Howtowriteabusinessplan

HOWTOPREPAREABUSINESSPLANCopyrightErnst&Young.TheinformationcontainedinthispackageispropertyofErnst&YoungandmustnotbereproducedorcopiedwithoutErnst&Young’sconsent.HOWTOPREPAREABUSINESSPLANTheimportanceoftheentrepreneurialsectorOneofthemostvibrantsectorsoftheAustralianeconomyisthesmallandmedium-sizedenterprise(SME)sector.ItistheengineroomdrivingAustralia’seconomicrecovery.Generatingalmost50percentofthecountry’sGrossDomesticProduct(GDP),the860,000emergingandmediumsizedbusinessesthatmakeuptheSMEsector,exhibitthevitality,driveandflairexpectedoftheentrepreneurialspirit.Ernst&YoungEntrepreneurialServicesRecognisingthespecialneedsofSMEs,Ernst&YounghasputtogetherthelargestprofessionalservicesteaminAustraliatocaterfortheseneeds.EntrepreneurialServices(ES)isdedicatedexclusivelytoassistingemergingandmedium-sizedbusiness,bringingbusinessknow-howandexpertise.Asbusinessadvisers,EntrepreneurialServicesbringsleadingedgeskills,supportingyourknowledgeandexperiencewithourstogeneratenewideas,newsolutionsandenhancedresults.ESprofessionalswillassistyouinbusinessplanningandcontrol,taxationplanning,expansion,informationsystems,financing,accountingandtaxationandothercommercialservices.Withyearsofprofessionalexperiencebehindit,EShashelpeddevelopmanybusinessventuresandknowshowcriticaltheplanningstageistothesuccessofanyventure.Thiscomputerdiskwilltakeyoustep-by-stepthroughthestagesofcompletingyourbusinessplan.EntrepreneurialServicesisreadytoassistinthefinalpreparationofyourplan.EntrepreneurialServicesisofferingatotalservicepackageforalltheneedsofsmallandmediumsizedbusinesses.Callusonanyofthecontactnumbersforfurtherinformation.BUSINESSPLANNINGPREPARATIONOFABUSINESSPLANAbusinessplanAbusinessplanisadetailedoverviewofwhereabusinessisnow,howitispositioningitself,whereitwantstogoandhowitisgoingtoachieveitsgoals.Itisablueprintofanorganisation’spast,presentandfuture.Abusinessplaniscriticaltothesuccessofanyventureandisanindispensablemanagementtoolthatcanbeusedinavarietyofsituations.UsesofabusinessplanAttheveryleast,companiesusebusinessplansto:•TestthefeasibilityofanideaBusinessplansareoftenusedtohelpdeterminewhetherornotabusinessventureislikelytobesuccessful.Adetailedbusinessplanisachartofaventure’sassetsinworkforce,skills,management,performance,goalsandvision.Thebusinessplanprovidesaplatformonwhichthetheoreticalanalysisofthefinancialfeasibilityofaconceptcanbeexamined.•EstablishandevaluateperformancebenchmarksIntheday-to-daycutandthrustofthebusinessworlditissometimesdifficulttostepbackandlookobjectivelyattheoverallperformanceofyourbusiness.Abusinessplanisareferencepointprovidingyouandyourmanagementwithanobjectivebasisfordeterminingifthebusinessisontracktomeetthegoalsandobjectivesinthetimeframeyouhaveset,andtoevaluateperformance.••CommunicationNobusinessventureworksinavacuum.Communication,thepresentationofyourcompany’sstory,isanongoingprocessthatisrepeatedtimeandagain.Itmustbetoldtoprospectiveinvestors,lendersandfinancialinstitutions,employees,outsideadvisers,customers,suppliersandthemanypeoplewhosegoodwillandco-operationarevitaltothesuccessofyourbusiness.Yourbusinessplanisyourambassador-showinghowthevariouselementsofyourbusinessareintegratedintoavibrantwhole,creatinganorganisationthatisstrongandvital,wellabletomeetitsrealisticgoalsandobjectives.Yourbusinessplancommunicatestoyourtargetaudiencethatyourventureiscompetentandprofessional.WhatabusinessplanshouldcoverYourbusinessplanmustincludethedetailandoverviewthatenablesthereadertogetacompleteandaccuratepictureofyourventureandafeelforyourrealisticstanceandactionablesteps.Itmustalsoreflectyourawarenessoftherisksassociatedwithyourplansandanindicationofhowyouwillminimisesuchrisks.Itmustshowflexibility,includingcontingencyplansifkeyassumptionsarenotmet.Yourresearchmustshowyouareawareoftrendsanddevelopmentsinyourparticularoperatingenvironmentandinthemarketplace.TableofContentsThissectionofthebusinessplanwillassistreaderstolocatespecificsectionsandpointsintheplan.DescriptionPage1.ExecutiveSummaryandSummaryofObjectives62.BusinessDescription103.MarketAnalysisandStrategies124.ProductorServiceResearch&Development155.Operations176.KeyManagementPeopleandOwnership197.Personnel218.FundsRequiredandtheirUses229.FinancialData2410.SWOTAnalysis2711.GovernmentAssistancePrograms28AttachmentsA.CashFlowProjectionsB.BudgetedProfit&Loss/BalanceSheetC.FinancialStatements(prior3years)D.MarketStudiesE.SignificantContractsSECTION1ExecutiveSummaryTheexecutivesummaryisabriefoverviewemphasisingthekeyissuesoftheplan.A.Statethepurposeoftheplan(e.g.Toobtainfinance,toattractinvestors,setgoalsforfuturedevelopment.)B.Describethecompany•businessorcompanyname•yourindustry•keyproducts/services•keypatents/trademarksC.Analysethemarket•thecharacteristicsofyourtargetmarket(demographic,geographic,etc.)•thesizeofyourtargetmarket•competitorsD.Listyourmarketingandsalesactivities•marketingstrategy,e.g.directmail,advertising•salesstrategy,e.g.salesstaff,commissionagents•distributionsystemsE.Describeresearchanddevelopmentundertaken(ifrelevant)ando