A to Z of services: Business planning

Business planning is an essential component of any successful business but it is often overlooked due to pressures of day to day work.

A well considered and constructed business plan can help you safeguard your own investment, focus your efforts, ease external financing problems and help you measure your progress. Once developed you should aim to maintain your business plan in-line with your business.

Writing a Business Plan is essential but it is not as difficult as it may sound - it is simply a way of putting your ideas on paper.

Areas that are usually covered:

• Description of the business - brief overview of purpose of business and location.
• Evidence of demand for product/service - size and location of market, buying patterns, type of research carried out.
• Sales and Marketing - how you will promote your product/service, sales targets you've set, competition and how you will overcome it.
• Product/Service - description and its advantages (and disadvantages).
• Management - CVs, training needed, what are these people bringing into business?
• Financial forecasts - cash flow forecast, profit and loss, initial financial outlay

Your plan should contain the essential information required - not waffle.

Try and tailor it to the needs of whoever is going to be looking at it. And remember, with financial predictions - best to be prudent - don't be over-optimistic!

You can obtain examples of business plans from:

• Local libraries
• Business services of banks