Business Basics
INTRODUCTION TO
BUSINESS PLANS
Business Plans
 Who is it for?

Investors

You
 The three questions

Where are we now?

Where do we want to be?

How are we going to get there?
Business Plans
 What goes in a business plan?

Executive Summary

Description of the Company

Products/Services

Management Team

The Market & Competition

Financials

Exit Strategy (if appropriate)
The Executive Summary
 The ‘Trailer’
 A summary of what you do and how you’re doing it
 Short, punchy, attractive
 Make the investor think:

Feel the pain!

Wow – what a solution!

Isn’t this market HUGE?!

Would you look at the size of that profit!
Business Plan Bottom Line
 You’re presenting this to
an audience:
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


Can they understand it easily?
What questions will they ask?
Will they want to know more?
Will they want to invest in it?
 There is no formal
structure for business
plans – lead with whatever
is the most important
factor
Critical elements
 In the order of the most important to your venture
 The Market

Market analysis – size/competitors/scale of opportunity
 The Return on Investment (ROI) – and Exit Strategy

Financial forecast – when will they make their money back and
with what multiplier?
Critical Elements
 The Team

Skills

Previous experience

Commitment
 The Product/Service

Unique Selling Point (USP)

Business & Sales development strategy
Typical Mistakes
 Lack of firm orders & endorsements from real







customers
IP not protected
Lack of credible market research
Failure to identify USP
Failure to identify exit routes
Lack of history – poor evidence of trading history
Lack of detailed finances – costs, margins, breakeven
Lack of evidence about the team’s experience
“Learn by Walking”
Good books
 ‘The Definitive Business Plan’ – Richard Stutely
 ‘The New Business Road Test’ – John Mullins
 ‘The Beermat Entrepreneur’ – Mike Southon
Useful websites
 www.businesslink.gov.uk
 www.businessbasecamp.co.uk
 www.nesta.org.uk
 www.swain.org.uk