[10.08.24]

Very often we will be asked for a client’s business plan, when they are looking to raise finance.  However, we would recommend all clients develop a business plan with a cashflow forecast, no matter at what stage they are in their lifecycle.  Developing such a plan is good practice, even if it is only used internally; as it focuses the business owner on working “on the business”, rather than only ever working “in the business”.

A business plan is simply a description of a business’s future.  It sets out the goals from a financial, marketing and operational perspective; and the corresponding resource needs, including human resources, equipment, capital investment and cashflow requirements.  This enables the business owner, advisors and management team to understand their aims, what actions they need to undertake and any challenges.

The business plan should be central to the business; not something that is written and then put into a drawer.  In addition, it should not be a static document; it should develop as the business develops.

We would expect a business plan to include the following elements:

• Mission statement and/or vision statement
• Description of your company and product or service
• Description of how your product or service is different
• Market analysis that looks at your market, your competitors, where you fit, and what type of market share you can secure
• Description of your management team, including the experience of key team members and previous successes
• How you plan to market the product or service
• Analysis of your company’s strengths, weaknesses, opportunities, and threats
• A cash flow statement so you understand your needs now and in the future
• Revenue projections
• Summary/conclusion that wraps everything together

If you would like help developing or reviewing your business plan, contact Jackie, Andrew or Siobhan on 01625 524127

Castletons Accountants