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Welcome
Business Start-Up Programme
Workshop 4
to the
‘Business Planning’
Workshop Links
Business Planning
Front Page
Executive Summary
The Business
Market
Operations
Finance
SWOT Analysis
Action Plan
The Essentials
Why start a business?
Viability assessment
Marketing Management control
Legal issues
Funding
Marketing
Product & service
Place
Price
Promotion
Finance
Profit & Loss
Cash flow
Balance sheet
Business Planning Workshop - Introduction
Start-up Workshops
Business Plan Action Plan On-going Support
1.The Essentials
2.Marketing
3.Finance
4.Business Planning
5.Bookkeeping
6.Tax & NI
Business Planning Workshop - Introduction
What is a Business Plan?
Details how and why you will run your business
Details your financial forecasts
Details your market research
Explains how many employees you need and when
Is a live document regularly updated
Business Planning Workshop - Introduction
Why a Business Plan?
An accurate plan ensures your idea is viable
Demonstrates that you know what you’re doing
Shows how you will make a profit
Gives investors confidence
The Business – Reference Information
Business Planning
Start-up Workshops
Business Plan
Action Plan On-going Support
The Business
Organisation & Control
The Market
Finance
SWOT
Risk
Action Plan
Business Name: ……………………………………
Director/owner name……………………………………
Address: ……………………………………
……………………………………
Telephone ……………………………………
Legal status……………………………………
Company Number……………………………………
VAT Number……………………………………
Insurance Details ……………………………………
Employee Liability……………………………………
Public Liability ……………………………………
Other ……………………………………
Telephone ……………………………………
Email ……………………………………
Website ……………………………………
Bank ……………………………………
Adviser/Accountant……………………………………
The Market – Introduction
Business Planning
Start-up Workshops
Business Plan Action Plan On-going Support
Executive Summary
The Business
Organisation & Control
The Market
Finance
SWOT
Risk
Action Plan
Objective To prove the viability of your sales and profit forecast.
Step 1
Define your product and service offer.
Step 2
Establish the demand in the
market place for your product and
service. Step 3
Confirm your price
structure.
Step 4
Promote your business to get
and keep customer
The Market – Product & Service – Competitor Survey
Selling Price:
Approvals:
Warranty:
Promotional Methods:
Warranty Comparison of Warranty Offers
Competitor 1 Competitor 2
Competitor 3
Your Business
Approvals Status Comparison of Approvals
Competitor 1 Competitor 2
Competitor 3
Your Business
Promotion Method Comparison of Promotional Methods
Competitor 1 Competitor 2
Competitor 3
Your Business
Product Description
Comparison of Selling Price
Competitor 1 Competitor 2
Competitor 3
Your Business
Objective To use competitor information to help develop your marketing plan
Compare pricing, approvals, warranty offers promotional methods and strengths and weaknesses.
Fill in the tables for ease of comparison
The Market – Product & Service – Product Offer
If you have a skill gap identify it in your action plan and describe what you are to do to
bridge the gap
Objectives To have a clear statement of your product offer and the skills needed to supply your customers. Enter your details following the examples shown in the table below which could be for a landscape gardener Include product offers that you are to offer now and in the future.
Details of Product Offer Timescales Skills needed
DesignBuilding/pavingInstallation of electrical powerHorticultureGarden maintenance
NowNow6 monthsNowNow
Design softwarePlanning LegislationLegislation, approvalsPlanning (Listed Trees etc)Knowledge of plants etc
The Market – Product & Service – Service Offer
Details of Service Offer Customer RequirementResponsiveAccessibleReliableFlexibleValue for moneyWarranty
Quote request followed within 24hrs24/7Turn up & deliver as promisedExceed their expectationsQualityPeace of mind
Objectives To have a clear statement of your service offers and how they will met customer requirements Enter your details following the examples shown in the table below which could be for a landscape gardener
The Market – Place – Customer Profile & Expectations B2B
Profile Customer Research Areas
Type/SectorAnnual SalesProfitability/credit ratingNumber of employeesPremisesStandard Industry Classification (SIC code)
Customer Expectations Research AreasAccreditationsContractsLicencesStandardsBuying behaviourLegislationElectronic trading
ObjectivesTo demonstrate the areas of research used to profile your customers
The Market – Place – Customer Profile & Expectations B2C
Profile Customer Research Areas
Type/SectorDisposable IncomePremises
Customer Expectations Research AreasAccreditationsContractsLicencesStandardsBuying behaviourLegislationElectronic trading
ObjectivesTo demonstrate the areas of research used to profile your customers
The Market – Price
Considerations Add a premium for a Niche product or service Know what the customer is prepared to pay. Keep track of competitor pricing and the going market rate Know your break even and cover costs Top end of the market price implications
Enter the percentage difference between you and your competitors average selling price
Competitor 1(Difference (%)
Competitor 2(Difference (%)
Competitor 3(Difference (%)
Competitor 4(Difference (%)
The Market – Promotion
ObjectiveDefines the promotional methods to be used to generate sufficient enquiries to meet your sales forecasts.
