A business plan is a formal statement that states:

 

Where the business is now

Where the business should go

How the business should get there

 

It should include a set of business goals, strategic plans and action plans. It will also contain background information about the organization or team attempting to reach those goals.

 

Let's start helping you to write a plan by explaining what each section should contain.

 

STARTING POINT - Cover page

The first part of your business plan will involve creating a cover page. This will include:

• Trading name of your business
• Period covered by the plan
• Plan prepared by
• Plan prepared for
• Date of preparation

Contents page
After your cover page, you will have to put together a contents page. This should incorporate:

• Summary of the plan
• Business background: structure and organisation
• SWOT analysis: strengths, weaknesses, opportunities and threats
• The market and marketing strategies
• Strategies for other key areas
• Profit performance
• Financial projections
• Projected operating results
• Projected capital expenditure
• Projected cash flow
• Projected balance sheet
• Business ratios

Executive summary
This draws together the highlights from your completed business plan. It should appear after the contents page at the beginning of your plan. It should be a brief, informative overview and emphasise those factors that will make your business successful.

The completed summary of the plan will probably include the following headings:

Mission statement – your mission statement should answer three questions:

 

What is your business all about?

What are your products or services?

What are your goals and objectives for achieving

Plan results in terms of:

 

Sales

Gross Profit

Net Profit

Cash Flow.

• A summary of the key features of your planned financial position at year-end, particularly with regard to "gearing", the relationship between shareholders' funds and outside borrowings. Show how these will move over the course of the period of your business plan.

Market analysis.

Other strategies (eg production, human resources).

 

Structure and organisation

The purpose of this section is to provide an overview of how the business operates, its key personnel, and how it all fits together.

 

Background

• When was the business established?
• Where is the business located?
• What type of business? Eg:

 

Manufacturing

Retail

Wholesale

Service

• What are the business facilities?
• How many employees?

 

Structure

How is the business structured?

• Company – a proprietary company may have one or more members and is usually formed for the purpose of acquiring profit. It is a complex form of organisation bound by the Corporations Law.
• Sole proprietor – a sole proprietor is the sole owner of the business and has complete control of its operation.
• Partnership – a partnership is the legal relationship of two or more persons carrying on business together with a view to profit.
• Other – other types of business structures include joint ventures, co-operatives, and trusts.

 

Organisation

An organisation chart is a diagram describing the basic roles, responsibilities & reporting hierarchy within an organisation.
Include in your plan an organisational chart showing:

• the relationship between departments
• the key responsibilities of each department
• the number of staff in each department
• any planned changes to the organisation during the period of your business plan
• a brief résumé of key staff to provide an insight into the quality of management.