste will be disposed of in accordance with environment protection legislation.

Data protection: Customer details will be stored securely in an appropriate way

Taxation: Insert name will ensure the rules for registering for tax, NIC, PAYE and VAT are stringently adhered to and all relevant returns and payments will be made on time.

Section 8: Finance

8.1Funding

The proposed funding for the project is provided in the table X.

Table X: Proposed project funding
Source of Funding / Amount / Status
Grant X
Grant Y
Loan from…

A loan of £0 will be sought from XXX, payable over x months. The total repayments per month is £x (capital repayments £x and interest £x)

8.2Sales projections

A summary of the sales projections is provided below in table below.

The basis for the second year increase in sales is...

Table X: Sales projections
Sales / Prices / Year 1 / Year 2
Units / Sales / Units / Sales
Total

Examples of orders include

8.3Expenditure/costs

Revenue expenditure

Table X provides a summary of revenue expenditure for the 2 years, with more detailed information is provided subsequently. A breakdown of the fixed costs is provided in appendix_. It is expected that the revenue expenditure will increase by approx 3% each year.

Table X: Fixed costs/overheads
Fixed /indirect/overheads / Year 1 / Year 2
Materials/stock
Rent and Rates
Utilities
Staffing
Office/Administration
Marketing
Professional fees
Vehicle expenses
Maintenance
Insurance
Finance
Other
Other
Loan interest
Depreciation
Other
Total / £38,644 / £39,420

Materials/stock……

Rent and rates will be….

Utilities: The total utilities will be and are broken down as follows.

Electricity:
Heat:
Water charges:
Waste disposal and recycling:

Staffing…

Office and administration….

Marketing….

Professional fees

Accountancy and bookkeeping:
Legal:

Membership:

Maintenance: Maintenance will be….and allows for general maintenance, equipment compliance, grounds maintenance etc.

Insurance:

Finance charges:

Loan interest:

Depreciation:

Capital expenditure

The capital expenditure of the business is £X in year 1 and £X in year 2. The proprietor will also invest £X in equipment A breakdown of the capital expenditure and the equipment owned is provided in section XX. The level of capital expenditure is appropriate for the requirements of the business.

8.4Financial projections

Copies of the financial projections are provided in the appendices and summaries of the financial statements are provided below.

Cash flow forecasts

Table X: Summary Cash Flow Forecasts
Year 1 / Year 2
RECEIPTS
Total Funding
Total Sales
Total Receipts
EXPENDITURE
Total Revenue Expenditure
Total Capital Expenditure
Total Expenditure
Net Cash Flow

When providing commentary on the cash flow factors to consider may be:

Cash flow position
Increase/decrease in the cash flow
Need for an overdraft facility?
Is the cash flow seasonal?
Are there key cash flow requirements during the duration of the projection?
Is the cash flow subject to VAT?
Are debtors and/or creditors factored into the cash flow – what are the payment terms?
Can a significant cash surplus be justified?

Profit and loss accounts

Table X: Profit and Loss Accounts
Year 1 / Year 2
Sales
Cost of Sales
Gross Profit
Gross Profit Margin
Net Profit (before Drawings and NIC)
Net Profit Margin (before Drawings and NIC)
Net Profit (after Drawings and NIC)
Net Profit Margin (before Drawings and NIC

When providing commentary on the profit and loss accounts factors to consider may be:

Sales levels
Cost of sales
Debtors and creditors
Profitability
Gross and net profit margins
Industry standards

Balance sheets

Table: Summary Balance Sheets
Year 1 / Year 2
Fixed Assets
Current Assets
Current Liabilities
Working Capital
Long Term Liabilities
Net Assets
Capital and Reserves

When providing commentary on the balance sheets factors to consider may be:

Distinction between the owned and purchased fixed assets
Current liabilities
Current assets
Current ratio
If the net worth of the business is less in yr 2 than in yr 1, explain the reasons for this.
Discuss the balance of debt/equity
Is the balance sheet solvent?

8.5Breakeven

The average annual, monthly and weekly break-even sales are provided in table X. The analysis has been based on 48 weeks at 5 days per week. This break-even analysis includes the depreciation and the cyclical maintenance reserve.

Table X: Breakeven analysis
Breakeven / Year 1 / Year 2
Total fixed costs
GPM
Breakeven sales
Average monthly breakeven sales
Average weekly breakeven sales (48 wks)
Average daily sales (48 wks x 5 days)

8.6Sensitivity analysis

This sensitivity analysis explores the financial situation of the business taking into account the following factors.

Prices are decreased by…
Sales decreased by..,
Costs are % higher than expected
Funding from Grant X is not obtained

The results of the sensitivity analysis (i.e. cash flow forecasts, profit and loss accounts and balance sheets for 2 years) are provided in Appendix _ A summary of profit and loss accounts is provided in tables X.

Table X: Profit and loss account - Sensitivity analysis
Year 1 / Year 2
Sales
Cost of Sales
Gross Profit
Gross Profit Margin
Net profit/loss
Net profit margin