Business Plan - help

[biomed86]

Hi guys

Hope everyone is having a nice day.

I would like to get some help and advice and I guess you could say a little “push” to get me started….please

I need and want to write a business plan for my business idea, both for myself and to help with getting funding. I’ve read up online from places such as business link and similar sites on how to do this, and have looked at some sample plans on bplans.co.uk.

All this has been very helpful and given me a good idea about what should be in a business plan, and how to go about writing one…but for some reason, when it gets down to it, I guess you could say I’m just afraid of getting it all wrong!

I think my main issue is carrying out and analysing market research, I’m just not sure how much depth I need to go into with this. Also, getting the financial statements right, start up costs, forecasts for the business etc - I feel like I’d be guessing.

I would be really grateful if anyone could give some good pointers (mainly on market researching and identifying competitors, and how to do financial statements) on writing a business plan.

Thank you very much

Yvonne

 

[Greensand Ridge]

I started my business last year and even though I didn't need funding I wrote a business plan. I found the Business Link website most useful for format and content.

Of the things you are looking for: -

Market Research - this could be the tricky one. My experience is that it is quite difficult to find free, industry specific market data.

Competitors - I did this through Google/Yell/local Chamber of Commerce.

Financial statements - It would be helpful (though not essential) that you have Excel. Have you used it? Have you got it? The key is to not be too bullish in your first year. Unrealistic forecasts lose you credibility with the banks immediately.

I could help you with the whole thing but especially the financial statements if you aren't able to manage it yourself and you are prepared to invest a small amount to get it right.

What kind of business are you looking at?

 

[Findermonkey]

I'd say in terms of the depth of your market research, the more you do the more acurate your figures will be. Regards starting your business plan, I think the best way would be to just start it, make that first draft and get some figures down. I played about with my business plan for months before showing it to a friend who is a bit of a high flyer and very experienced regarding business plans, he recommended quite a few changes and I carried on with this approach until I had something I was happy with, which as it turns out is saved on my pc as business plan version five. A quick look as just revealed that my figures on my first business plan are quite different to the ones I eventually took to the bank but you've got to start somewhere. Hope that helps

 

[biomed86]

Thanks to you both for your advice, greatly appreciated!

greensland - My idea is for an information and resources website. I don't feel i will need a large amount of funds but as a student, i have very low start up cash, so might need some help. I have all the plans for the website ready pretty much, just need to get things started. I have tried to do most things myself with regards to the site but I think I've got to the point where I have to be realistic and get some professionals inolved! Also want the business plan just for my own needs really, to give me more direction and give me a good structure to work to.
I do have excel and can use it fairly well (at least I think I can, but I'm sure I still have lots to learn with that to!)

How long would you say it took you to have a finalised Buiness Plan done?

thanks again

 

[Greensand Ridge]

I didn't do my plan in one go. Like you I pulled together the different elements in advance. I probably spent two days getting my competitor information together, a day doing my financials and two days writing the body of the plan. So about a week of solid work.

I found the whole thing a really useful exercise because it organised my thoughts about exactly what it was that I was offering and how I was going to market myself.

In retrospect the marketing side is the one that has changed most. I'm learning every day the best ways of increasing my profile and meeting people. The costs of advertising and marketing will probably be one of the hardest things to get right in your plan but you mustn't be nervous about making mistakes.

In your case you also need to make sure you understand how you are getting your income.

Hope this helps

 

[AMK & Co Accountants]

Hi yvonne

Further to your post with regards to your business plan, you should note that every business plan is different, some are very extensive and others not so. The important thing to remember is that the person who will be looking at your plan needs to get some feel for your business, its goal, its requirements, your market etc.

Having prepared so many busniess plans i can state that it does take some time to draft out and then finalise.

I would suggest you to prepare a draft copy and have it reveiewd before you finalise and forward it on.

I would be happy to review your plan, and should you want any further specific advice or information feel free to pm me.

