Business Plan

Business Plans.

What is a business plan?

A business plan is a plan that helps an organisation to look ahead, allocate resources, focus on key points, and prepare for problems and opportunities.

Unfortunately, many people think about business plans only when they are starting a new project or applying for a business loan, but they are also vital for running an organisation in order ensure it keeps on track.

What needs to be in business plan?

The process of writing a business plan can feel daunting especially when it comes to financial projections especially in the current economic climate.

The trick is to break it down into smaller, more manageable parts. It is possible to download templates from the internet which may help you but a successful business plan must truly reflect the unique spirit of your organisation so, however tempting it may be, do not just “fill in the boxes” on a form.

A good business plan needs to have the following:

• Executive Summary: A short description of highlights of your plan. (Although this the first item in the document we suggest that you write it last!)
• Description of your organisation: Legal status, background history, track record etc
• Description of your services or product. Focus on service user/client benefits.
• Needs Analysis/Market Analysis: You need to know your target group/market. Focus on your service users/clients needs, where they are, how to reach them, etc.
• Strategy and Implementation: Be specific. Include management responsibilities with dates and budget.
• Management Team: Include backgrounds of key members of the team, personnel strategy, and details.
• Financial Plan: The budget. Include the cash flow, potential profit, break-even analysis and assumptions etc.

What is most important in a business plan?

This does vary depending on the case, but usually it is the details about how you will implement the strategy and the finances, especially the cash flow analysis.

• Implementation details are what make things happen. All your brilliant strategies and carefully typed planning documents are just dreams and pieces of paper unless you assign responsibilities, with dates and budgets. You have to have a process to follow up with those responsible, and track results. Business plans are really about getting results and improving your organisation not just making a good impression on a funder.
• Finances are obviously important and the cash flow is vital and often misunderstood. “Cash” can be confused with “profit”. Profits don’t guarantee cash in the bank. You must take into account when you are likely to incur costs and when you are likely to be paid; lots of profitable companies have failed because of cash flow problems.

You can access support for writing your business plan from HAVS for full details contact 
Gurpreet Sidhu