Organisation & Control - Introduction
The Business
Organisation & Control
The Market
Finance
SWOT
Risk
Action Plan
Structure
Suppliers
Measuring performance
Management information systems
ObjectivesTo show how you will control your business and achieve your sales and profit targets
Organisation & Control - Structure
Job Title Name Responsibility
Provide summary background and experience of principals or attach CV
ObjectivesTo provide information on the roles, reporting relationships and skills of the people who are to work in the business.
Step 1: Show Structure
Name / Job Title
Step 2 : Show Responsibilities
Name / Job Title
Name / Job Title
Name / Job Title
Step 3 : Show Career History
Organisation & Control - Suppliers
Supplier Purchased Item Cost (£) Selling Price (£)
Gross Profit (%)
Objectives To demonstrate that you have identified the main suppliers for your materials and that you can purchase at prices that are included in your financial forecasts
Enter details of suppliers and purchased items using the table format below.
Organisation & Control – Measuring Performance
Request for quotation(RFQ)
Prepare an estimate & submit a quotation
Deliver to customer
Complete work
Receive an order
Prospect for work
Send invoice
Receive payment
Sales & Marketin
g
Operations
Finance & Admin
Number and value of enquiries Source of enquiries Average time to respond to enquiries Conversion rate enquiry to order. Frequency & value of orders Sales analysis
Material ordered on time (%) Material delivered on time (%) Orders started on time (%) Orders delivered on time (%) Actual ‘v’ estimated costs Cost of quality
Budget ‘v Actual P & L Stock analysis Value of debtors & creditors Average debtor & creditor days Cash at the bank
Plan work
Employees: Budget ‘vs’ actual numbers With contract (%) With performance targets (%) With training plans (%) Absenteeism (%) Staff turnover (%) Recruitment plans
Objective: To identify the performance measures to be used to control my business.
Organisation & Control – Management System
Request for quotation(RFQ)
Prepare an estimate & submit a quotation
Deliver to customer
Complete work
Receive an order
Prospect for work
Send invoice
Receive payment
Sales & Marketin
g
Operations
Finance & Admin
Plan work
Objective: To confirm the performance measures and systems to be used to control your business.
Reporting Systems Manual
Computer based
DocumentationTerms & conditions Quotation form Purchase order form Sales invoice form Receipts form Completion of work form
Sales & Marketing
Operations Finance People
Enter Performance Measures
Finance - Introduction
The Business
Organisation & Control
The Market
Finance
SWOT
Risk
Action Plan
Start-up costs.
Profit & loss
Cash flow
Investment Profile
ObjectivesTo confirm the viability of your profit and cash flow forecasts
Finance – Start-up Costs
Item Existing To Buy Cost (£)
Capital Items:EquipmentSoftwareToolsVehiclesProperty
Total Cost (existing)Total Cost (to buy)
Working Capital:InsuranceWagesMarketingStockLegal Fees
Total Cost (existing)Total Cost (to buy)
Objective To identify the items and costs needed to start-up the business.
Enter each item under the relevant heading using the examples shown below for reference.
Finance – Profit & Loss
Market research Competitor survey Customer questionnaire Market testing. Existing clients
Researched direct and overhead costs. Depreciation rate. Loan interest repayment rates. Discount for volume
Sales Examples
Costs Examples
Objectives To confirm the assumptions used to justify the credibility of your profit & loss forecast using the relevant examples shown below for reference; Provide the details to support each example used.
Finance – Cash Flow
Examples Average debtor & creditor days agreed with customers and suppliers
Schedule for VAT payment.
Investment profile agreed with investors.
