| All businesses regardless of size should have a | | | | What licences /permits are required? |
| business plan. It is the blueprint for your business. It | | | | What business registration, taxation registration is |
| outlines the steps to starting a small business and the | | | | required? company registration. |
| giant leaps to start a large multi-national company. A | | | | What Management capabilities do you have? |
| business plan remains a WIP (Work In Progress) for | | | | Who will fill the key positions in your business? |
| the life of your business, changing and evolving through | | | | What professionals will you need? Who will they be? |
| time, reflecting changes in both internal and external | | | | Accountant, solicitor etc. |
| factors. | | | | What Insurances are required? The most common |
| There are seven essential sections of a business plan | | | | include general, fire, theft, public/products Liability, |
| numbered below. Answering the questions in each | | | | workers compensation. Also consider personal injury |
| section as dot points or sentences and you will have a | | | | and income protection for yourself. |
| workable business plan and a customized list of the | | | | 5. OPERATION PLAN |
| steps to starting a small business. | | | | Will you employ or hire contractors? |
| 1. BUSINESS GOALS | | | | What procedures will you need to develop to |
| What service and or product are you selling? | | | | effectively and efficiently operate your business? |
| What is your USP (Unique Selling Point)? | | | | What suppliers will you need? Who will they be? |
| Why will customers choose to come to you rather | | | | Will you lease or purchase your business premises? |
| than your competitors? | | | | What plant and equipment will you require? Will you |
| What are your income goals and in what time frame | | | | need a motor vehicles, tools, machinery, computers |
| to you hope to achieve them? | | | | etc.? |
| How many years would you like your business to be | | | | What recording keeping system will you require and |
| operational? | | | | use to monitor performance and taxation obligations? |
| 2. MARKET RESEARCH AND ANALYSIS | | | | 6.FINANCIAL PLAN |
| Is there a market for your business? Who are they? | | | | How much money is needed to finance the start up of |
| What reports and or statistics are available to help you | | | | your business? |
| understand your market? | | | | How will you fund it? Will you borrow or provide the |
| Undertake a SWOT (Strengths, Weaknesses, | | | | capital (money)? |
| Opportunities, Threats) Analysis | | | | Financial Analysis - project the profit and loss of your |
| Internally - What strengths should you build on? What | | | | business over the next year or so. |
| weaknesses should you overcome? | | | | Cash Flow Analysis - project monthly flow of cash in |
| Externally - What opportunities should you explore? | | | | and out of your business? Will you have enough? |
| What potential threats should you manage? | | | | Balance Sheet - a snap shot of your business at a |
| 3. MARKETING PLAN | | | | point in time, showing assets, liabilities and owners |
| What is your market? Consider the size, geographic | | | | equity. |
| location, demographics and trends? | | | | Break-Even Point Analysis - How many sales are |
| Who are your competitors? How do you compete on | | | | required to cover costs? |
| price and quality? | | | | 7. ACTION PLAN |
| How will you advertise/promote your business? Will | | | | The task "To Do" list to put your business plan into |
| you use flyers, television, website etc.? | | | | action and as such the next steps to starting a small |
| How will you approach customer service? Is it | | | | business. This should include time frames and who will |
| important to you? Is it important to your customers? | | | | be responsible for each task. |
| What is the life cycle of your product? Is it seasonal? | | | | When establishing your business plan be realistic about |
| Are you selling "warm woolies" that won't have a | | | | what you can achieve and also the challenges all |
| market in summer? Are you selling "2009 novelty | | | | businesses encounter. Business plans can be very |
| mugs" that won't have a market in 2010? | | | | simple and very complex, I have tried to give you a |
| 4. MANAGEMENT PLAN | | | | guide somewhere in the middle. Don't be put off if you |
| What legal structure will your business take? The most | | | | can't answer ALL the questions, be thorough but don't |
| common are sole trader/proprietorship, partnership and | | | | spend too much time making in perfect, remember it is |
| proprietary limited company/corporation? | | | | a WIP! |