Writing an effective business plan for finance needs effort and concentration. If you are new in business writing then here are few easy steps to guide in your writing

1. H OW T O W RITE A B USINESS P LAN B USINESS P LANNING FOR FINANCE
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2. W HAT
YOU WILL LEARN
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Different sources of finance
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Identifying the right financing strategy
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Putting together your business plan
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Sensitivity analysis and financial ratios
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Sourcing finance from UK wide lenders- irrespective of your credit
rating
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2011

3. S OURCES OF FINANCE V PROS AND CONS
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Grants- not paid back but not widely available
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Loans- repayable with interest (with exposure to interest rates
movement)
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Equity- not repayable but dividend expected as well as capital
growth; also loss of control.
The right balance for financing depends on your current financial
needs and financial capacity.
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2011

4. T YPICAL STRUCTURE USED FOR
APPRAISING YOUR FUNDING NEEDS

Alignment of funders needs with your needs- policy on who to
finance or not, what is in it for us
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Management capacity- can they be trusted- credit scoring,
experience, character, track record, accomplishment
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Products viability- target market, market size, profit potential
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Marketing strategy and plan-market penetration
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Financial viability- financial ratios, forecast profit and net-worth
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Sensitivity analysis- changes in factors and impact on projection
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2011

5. BUSINESS PLANS - THE FUNDAMENTAL TOOL
FOR RAISING FINANCE
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Description of the business
What finance is required and for what
Vision and mission statement
Market Analysis
Products and Pricing
Analysis of resources required and what is current available
Analysis of external environment (PEST Analysis & Porters 5 forces)
including competition analysis
Marketing and sales strategies
Milestones
Risk Analysis and Management Systems
SWOT Analysis
Financial forecasts- profit and loss , cash-flow and balance sheet
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2011

6. W HAT IS THE FINANCE NEEDED & F OR
WHAT
Finance Required & Purpose
Amount required
What is it required for
Historic financial performance:
- Tabular format
-Graph or pie chart
Some quotation from suppliers
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2011

7. S COPE AND CONTENTS OF A BUSINESS
PLAN
Vision and mission statement
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Vision is critical for business success

Vision is the end state of your business

Vision paints a picture of what your business wants to achieve

Mission is the purpose for which your business is established
Vision - To become the number one restaurant in a particular niche market.
To be the number one provider of business training across the world.
Mission - To provide high quality healthy meals in a restaurant settings for a
specific target market. To enhance the potentials of individuals through high
quality training and education.
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2011

8. S COPE AND CONTENTS OF A BUSINESS
PLAN
Target Market Analysis
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List who the target market is - who you want to sell to
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Describe their profile- sex, age, income profile, location, business size,
location, age, type, life style and so forth.
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What does the market need & how do they make purchasing decision
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Size of the market – is it growing, declining, plateau (critical mass)
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Purchasing power of the market- Market must be able to pay other wise
your business is not viable.
E.G
The target market of ABC Limited (cleaning company) are:
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Commercial business- offices, supermarkets, social care homes, pubs,
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Public sector businesses- hospitals, government offices etc
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Residential homes- across the south east of London
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2011

9. S COPE AND CONTENTS OF A BUSINESS
PLAN
Products and Pricing
Details of
the
products
and
services
provided
currently
Details of
new
products
and
services
Pricing
strategy –
low end,
mid end &
top end
Elasticity of
demand
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2011

10. S COPE AND CONTENTS OF A BUSINESS
PLAN
Analysis of resources required and what is currently
available

Who are the key people that are involved in the business or that will be
involved in the business and how many/ roles- Organisation Chart

What is the credential of the core people involved- CV summary (staff,
associates, partners, consortium etc)

Who will be the key suppliers of the resources required to produce products
and services- credential and reputation

What premises will be used and how appropriate is it. What other resources
are required

Are there gaps
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2011

11. S COPE AND CONTENTS OF A BUSINESS
PLAN
Analysis of external environment (PEST Analysis & Porters 5 forces)
including competition analysis

Political impact- legislations affecting the industry (minimum wages, no
smoking, VAT, H& Safety, Environmental, anti-discrimination, and more)

Economic – state of the operating economy – booming, receding or stableInflation, exchange rate, interest rates, GDP, unemployment rate,……

Social- life style, population growth of your market, size and needs etc

Technological – impact of technology on your industry and impact on your
business
Keynotes, Mintel etc
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2011

12. S COPE AND CONTENTS OF A BUSINESS
PLAN
Market Competition Analysis:

Demonstrate knowledge and awareness of alternative
suppliers- do not imitate
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Describe the core competitors- ensure you define them
correctly
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Location and size – Strengths and Weaknesses

Unique Selling Point- differentiating factors
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2011

13. S COPE AND CONTENTS OF A BUSINESS
PLAN
Marketing and sales strategies
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What is the business model you will use to compete.
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Think 7 P- Product, Price, Promotion, Place, Process,
People & Policies
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2011

14. S COPE AND CONTENTS OF A BUSINESS
PLAN
Milestones

What are the gaps identified in the business plans
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List actions you will take to close gaps
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Who will be responsible for each action
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What is the deadline date for accomplishing the actions
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2011

15. S WOT A NALYSIS
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2011

16. S COPE AND CONTENTS OF A BUSINESS
PLAN
Risk Analysis and Management Systems
What are the risks and how will you managed them?
Demand risk
Competition risk
Operating risk
Financial risk
Strategic risk
Political risk
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2011

17. S COPE AND CONTENTS OF A BUSINESS
PLAN
Financial forecasts
profit and loss, cashflow and balance sheet

Is the business model financially viable

What is the projected sales- linked to the size of the market and
demands for your services and products x price

What is the cost of providing the products and services- linked to
inflation of market delivering the resources or broad market).

What is the costs of capital- linked to interest rates and the general
economic conditions….
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2011

18. S COPE AND CONTENTS OF A BUSINESS
PLAN
The End
Contact Details: Sheila Elliott FCCA, MBA
Email- sheila@businessservicessupport.com
Tel- 0208 310 4101 or 07737459730
If You need finance for your business please contact us. We
can assist you to access a wide range of funder irrespective
of your credit rating and capacity.
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2011