Advice in making a Business Plan; Useful Points to note for Small and Medium Scale Businesses

Why do businesses need a plan? As everything in life businesses too need careful planning. Businesses are all about getting a return on investment. A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.

Why do you need a business plan?

  • To focus your efforts, set objectives and company direction.
  • To enable you to spot potential pitfalls before they happen.
  • To set realistic targets that allow some flexibility – without steering away from core objectives – for some ‘fine tuning’ along the way.
  • To enable you to track your growth.
  • To structure the financial side of your business.
  • To raise finance.

To ensure that you get a healthy return on investment, the business owner must plan from the start on almost every aspect pertaining to the business. Some major areas that need careful planning are,

  • ž   The actual concept of the business
  • ž   How can you present your business concept to the customers
  • ž   Business goals and objectives
  • ž   Financial requirements
  • ž   Initial costs involved
  • ž   Number of staff required
  • ž   Product range and the pricing policy
  • ž   Market segmentation and the target market
  • ž   Competitor analysis and marketing strategy
  • ž   Regulatory requirements
  • ž   Projected profit and loss statement and a cash flow statement.

The preparation of a business plan is not all that easy as there are so many areas that need to be scrutinized. But, to begin with, you can develop a rough sketch of the products that you wish to sell and the market segment that you are targeting. Subsequently you can formulate your business goals and objectives supported by a timeline plan. Then comes the tricky part. This involves doing the SWOT analysis and the PEST analysis of the business as appropriate.

SWOT stands for strengths, weaknesses, opportunities and threats. Strengths and weaknesses are internal but opportunities and threats are external to the business. As a small business owner it is imperative that you identify these aspects wisely as you need to formulate an action plan to tackle the barriers and optimize the opportunities thereafter. The PEST analysis is mostly appropriate for larger businesses. However, there’s no limitation that one cannot do a PEST analysis for his business. PEST is mostly to do with political, economical, social and technological aspects of the business.

Once the analysis part has been completed you can move onto the other areas such as financial requirements, staff requirements, marketing plan etc. The next technical bit is where you have to prepare the projected profit and loss statement and a cash flow statement. This is where you need assistance of an accountant to prepare these two documents. It is vital that you seek professional advice when preparing these two documents as they need to be submitted to banks if you intend to apply for financial assistance.

Talking about your business plan is something, but compiling all your ideas and plans into a document is another thing. We at KVS accountants have extensive experience in helping small to medium scale businesses to draw up their business plans for funding purposes. As experienced accountants serving clients around Clapham, Clapham South, Clapham Common, Balham, Tooting and Notting Hill we know that their is a very strong correlation between the quality of the business plan and securing funding for your project.

Contact KVS accountants for a detailed discussion of your business idea and how we can help to realise that

 

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