| So you have chosen your desired business, you | | | | to secure equity finance then your business |
| have found the perfect location and you have | | | | plan needs to explain why current resources, |
| decided exactly what you want from your new | | | | upcoming growth opportunities and sustainable |
| venture. Sounds like you are part way to | | | | competitive advantage will lead to a high |
| making your dream of owning your own business | | | | valuation. |
| into a reality. So what's next? Your formal | | | | |
| statement and set of business goals of | | | | In order to attain any form of business |
| course. | | | | start-up finance you will need to have a well |
| | | | thought out and structured business plan. |
| I am indeed referring to your business plan; | | | | This is due to the fact your business plan |
| the most important document you will produce | | | | will demonstrate to a potential investor or |
| to do with your business. Your business plan | | | | lender whether your venture has the potential |
| will record everything that you are planning | | | | to succeed. They will want structured and |
| to achieve with your business and how you | | | | realistic evidence that you can make your |
| intend to do this. It acts as your decision | | | | business work. Without this a lender or |
| making tool and should be realistic in terms | | | | investor will not give you the start-up |
| of what you are going to do with your | | | | finance your business needs to succeed as |
| business. | | | | they won't want to take the risk. |
| | | | |
| There is no fixed content to a business plan; | | | | Your business plan will need to show the |
| you don't have a list of what has to be | | | | strategy, marketing and financial forecast of |
| placed within your plan. The content and | | | | your business. Your strategy being why and |
| format of your business plan is determined by | | | | how your plan will work and your marketing |
| your business goals and the audience to which | | | | being the process by which your business will |
| you are writing your business plan for as | | | | decide what it wants to sell, to who and when |
| well as your target market for your business. | | | | and how. |
| Your plan will also draw on a wide range of | | | | |
| knowledge from many different places such as | | | | One way in which you should produce your |
| finance, human resource management, | | | | business plan is in certain stages such as |
| intellectual property management, supply | | | | starting with the most vital part of your |
| chain, operations and marketing. | | | | plan; your executive summary. This is an |
| | | | overview of your business. Many lenders and |
| Your business plan, as well as setting the | | | | investors make judgements based purely on |
| guide for your business, is also used to | | | | this aspect of your business plan. |
| secure the external funding for your | | | | |
| business. The way in which this is done | | | | Finally it should be noted that your business |
| depends on the type of funding that you are | | | | plan is also on going. It is a working plan |
| hoping for. If you want debt finance, for | | | | that can be added to throughout your |
| example in the form of a bank loan, then | | | | business; keeping everything that you do well |
| within your business plan you must | | | | documented. Helen is the web master of |
| demonstrate how you are planning to re-pay | | | | Angel Start-ups, home of all your Business |
| this loan to show that your business has the | | | | Plan writing needs. |
| ability to re-pay the loan. If you are hoping | | | | |