The art of writing a good business plan (Lloyds TSB)
posted on 07-Aug-2009
The art of writing a good business plan
Your business plan is an essential document which will help you secure the financial support you are looking for to set up or grow your business. It should also be a working document to benchmark where the business is against where you expected it to be. It can help you identify trends and opportunities in your business and it should be updated regularly as your business develops.
As this is an important document you must take ownership and prepare it yourself. There is however help available to assist you. Banks will have templates for you to use so that you cover all the areas they are looking for. Accountants can also assist with valuable input into the plan particularly with the financial projections.
Your plan should contain relevant information to assist the lender in assessing your request for finance. Keep the document punchy and ensure you grab the bank manager's attention so that they want to lend to your business. Writing a good plan is only half the battle, you then need to present the plan to the bank manager or investor. It is always useful to practice the delivery of your pitch beforehand and ensure that the lender has a copy of your plan before your meeting. Expect to be challenged and to be asked questions about all aspects of the plan.
Each business plan is individual and unique to that business. The areas you need to cover are listed below:
Executive Summary - Brief details of requirements and key information
Objectives - Short / Medium / Long term / Exit strategy
Franchise background - Brief history, Training, Support
Franchisee background - Experience, Skills, Attributes
Local Market Research - Competitor analysis, Size of market, Potential customers
Trading History - Past performance, How business was valued
Operations - Premises, Staff, IT, Vehicles, Equipment, Suppliers
Marketing plan - How to sell, Who will sell, Advertising, Pricing
Financial requirements - Full breakdown of costs & working capital
Personal Assets / Liabilities / Income / Expenditure - Detailed breakdown
Security available - Value of asset / Prior Mortgages / Ownership details
Financial Projections - Cashflow / Profit & Loss / Assumptions used
SWOT Analysis - Strengths / Weaknesses / Opportunities / Threats
The value of a good business plan can not be overstated. The plan should demonstrate that you understand the business opportunity and the local market for your product or service.
Richard Holden
Lloyds TSB Commercial
