Business Planning

• what is a business plan?


  a document that proposes how an entrepreneur will set up their business
• what does a business plan contain?

  1. overview of the business idea
  2. details of the good/service
  3. aims and objectives
  4. analytics of the market
  5. financial forecast
  6. how the business will be financed
  7. competition analysis
  8. key opportunities and threats
• why do you need a business plan?

  • helps determine the amount and type of finance needed
  • helps investors asses the risk and wether they should help fund it or not
  • helps demonstrate the viability of the business
  • helps demonstrate how likely the business is to be able to repay the loan
  • shows the business has considered factors necessary for success
  • could allow the business more access to sources of finance
  • could lead to a lower interest rate
  • may make an investor agree to a smaller percentage of the business
  • NOT ALL SOURCES OF FINANCE NEED A BUSINESS PLAN