Task Sheet 6 A BUSINESS PLAN To complete this business plan you must imagine that you need £20,000 to start a business. ‘A business plan is a document outlining the way a business will be set up and run, A bank manager might want to see a business plan before deciding whether to lend you money to start accompany. By filling in the document below, you should have some idea of what to include. Business name: Address & phone no: Legal structure (sole trader/partnership etc): Reason for choice of legal structure: Who are the key personnel? ‘What skills or experience do key personnel have to make the business a success? (use space below) ‘What will the business do? ‘What date will you start trading? ‘What is the address of your web site? ‘Are the owners prepared to risk their own possessions if they go into debt? What market research will you do to identify if your business will be a success? (Use space below) How much money will be required to start the business? Explain in detail how this money will be used (use space below) Estimated costs for the first year trading: £ Estimated revenue for first year: £ ‘What other information do you think might be included in your business plan? ‘Holdsworth Associates[—— _ Possible Answers A BUSINESS PLAN To complete this business plan you must imagine that you need £20,000 to start a business. A business plan is a document outlining the way a business will be set up and run. A bank manager might want to see a business plan before deciding whether to lend you money to start a company. By filling in the document below, you should have some idea of what to include. Business name: _| Benfleet Associates ltd ‘Address & phone no: | 12a Hedge End, Swavesey, Cambridge (01954) 656565 Legal structure (sole trader/partnership ete): | Private Limited Company Reason for choice of legal structure: | It gives us the protection of limited liability. We can sell shares. ‘Who are the key personnel? | John Farnsworth, Sarah Jane Jarrold, Rachel Sexton - Directors What skills or experience do key personnel have to make the business a success? (use space below) John is an experienced marketing executive. He has worked for over ten years in the industry and has ‘managed a number of major accounts. Sarah Jane is the creative director. She has many good ideas and hhas led many important marketing campaigns. Rachel has the financial know how that is needed to run an organisation. She has an accounting background and has an understanding of the marketing industry. Produce and implement marketing plans (price, product, place, promotion) What date will you start trading? | May 2001 What will the business do? What is the address of your web site? | Benfleetassociates.co.uk Are the owners prepared to risk their own possessions if they go into debt? | No— limited liability for all What market research will you do to identify if your business will be a success? (use space below) We will do some primary market research by surveying businesses in the area to see if they would use a marketing business. We will look at existing marketing companies to see how busy they are. If our competitors are doing well, then there is every chance that we will succeed. We will do some secondary market research by buying information from Euromonitor and Mintel. They publish books of data which show how the business is doing and will give us valuable information about our prospective clients. How much money will be required to start the business? | £150,000 Explain in detail how this money will be used (use space below) We will spend £10,000 on renting office space. Desks, chairs and other furniture will cost £25,000. Computers and other IT will costs £30,000. We will have an advertising budget of £25,000, which will leave us with £60,000 to spend on office staff and other bits and pieces such as stationery. We will need to have a substantial sum to use as working capital. We do not want to get into cash flow problems in the early stages of our business. We expect to lose money in the short term until we build up our clients. Estimated costs for the first year trading: £ | £200,000 | Estimated revenue for first year: £ | £250,000 ‘What other information do you think might be included in this business plan? A list of possible clients would be usefill, together with a breakdown of how much they might spend on each job. A table detailing the amount of money that the three directors are planning to put into the business would show how serious they were. Cashflow is one of the main problems that a new business faces, and a -cashflow forecast would be of great help to a bank thinking of lending money to Benfleet, or to anyone thinking of investing in the company. ‘Holdsworth Associates