Business Planning For Finance

DELIVERED BY:Business Services Support Limited – www.businessservicessupport.com Produced: By Sheila Elliott MBA, FCCA, LPNLP

HOW TO WRITE A BUSINESS PLAN-BUSINESS PLANNING FOR FINANCE

http://www.businessservicessupport.com/

COPYRIGHT© TO BUSINESS SERVICES SUPPORT LIMITED 2011

WHAT YOU WILL LEARN Different sources of finance

Identifying the right financing strategy

Putting together your business plan

Sensitivity analysis and financial ratios

Sourcing finance from UK wide lenders- irrespective of your credit rating

Copyright ©Business Services Support Ltd 2007


SOURCES OF FINANCE V PROS AND CONS

Grants- not paid back but not widely available

Loans- repayable with interest (with exposure to interest rates movement)

Equity- not repayable but dividend expected as well as capital growth; also loss of control.

The right balance for financing depends on your current financial needs and financial capacity.


TYPICAL STRUCTURE USED FOR APPRAISING YOUR FUNDING NEEDS Alignment of funders needs with your needs- policy on who to

finance or not, what is in it for us

Management capacity- can they be trusted- credit scoring, experience, character, track record, accomplishment

Products viability- target market, market size, profit potential

Marketing strategy and plan-market penetration

Financial viability- financial ratios, forecast profit and net-worth

Sensitivity analysis- changes in factors and impact on projection


BUSINESS PLANS- THE FUNDAMENTAL TOOL FOR RAISING FINANCE

Description of the business What finance is required and for what Vision and mission statement Market Analysis Products and Pricing Analysis of resources required and what is current available Analysis of external environment (PEST Analysis & Porters 5 forces) including competition analysis Marketing and sales strategies Milestones Risk Analysis and Management Systems SWOT Analysis Financial forecastsprofit and loss , cash-flow and balance sheet



Finance Required & PurposeAmount required

What is it required for

Historic financial performance:

- Tabular format

-Graph or pie chart

Some quotation from suppliers


WHAT IS THE FINANCE NEEDED & FOR WHAT


SCOPE AND CONTENTS OF A BUSINESS PLAN

Vision and mission statement Vision is critical for business success

Vision is the end state of your business

Vision paints a picture of what your business wants to achieve

Mission is the purpose for which your business is established

Mission - To provide high quality healthy meals in a restaurant settings for a specific target market. To enhance the potentials of individuals through high

quality training and education.

Vision - To become the number one restaurant in a particular niche market. To be the number one provider of business training across the world.



Target Market Analysis List who the target market is - who you want to sell to

Describe their profile- sex, age, income profile, location, business size, location, age, type, life style and so forth.

What does the market need & how do they make purchasing decision

Size of the market – is it growing, declining, plateau (critical mass)

Purchasing power of the market- Market must be able to pay other wise your business is not viable.

E.G

The target market of ABC Limited (cleaning company) are:

Commercial business- offices, supermarkets, social care homes, pubs,

Public sector businesses- hospitals, government offices etc

Residential homes- across the south east of London



Products and Pricing

Details of the products and

services provided currently

Details of new

products and services

Pricing strategy –

low end, mid end & top

end

Elasticity of demand



Analysis of resources required and what is currently available

Who are the key people that are involved in the business or that will be involved in the business and how many/ roles- Organisation Chart

What is the credential of the core people involved- CV summary (staff, associates, partners, consortium etc)

Who will be the key suppliers of the resources required to produce products and services- credential and reputation

What premises will be used and how appropriate is it. What other resources are required

Are there gaps



Analysis of external environment (PEST Analysis & Porters 5 forces) including competition analysis

Political impact- legislations affecting the industry (minimum wages, no smoking, VAT, H& Safety, Environmental, anti-discrimination, and more)

Economic – state of the operating economy – booming, receding or stable- Inflation, exchange rate, interest rates, GDP, unemployment rate,……

Social- life style, population growth of your market, size and needs etc

Technological – impact of technology on your industry and impact on your business

Keynotes, Mintel etc



Market Competition Analysis:

Demonstrate knowledge and awareness of alternative suppliers- do not imitate

Describe the core competitors- ensure you define them correctly

Location and size – Strengths and Weaknesses

Unique Selling Point- differentiating factors



Marketing and sales strategies

What is the business model you will use to compete.

Think 7 P- Product, Price, Promotion, Place, Process, People & Policies



Milestones What are the gaps identified in the business plans

List actions you will take to close gaps

Who will be responsible for each action

What is the deadline date for accomplishing the actions


SWOT ANALYSIS.



Risk Analysis and Management SystemsWhat are the risks and how will you managed them?

Demand risk


Competition risk

Operating risk

Financial risk

Strategic risk

Political risk


SCOPE AND CONTENTS OF A BUSINESS PLANFinancial forecastsprofit and loss, cashflow and balance sheet Is the business model financially viable

What is the projected sales- linked to the size of the market and demands for your services and products x price

What is the cost of providing the products and services- linked to inflation of market delivering the resources or broad market).

What is the costs of capital- linked to interest rates and the general economic conditions….



The End

Contact Details: Sheila Elliott FCCA, MBA

Email- [email protected] 0208 310 4101 or 07737459730

If You need finance for your business please contact us. We can assist you to access a wide range of funder irrespective of your credit rating and capacity.

mailto:[email protected]

Education

Business Planning For Finance