Objectives To confirm the assumptions used to justify the credibility of your cash flow forecast using the relevant examples shown below for reference. Provide the details to support each example used.
Finance – Source of Funding
Sources of funding Amount (£)Personal Loan
Bank Loan
Grants
External Investor
Other
Total
ObjectivesTo identify the sources of money to be obtained to fund the start up of the business.
The amount of money should cover the total start-up costs.
Enter the value and source of each type of funding using the examples below as references.
Finance – Cash Flow – Investment Profile
Investment Value (£) Investment Profile (Months)
1 2 3 4 5 6
Expenditure
Computer
Office Furniture
Stock
Total
Income
1000
2500
1500
5000
1000
1500
1000
4000
1000
2500
Income:
Own Money
Bank loan
Grant
Total
2000
2500
500
5000
2000
2500
4500
500
500
Net 0 500 0
ObjectivesTo prepare a cash flow projection based upon the timescales of start-up expenditure and the income of funding. Include the profile in the business cash flow forecast.
SWOT Analysis – Introduction
The Business
Organisation & Control
The Market
Finance
SWOT
Risk
Action Plan
Objective
To Introduce the rules involved in carrying out a SWOT analysis
Strengths, Weaknesses, Opportunities & Threats
Identify the aspects of your business plan for each SWOT category that are important in meeting your sales and profit targets
Strengths and weaknesses relate to the internal aspects of your business.
Opportunities and threats come form outside your business.
Cannot have the same aspect in more than one SWOT category.
SWOT Analysis – Results
Strengths Weaknesses
Opportunities Threats
ObjectivesTo review the business plan content and identify the strengths weaknesses, opportunities and threats. Review the list of items shown below and enter them into the appropriate box. Add items relevant to your business that are not on the list
SWOT Items Product offer Service offer Sales management skills Financial management skills Time management skills Management team Market knowledge Size of customer base Strength of competitors Product price Marketing budget. Material suppliers Documentation Management information system Cash Business support professionals Government legislation
Risk & Contingency
The Business
Organisation & Control
The Market
Finance
SWOT
Risk
Action Plan
Risk Contingency
Shortfall in sales forecast Escalating costs Absence of key employees. Government legislation
Monitor sales trends and manage costs Set up standard costs & monitor trends Set up insurance Join Chamber of Commerce
Objective To demonstrate that you have thought about the main risks that could prevent you from successfully implementing your business plan and have contingency plans in place to support success. Enter the risks and contingencies in the table using the following examples for references
Action Plan
The Business
Organisation & Control
The Market
Finance
SWOT
Risk
Action Plan
Action Responsibility Finish Date Cost (£)
Attend sales training course Set up management control system Deliver marketing campaign Join Chamber of Commerce
Me Business partner Me Me
31.10.08 31.10.0830.9 0830 9.08
£125 £800£500 £150
Objective To create an action plan to strengthen the weakness, achieve the opportunities and off-set the threats resulting from the SWOT analysis
Enter the actions in the table below using the examples for reference purposes.
What Next?
1. Complete the business plan
2. Complete the assigned actions
Executive Summary
Executive Summary
The Business
Organisation & Control
The Market
Finance
SWOT
Risk
Action Plan
One page summary of the business plan content: Outline of what the business does
Summary of ownership
Summary of market and its sales potential
First years sales and profit objectives.
Statement of start-up costs and fund requirements
The Market – Market ShareEnter information using your information following the example below:
Annual Value of orders needed to meet sales & profit targets (From viability assessment): No. of orders 50 Average order value (£) £100 Annual value of orders needed = No. of orders x Ave. order value £50000
Potential annual value of orders in catchments area (From market research): Catchments area National Customer profile B2B SIC 123 Estimated no. of customers meeting profile 500 Average annual frequency of purchase 10 Average order value (£) 100 Potential Value = No. of customers x Frequency of purchase x Ave. order value (£) £500000
Estimated potential value of orders/competitor Potential value of orders in catchments area £500000 Estimated no. of competitors in catchments area 5 Potential Value/ competitor = Potential order value ÷ no. competitors £100000
Estimated market share Estimated potential value of orders/competitor £100000 Value of orders needed to meet sales & profit targets £50000 (Value of orders needed ÷ Potential order value) x 100 5%
Keep in touch!
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www.linkedin.com
Join the ‘Business Start Up Group’ and then join ‘The
Workshop Group’ subgroup to keep in touch!
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