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investors i.e. anyone who might be willing to lend or give you money for the purposes of your
business is a potential investor. These include not only investors (e.g. banks, venture capitalists
and business angels) but also family, friends and, of course, yourself.
A business plan is much more than a fund-raising mechanism. It is an extremely useful and
effective tool in planning the business itself. It is also used for clarifying what the business is
all about and where you want to take it. This will be useful not only for you, but for anyone
involved in the business. It helps to set goals and objectives, to monitor targets in order to check
if they are being met. It forces you to think deeply about such core aspects of the business as
the product/service, the customer base and the marketplace. It also displays all the important
financial information such operating costs, business assets and profit.
What’s in it?
The contents of the business plan vary from business to business. However, the general format
and key areas tend to follow a standard template which is recognised throughout the business
world.
The key sections of the business plan are:
1. Executive summary. This appears at the beginning of the document. It is a short, concise
summary of all the important facts and statements.
2. Company overview. This section focuses on the nature of the business and includes
discussions on the industry, customers and the products/services which the business
offers. A number of key planning documents can be used to create this section, in
particular the vision statement and mission statements. Other documents that could be
used when drawing up your business plan include a description of the venture’s goals
and objectives and a values statement.
3. Business environment. This is an analysis of the customer base, the market and
marketing.
4. Company description. This provides in-depth information on the company including
details on the business, management, products and services.
5. Marketing and operations. This section deals with the day-to-day running of the
business (or ‘operation’) and the promotion and marketing of the product or service.
6. Financial review. This section describes the current financial status as well as
projections for the future. It includes standard financial documents such as profit and
loss statements, balance sheets and cash flow statements.