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Handout 2 - EBS Business Plan
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! How a business plan assists entrepreneurs fend buss ie on tsonn des not cata gos NESS Aged rey inadbon one ail orden rn. sins plans ne ofthe ay gents fay ses Abin om arto Oger wet esas ry wet ota a a i hepsyout snp poles nd ir ut = ere tem rae erent oration othe pepe to eae pany ryote Yo ON rane pan cong cote of abuses ais ans Amn acces eine te ne doe ovo een ae aspen byte rod tere 2 aaa rpg cnmorsetrg ol vay 2 aa anc lal and epars he ranaegaerers at canbe ice Thebes pln sho be pete i form tat can be eh ra eco he an pa fabs pan nwa ard a ng To pages uperes, neces, wth me Cae appends Contents of a business plan simple buses plan shoud be dearly et out under the following eating 4 ecutive summary Aver brie summary ofthe key Fetus of enrgtnaretoage dkaeaureide the business andthe busines ln. freerstono! abuses ar stow > he gyn, Tis section should give some formation aout feos arson ene aun cg rebrand IM etna hey have done previous work experienc, itshould tain the names an adresses oF two ets. busines. This shoul fist contin te name and adress of 2 a eer nen go onto grea elie crete Re oduct or sece beng oflered ow and where it al be Froud, ho ily to By it nd n what quanti. atk. Ts section wl deserve te market esearch that 1 Teen ted hat thas reeled ar sould ave tetas prospec customers ow many hee are, 3 auch they woud be prepared topo. should 280 a4 ‘devs of the competion 5 verisign promotion. Ths should die infarmaion aboot At es wl be pabsed pale CUE Spould ge etal hel cst pemise ndeqirent Ti secon soul! show hatte © Permit fac coved a ange of incatons and hen chosen eet oud abo gve deta of panning regulon thebeats Cow of promis an treed fo ecu. Shout be ncised - ewsnesorginatin Sate whether the ener te the Sucre eer prtasi, compa cooperate 8 Costings. The business should give some indication of the cost, (of producing the product or service, and the pices it proposes ta charge. tis then possibe to mate profit aiculatons 9 The finance, This should give details of how the finance for the busines is going tobe raised. How much wll Come from savings? How reuch wil need to be borrowed? 410 Cash flow. This should stall expected income and cutgoings ‘ver the fst year. Cashflow ealeulations ar important, but at this stage they ean only be approximate 111 Expansion Finally the business should given an indication of future plans. Does it want to keep on rodusng a steady output ‘ra dramatic expansion possible? Does itimtend to add to is product ange? What kind of new competition i they to emerge, and how wil the business deal wath it? (GERUB]| Anvetecvebushesspan In 1.3.1 we saw how James Dyson was able to 6 Conver eat idea into a succesful business, In order to secure finance fr his ideas he woud eed to show hs plans to ouside investors and to Tenders suchas banks. The folowing things would help to convince them 10 finance the business 11 The detailed research that had gone into ‘Tey would want to kaw about Dyson's {tack record as an entrepreneur and runing a succesful busines. ‘They would want to know about the timing ‘of ilaws and outions cf cash to and from Dyson's business to make sure that he always had enough cash to pay his bil perfecing the product 9. over 5000, prototypes to come up wth a working made 2 They woud have abo wanted to see 3 ‘demonstration ofthe inal made ofthe es Questions 13 They would have wanted to check onthe They wouid abo want to know about ideas for future expansion ofthe business and what the financal implications ofthis would be. 1 Identity a business idea of your own, What ‘manufacturing costs to see how these sit ental? How woud you beable to ‘compared withthe price of the product. persuade potential investors that your idea is 4 They would want to know about the ‘900d one? _advertsing and promotion ofthe model 2 What details would you need to nude in 3 5 In particular they would want to know tht, ‘sins plan if you were quing to beable to ‘there was a eufficentl large market fr the Convince investors to vest in you and your product to make it worthwhile. dea? 1 What are the most important details that should go into a bbsiness plan in relation to the following? ‘awh the owner is bb who makes up the market and market characterises « finance of te business potential proftablity of the busines. 2 when should you make out a business par and how ‘should it be? ae
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