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We would be pleased to hear
about your business idea.
Email or call
us on 0151 236 0500 | 0151 236 4040
or ask your professional adviser, research business gateway or IP department
to contact us.
Before you send information please look at the key elements of a business
plan and check the eligibility criteria.
Key elements of a start up business plan
This is a basic summary of some of the necessary
components of a simple business plan. It is assumed that the business is
in an early stage and that the business plan is being prepared as a marketing
tool for the purposes of funding the business either through a loan or through
equity capital.
Executive Summary
This should contain a complete summary of the business concept and a clear
reason why customers will buy from you – the unique selling point or
source of competitive advantage. It should be no longer than two pages in
length and preferably just one. A brief summary of the market scale and
characteristics is also valuable.
Introduction
- When was the business created and what is its status?
- What is the main activity of the business?
- Who are the customers (and also, if appropriate, the eventual consumers)
for the products and/or services offered by the company?
- How large is the market place? What are the prospects for growth?
- What is different or advantageous about the product offered by the
company? Why is it better than similar competitive offerings? What are
the characteristics of the competition?
- How are the current needs of the customers being met? Are there any
obstacles to change to adopt your product?
- Any evidence of success to date? Initial sales? Signed development
or supply agreements?
Operational Strategy
- What will be sold to whom?
- What are the basic operational requirements for the business to succeed?
- Equipment
- Premises
- Patents / protection of intellectual property
- People
- What staff will be required?
- When will they be recruited?
- What are the investment costs for these facilities?
- Can equipment be leased rather than purchased?
- Can other organisations or companies supply some of these services
on a sub-contracting basis (consider all aspects of the ‘make/buy’
requirements)
- What are the requirements for the supply of raw materials? If this
is a new product, is the supply position economically viable and sufficiently
abundant to take into account plans for growth? How many suppliers
are there and what are their strengths and weaknesses?
- What are the ongoing operating costs?
- Wages and benefits
- Travel
- Premises
- Lease/Rent
- Heating / lighting / other service (if appropriate)
- Maintenance
- Equipment
- Patent costs
- Admin, insurance etc
- Are there any hurdles to the introduction of the new product e.g.
Regulatory / materials and articles in contact with food / Good Manufacturing
Practice / Licenses / Quality Assurance / Accreditation?
Sales & Marketing Strategy
- What are the characteristics of the market – scale, growth, scope?
- What factors are important to the customer in buying this (or similar)
products?
- Who are the purchasing decision makers? Who else would influence the
purchase of the product?
- What is the pricing strategy for the product? How does it compare
with the current situation?
- What is the target level of sales in the initial period of operation
(e.g. 3 years) for each of the products?
- What is the cost (and hence the margin) for each of the products?
- What is the overall projected gross margin contribution?
Key Personnel
- Who are the principal people in the business? Many investors will
'back the jockey and not the horse'.
- What relevant experiences do they have?
- Technical qualifications
- Positions of responsibility
- Achievements
- Business experience
- What is their intended relationship with the business (i.e. anticipated
level of commitment to the business)
- Who are the advisors to the company? This may include some non-executive
directorships; financial advisors; legal advisors; patent agents etc..
Financial Summary
- List of assumptions
- 3 year Profit & Loss Projection
- Sales Level;Cost of Goods sold = Gross Contribution - Operating Costs
= Profit/(Loss)
- year cash flow forecast
SWOT Analysis
- List the Strengths, Weaknesses, Opportunities and Threats
Next Steps
- What practical steps need to be taken to develop the business?
- How much investment / cash is required to make this happen?
- How will the cash be used?
Notes:
- Aim for clarity, simplicity and brevity – 10/15 pages ought to
be sufficient
- Avoid Jargon and complex technical explanations
- Use Appendices if necessary to expand on any particularly difficult
issues
- Presentation matters – first impressions are vital
- Ensure that the basic issues are addressed
- What is the company’s product?
- What is its competitive advantage?
- Who are its customers?
- Is the offering financially viable?
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