In this section

The business

This section and the following one represent the meat of the business plan. In this section, you need to address several key issues. Click on each heading to learn more.

Business [more]

Here you should try to briefly address the following questions: 1. What type of business are you proposing and what is the concept? 2. What sector will you be operating in? 3. Broadly, what will your offering entail? 4. What are your general aims and goals? 5. Where is it located? What facilities or amenities will it include? 6. Who will the customers be? 7. Who will your competitors be? The key objective here is to provide an overview of the business, why it is necessary, who will use it, and who you will compete against. A business idea doesn't have to be totally new to appeal to an investor or lender, but it does have to meet a defined need or gap in the market, and that's what you're trying to highlight here.

Operations [more]

Here you should describe how the business will operate, addressing the following: 1. Opening hours, seasonality, etc. 2. Facilities and resources available to the business. 3. Managing quality and service. 4. Suppliers and their credentials. 5. Health and safety for employees and customers. 6. Environmental and waste management. This type of information is important - you'll need to think about how you'll operate the business to a high standard. It also shows the reader of the plan that you've given due consideration to how the business will operate as a going concern and that you have thought beyond Day One.

Key trends in the sector [more]

Here you should address the following questions: 1. What are the key trends in the sector? For example, how is the sector structured, are there large or small businesses, many or few players? Is there an over/under supply of the type of product or services you propose to offer? 2. What are the overall growth projections for the sector in your region? 3. What support is available for businesses such as yours? Are you getting the most out of this support? 4. Who are the main trade associations? Do you have a relationship with them? You need to thoroughly research this information. This section will help you to better understand the dynamics of the sector and give you confidence that you have really done your homework.

Vision for the business [more]

An important consideration for any new business operator is the long-term future of their business proposal. In this section, summarise your goals for your business. Some business owners see the goal as being to get the business off the ground, but that should only be a milestone on the longer journey of creating a business which makes a difference in some shape or form. You'll want to make money from your proposal and there's nothing wrong with that. But in the process of doing so, you'll want your business to stand for something, whatever that vision might be.

Mission for the business [more]

Your mission statement on the other hand contains a few sentences which describe what type of business you will operate as you work towards the vision. It outlines what you will do for key stakeholders such as owners/investors, customers and employees. This is an important statement for a number of reasons: 1. It will make you think about the type of business you wish to run with regard to key stakeholders. 2. It will tell outsiders something about you as a business person and what your beliefs and values are. Developing concrete goals with strategies will help you achieve your mission and vision for your business.

Goals and overall strategies [more]

Vision and mission statements are important as indicators of intent, but you'll need concrete goals and strategies to achieve them. This section of your plan should address measurable goals and your strategies to achieve them. Measurable goals should be devised in areas like sales, profit, customer satisfaction, and employee satisfaction. Goals will bring your vision and mission to life because they translate aspirations into targets which are "Specific, Measurable, Achievable, Realistic and Time bound (SMART)". For example, your mission might state that you want to provide an adequate return on investment for your investors (if you have them). To make that more concrete, set a specific target for profitability or return on investment. Defining strategies, on the other hand, will help you achieve concrete goals and targets. Using the above example, ask yourself how you will achieve the defined profitability or return on investment target?

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