Are you planning to access new funding for your business? Do you need to prepare a Business Plan to support your funding proposal?
Here are some of the key things which you should consider including.
Executive summary
Always include an Executive Summary at the start of a Business Plan. This is your chance to ‘pitch’ your proposal. Focus on key issues and the benefits of the funding opportunity. The rest of the Plan provides the detail.
Company overview
- Description of your business and your product/service offering
- Key business objectives and philosophy: now and in the future
- Company history – milestones in development
- Organisational structure of the business
- Ownership – capital structure, shareholders
- Number of employees
Markets and competition
- Target markets: size; nature (e.g. mature/growing); home v overseas; key customers (current and prospective); distribution channels
- Your position within the market
- Unique selling points or market strengths of your product/service
- Laws and regulations impacting the market
- Impact of Brexit, in particular a no-deal scenario
- Competition: key competitors; special features of competition; barriers to entry; your progress to date (successes and failures)
- Marketing and sales plans
Production, purchasing and research & development
- Existing production facilities and current usage
- Future production requirements
- Purchasing: organisation, policies and key suppliers
- R&D strategy and facilities
- Environmental and health & safety issues
Funding proposal
- Funding needed
- How you will use the funds
- Growth strategy – where will this funding take you?
Management
- Key management roles
- Biographies of key managers, showing credentials suitable for their role
Financial information
- Historical statutory accounts (if available)
- Latest management accounts including profit & loss accounts, cash flows and balance sheets. Commentary on key trends and KPI’s
- Details of operational and financial KPIs you use to track progress
- Financial projections, including underlying assumptions/KPIs, profit & loss accounts, cash flows and balance sheets. Commentary on key trends and assumptions
Assets and liabilities
- Description of key business assets and liabilities at the latest balance sheet date
- Details of any intellectual property assets
- Latest valuations of assets (if available)
- Existing charges/guarantees
- Existing borrowings (term, security, repayment schedules, interest rates and covenants)
- Significant off-balance sheet assets and liabilities (contingent assets and liabilities)
Exit options
- Possible exit routes (e.g. potential trade acquirors or IPO) – particularly relevant for equity investors
Appendices
Keep as much of the detailed information, such as historical financials, financial projections and management CVs, in Appendices.
The above is only a summary of the key items which should be considered for inclusion.
If you’d like further advice or support on Business Plans and financial projections; if you need a part-time or virtual SME FD to support your growth plans, we can help. For a no-obligation conversation, get in touch via our Contact Us page.
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Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Whyatt Accountancy accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.