We hope you find this of assistance. If you would like further clarification of some of the terms used below or assistance completing your Business Plan please contact us at admin@linkservices.com.au.
A Business Plan is your road map to success. Would you get in the car and just drive? No, you usually have a destination and a route worked out. The Business Plan is the thought process needed to determine the future direction of your business.
Banks require Business Plans because they provide them with an overview of your business.
The following are the areas that need to be considered when completing a Business Plan.
Business Background: Structure and Organisation. This should be a general overview, providing details on how your business works, key personnel and how you have brought it all together.
SWOT Analysis. This is a review of the Strengths and Weaknesses (internal issues) of your business and the Opportunities and Threats (external issues) that may impact on your business. This review is important because recognising these issues will allow you to identify areas where you have an advantage and highlight areas that you need to consider when conducting business.
The Product, Market and Marketing Strategies. This will clearly identify your product or service, the market in which you operate and the approach you will take to meet your goals. The strategies must respond to the issues raised in the SWOT analysis.
Financial Projections. A projected profit and loss statement for the upcoming year with a forward look to cover the next 3 or 4 years. This should show expected revenues and costs and highlight any assumptions used.
Cashflow Projections. Covering the same period as the profit and loss statement the cashflow should reflect the expected cash inflows and outflows. This should identify any periods of negative cashflow and expected peak debts. This will assist you and your bank to plan and manage borrowings and overdraft limits to allow your business to function effectively.
Summary of the Business Plan. This is completed last but is presented at the front of the Business Plan. It should be a brief overview and highlight the areas that will make your business successful. The three main areas should include:
Mission Statement - What are your products or services and how are you going to achieve your objectives?
Expected Results - In words summarise what your expected revenue and results will be during the period covered by the Business Plan.
Summary of Market. What is the market and how will you achieve your goals.
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Please note this information is for general assistance only. We accept no responsibility for the information supplied. Please contact your professional advisors as required.