A business plan is a report that outlines a company's marketing strategy, operations, and financial projections. It helps business owners clarify their objectives and determine what needs to be done to achieve them. Developing an accurate business plan is essential for obtaining funding from lenders and for effectively managing the business over time. However, business plans often underestimate costs and are overly optimistic about sales forecasts and financial projections. A successful plan includes details about the business and owners, objectives, marketing, production, financial forecasts, long-term plans, and a SWOT analysis.

1. Developing Business Plans
Bus 1

2. Business Plans
A Business plan is a report describing the marketing strategy,
operational issues and financial implications of a business
start-up.

3. Business Plans

4. Benefits
• Helps clarify objectives
• Enables owners to know exactly what needs to be
done in order to meet their objectives
• It is essential for persuading lenders to invest capital
• It is a valuable tool to help in the running of the
business, it is not just for banks/lenders

5. Problems
• Must be accurate and realistic
• Many underestimate costs
• They can often be over optimistic
• Sales forecasts can be unrealistic

6. Content
Details about the business, personal information
Objectives
Marketing Plan
Production Plan
Fixed assets, financial forecasts, details of
finance needed and repayment, collateral
offered
Long-term plans
SWOT analysis

7. Sources of information and guidance
• Traditional sources- bank managers or accountant
• Business Link
http://www.businesslink.gov.uk/bdotg/action/home
• Local enterprise agencies and local trade associations
• The Prince’s Trust http://www.princes-trust.org.uk/
In 2005 the Annual Small Business Survey suggests that 26% of
new businesses had not sought advice from anybody before
starting up! A further 22% only consulted friends and families