new business start-up? have found premises and am building my business plan...?

Question

I have found a massive gap within the market place that i now know i can exploit within the retail sector. i have found some local premises and will also be creating an online website business to. my main concern is building a business plan good enough so that my bank will help me financially, or i do have the possibility of family member's investing also. can i have some thoughts/help/guidance from people who have done start-ups? I believe that within the first 12 months of trading, I could have a potential turnover of £250,000, with a net profit of £75,000

Answer 1

The business plan consists of a narrative and several financial worksheets. The narrative template is the body of the business plan.

The real value of creating a business plan is not in having the finished product in hand; rather, the value lies in the process of researching and thinking about your business in a systematic way. The act of planning helps you to think things through thoroughly, study and research if you are not sure of the facts, and look at your ideas critically. It takes time now, but avoids costly, perhaps disastrous, mistakes later.

This business plan is a generic model suitable for all types of businesses. However, you should modify it to suit your particular circumstances.

You will be judged by the quality and appearance of your work as well as by your ideas.



Here are the headings to consider :

I. Table of Contents

II. Executive Summary

III. General Company Description

IV. Products and Services

V. Marketing Plan

VI. Operational Plan

VII. Management and Organisation

VIII. Personal Financial Statement

IX. Startup Expenses and Capitalisation

X. Financial Plan



Good luck, do not under estimate the advantages of professional help, especially in the beginning, but finance institutions also like to see some of your own input in the presentation.

Answer 2

Banks typically may lend up to 50% of required funds if the business is judged as sound and likely to be secured against assets of some kind (house etc). In the current climate they may well review their lending criteria usually downwards. The business would need a robust business plan and cash flow forecast based on realistic assumptions. This is where most propositions are blown apart. Borrowing from friends and family is always an option but also consider the relationships if the business should go wrong. Funding is also an option but in my experience, unless you're very lucky, rarely provides much more than VERY LIMITED assistance. Any borrowing of course adds to the liabilities by way of interest that needs to be repaid as well as the capital sum. Your financial projections sound optimistic and if proved correct could be the basis for a substantial business - although I obviously don't know the background. Anyhow, plan well and good luck for success.



Qualified Business Adviser

Answer 3

I would ask your family for help if you feel you can. Have you also thought about the contingencies etc? I wanted to start up business like you, but the banks basically told me to go away because I was a single mum. However, I still went for it and got what I wanted, so just keep pushing for what you want. If you want me to have a look at your business plan to give you some pointers email me. I am willing to help you.

Answer 4

There are some agencies around that will help with business plans (example Cooperative development agencies, business link, etc)



Look on you local council website as they will probably have links to such services - if not try the local trading standards department who may have information on them. Try http://www.bllondon.co.uk/ for information and www.tradingstandards.gov.uk for lealflets on legal requirements (e.g. distance selling)