1. B R I A N W S T E E L
developing higher performance
Starting in Business
The Business Plan

2. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Why write a business plan?

3. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Executive Summary
Write this section last.
Make it two pages or fewer.
Explain the fundamentals of the proposed business:
What will your product be?
Who will your customers be?
Who are the owners?
What do you think the future holds for your business
and your industry?
Make it enthusiastic, professional, complete, and concise.
If applying for a loan, state clearly how much you want, precisely
how you are going to use it, and how the money will make your
business more profitable, thereby ensuring repayment.

4. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Company description
Mission statement – guiding principles of business.
Business goals and objectives.
Nature of your industry
Business strengths and core competence.
The legal form.
Why the legal structure has been chosen.

5. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Products and services
Detail description of products and services offered.
What is your competitive advantage or USP.
What is the basis of your pricing policy.

6. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Marketing plan
Market research undertaken.
Key characteristics of market.
Current state of market
- Economic factors
- Geographical factors
- Current demands and trends
- Market potential
- PEST factors affecting market
Product/Service perception – the customers view of P/S
Customer profile. cont...

7. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Marketing plan II
Competitor analysis – 5 major competitors
Key competitor strengths and weaknesses
Buyer imperatives and major drivers.
Your niche – the selling position you will assume.

8. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Marketing plan II
Marketing strategy
- Promotion methods
- Pricing policy
- Proposed location
- Distribution channels
Sales forecast
Key Operational Factors
- legal issues inc licensing
- personnel
Inventory and Suppliers
Credit policy
Support and key advisers

9. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Start up costs and capitalisation
- all start up costs +20%
Financial Plan
- Cash flow and profit forecast
- Break even point

10. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
A consultant has a private income of £12,000 per year. He needs his
consultancy work to top his income to £30,000 per year. He has fixed costs of
£2,500 per year and can make £500 per day. How many days paid work does
he have to achieve in order to break even?

11. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
BEP = [£30,000 – £12,000 + £2,500]
= £20,500 / 500
= 41 days
Proof = 41 days x £500
= £20,500 + £12,000
= £32,500 - £2,500
= £30,000

12. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Another way of looking at BEP:
On looking at the costs of a business its calculated that its fixed
expenses are £50,000 per year. The analysis also shows that its
variable expenses are 20% of the estimated turnover [sales].
In this case the BEP is calculated by dividing the Fixed costs by
the variable expense %age [20%].
£50,000/20% = £250,000
The business needs therefore to make £250,000 to break even.

13. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
What happens if the variable expenses are higher or
lower?
Say the variable expenses are 30%
This would result in the BEP being:
£50,000/30% = £167,000 or £83,000 less than before
In contrast if the %age was less, say 15% the BEP would
be:
£50,000/ 15% = £333,333 or £83,333 more than before.

14. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Borrowing money, at any time, is difficult – more so at present.
Most investment requests fail because of 3 main reasons:
Business owners fail to answer basic questions about the
business
Business plans fail to ‘sell’ the business.
The wrong bank is pitched.

15. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Does your plan reflect your business and its current operations?
Does it contain sufficient financial information?
Does it contain a comprehensive, 1 page, Executive Summary?

16. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Is the plan clear on the following key areas:
What the business does?
How much finance you need and what its for?
The ‘Value Proposition’?
The route to market?
The market demand?
You competitive advantage?

17. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
What are lenders looking for?
 Strong management
 Defendable strategic assets including IP
 Has a strong USP
 The business operates in a growth sector
 The business is scalable, commercial and realistic.
 Market demand is demonstrable
 The business is generating good revenue
 Its a ‘must have’ product or service
 Profitability is high and there is good cash generation
 The offer package meets customer expectations

18. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Do you know the numbers?
Turnover
Profit
Gross margin [Revenue – COGS] x 100 = x%
Where COGS is cost of goods sold
Net profit margin [Net income/revenue] x 100 = x%
Where Net income is Revenue – costs
BEP
Overdraft requirements
Capital requirement

19. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Concise. Your pitch should take no longer than 30-60 seconds.
Clear. Use language that everyone understands. Don't use fancy words thinking it will make you
sound smarter. Your listener won't understand you and you'll have lost your opportunity to hook
them.
Powerful. Use words that are powerful and strong. Deliver the "Sis-Boom-Bang" to grab their
attention!
Visual. Use words that create a visual image in your listeners mind. This will make your message
memorable.
The elevator pitch.

20. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Tell a Story. A short story, that is. A good story is essentially this: someone with a problem
either finds a solution or faces tragedy. Either type of story can be used to illuminate what you
do.
Targeted. A great elevator pitch is aimed for a specific audience. If you have target audiences
that are vastly different, you might want to have a unique pitch for each.
Goal Oriented. A kick-ass elevator pitch is designed with a specific outcome in mind. What is
your desired outcome? You may have different pitches depending on different objectives. For
instance do you want to: make a sale, gain a prospect, enlist support for an idea, or earn a
referral.
Has a Hook. This is the element that literally snags your listener's interest and makes them
want to know more. This is the phrase or words that strike a chord in your listener.
The elevator pitch.