Best of luck

Abdul Majid

 

[biomed86]

Thank you for your input amk

 

[Strategist]

Hi Yvonne,
I have been advising people on their business plans for years and have written many.
The first thing you need to do is decide why you need the plan. This will appear like a slightly odd question but it is relevant. If it is just for your own guidance, then perhaps just one page with key bullet points will suffice. If you are looking to raise money then a plan to raise a loan will be very different from one that is looking for equity investment. It is possible that you are suffering from a touch of information overload. You have (rightly) researched what you need to do but all that stuff is obscuring what you ultimately want to do. Unless you are in an absolute rush, I would take a short break from this, perhaps just jotting down a few notes now and then. In a week or so's time, start to put the plan together. Use the following headings to start with (you can always expand it later:
Management - a bit about you, the relevant skills you will bring and what you will do in the business (as opposed to outsourcing stuff like accountancy)
The business idea - what it is you will be doing
Operations - the logistics of how and where the business will operate
Marketing - who are your customers, how will you find and retain them, how much will you charge them
Finance - NO ONE EVER GETS THIS RIGHT IN A BUSINESS PLAN - so don't worry. Just look at what it wil cost you to set up and then esimate what you think you will be able to bring in given various scenarios and deduct what you think it will cost you to bring in the customers that will part with the cash

And that's it. Just whack down a couple of paras in each section and you will have something half decent.

 

[biomed86]

many thanks strategist - i think you're right, i have had an information overload!

I need the plan both for myself and for fund raising. I had an original document which set out my ideas and plans but after researching business plans, I need a complete revamp for funding.

I think i'll take your advice, have a break to let the information settle in my head, then tackle it again with a fresher mind.

thanks for everybody's input and advice, been great. More is always appreciated too

 

[bobgrantham]

Have you looked at the articles on bplans.co.uk also ?

Some of them specifically deal with the issues you are mentionning including sales forecasting.

FYI Business Plan Pro has an in built plan checker that flags any errors with financials.

Overall I agree with earlier comments, get writing, get a draft done and then sit down with someone and work through it. Good luck

 

[FocusZenith]

Hi Yvonne

In terms of market research, if you want to have a quick chat on the phone I'll try and point you in the right direction.

Good luck with the plan.

Laurance

 

[biomed86]

thanks Laurance, I have you details and will give you a call early next week if thats ok?

 

[DanMartin]

The following articles on UK Business Forums' sister website BusinessZone.co.uk will be useful:

How to write a good business plan
The importance of business planning
Securing start-up funding: What your bank is looking for

 

[biomed86]

Hi everyone,

Sorry to dig this topic up!
I managed to draft out a short plan for my business and am happy I finally got something down, even though it doesn't seem to be very good at all!
I had a few more questions and would be grateful for any help:

In the section where I talk about my major competitors - I have included what I feel are the major players. Since they are all websites, the types of things I have looked at are site traffic analysis, rankings etc. I'm not too sure how to get data on the revenue of each competitor, and since the product is free information, not entirely sure if this is necessary? I don't feel revenue is the main objective of the site I am planning in terms of what I am getting from visitors, more to become a popular portal for information. Also, how would I quantify percentage market share for competitors etc?

In my start-up costs, I'm having trouble putting a value to how much advertising would cost, things like pay per click, SEO, how much would be an average figure that a site would spend? I know the answer to this is probably "it varies" but for a small business just starting out, could anybody give me an idea of what a good amount to spend would be?

Lastly - still don't really hae a clue how to work out things like cashflow projection, profit and loss, and balance sheets....so sorry guys, I know it's probably second nature to many of you out there but I would really appreciate a helping hand!

Thank you so much!

 

[Jezclayton]

If you're struggling, why not reverse the whole process and start by identifying your ultimate goal and then work backwards through the steps that will enable this to be achieved.

For instance, your initial goal might well be to provide sufficient income to remain solvent. From this you can calculate the profit required, costs likely to be incurred, turnover required, market potential, positioning in market etc.

 

[maxine]

Lastly - still don't really hae a clue how to work out things like cashflow projection, profit and loss, and balance sheets
quote]

Dont worry about that - the terminology is the most daunting. If you take the approach of building up to it from Sales Revenue - just work out what you think you will sell based on your pricing by month for 12 months and then work out how much it will cost you to get those sales along with other costs and this will give you your profit and loss.

Your cashflow forecast is different in that you need to consider when you will actually have payments received and when you will be making payments out. I would also suggest that you have some numbers to accompany the sales revenue forecast to work out things like how many customers you will get from each sales/advertising channel such as PPC and what the order values will be. It is guesswork but if you try to make it your best guess then that is pretty much all you can do. Your market research will help to firm up on those numbers when you begin asking people how much they would pay for things and where they would look to purchase.

Hope that helps

 

[biomed86]

thanks jez and maxine for your helpful tips!

 

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