At Compass we regularly speak with potential and young directors who have a business opportunity they wish to pursue. Using our experience, we have been able to provide the finance packages and simplify the legal requirements.
One of the most important factors in starting a business is putting your thoughts and ideas down on paper. At Compass, we can assist in this regard, by providing a template for your business plan and financial forecasts.
Provide a brief synopsis of the key points of your entire plan. It should include highlights from each section of the rest of the document – from the key features of the business opportunity through to the elements of the financial forecasts.
Its purpose is to explain the basics of your business in a way that both informs and interests the reader. If, after reading the executive summary, an investor or manager understands what the business is about and is keen to know more, it has done its job.
It should be concise – no longer than a page at most – and interesting. It’s advisable to write this section of your plan after you have completed the rest.
This part of the plan sets out your vision for your new business and includes who you are, what you do, what you have to offer and the market you want to address.
Start with an overview of your business:
Then describe your products or services as simply as possible, defining:
Remember that the person reading the plan may not understand your business and its products, services or processes as well as you do, so try to avoid jargon. It’s a good idea to get someone who isn’t involved in the business – a friend or family member perhaps – to read this section of your plan and make sure they can understand it.
In this section you should define your market, your position in it and outline who your competitors are. In order to do this you should refer to any market research you have carried out. You need to demonstrate that you’re fully aware of the marketplace you’re planning to operate in and that you understand any important trends and drivers.
You should also be able to show that your business will be able to attract customers in a growing market despite the competition.
Key areas to cover include:
This section should describe the specific activities you intend to use to promote and sell your products and services. It’s often the weak link in business plans so it’s worth spending time on it to make sure it’s both realistic and achievable.
A strong sales and marketing section means you have a clear idea of how you will get your products and services to market.
Your plan will need to provide answers to these questions:
Your business plan needs to set out your own background and skills and the structure and key skills of both your management team and your staff. It should identify the strengths in your team and your plans to deal with any obvious weaknesses.
If you’re looking for external funding, your management team can be a decisive factor. Explain who is involved, their role and how it fits into the organisation. Include a CV or paragraph on each individual, outlining their background, relevant experience and qualifications. Include any advisers you might have such as accountants or lawyers.
If you’re looking to satisfy your bank manager or other investors, you need to demonstrate that your management team has the right balance of skills, drive and experience to enable your business to succeed. Key skills include sales, marketing and financial management as well as production, operational and market experience.
Give details of your workforce in terms of total numbers and by department. Spell out what work you plan to do internally and if you plan to outsource any work. Other useful figures might be sales or profit per employee, average salaries, employee retention rates and productivity.
Your business plan also needs to outline your operational capabilities and any planned improvements. There are certain areas you should focus on.
A set of financial forecasts you will need to provide in support of a business plan. Please see our downloadable spreadsheet that provides an easy structure to help you put this together.