f1_fan

iTrader: (9)

Hi all,

OK, I need to write a business plan for a new product based business with a view to attracting investment.

It's many years since I last did this and that was to secure a small bank loan that we never needed to do in the end.

So while I know a plan needs to contain

a description of the company
its products/services
the market it is aimed at
analysis of its competitors and their products
a description of the marketing methods to be used
start up cost analysis
projected sales
strengths and weaknesses of the business
business time line

I am not sure of the best way to present that in a document. Should the main part be brief and put the detail in appendices? How much should graphics be used? And so on.

Anyone out there have any advice as to which way to go about this?

TIA

Devildog

Keep it simple, factual and relevant.

So yes, keep the body brief and put the detail in the apendices.

I'd put description of the company, products and services and market segment in the body of the plan.

You'll also need to add apendices for the credentials of the directors/principals and key staff if appropriate. You'll also need short term and long term cash flow forecasts in addition to start up costs to establish your short/long term funding requirements.

Be careful with a SWAT analysis. No point highlighting weaknesses unless you can demonstrate how they will be overcome.

Above all, make it realistic and ask for more than you need to give yourself some headroom. You may want to carry out a sensitivity analysis on the effect on cashflow of lower sales than forecast, to see how robust the model is to fluctuation in sales.

HTH

Devildog

And to add, no harm in asking those from whom investment is sought if they have a preferred style. For example, if the plan is in a bank's preferred style, it will make it easier for them to process.

It also demonstrates that you are willing to match their requirements from the outset.

f1_fan

iTrader: (9)

Cheers Devildog, all useful information.

Good point on the SWOT analysis - may just leave that alone LOL!

The only weakness is the product designer is one person and without them the product is no more. Damn those creatives

Devildog

May want to ensure that you either leave that out, or ensure that the rights to the product are transferred so you can put that in the plan

MMT WRX

When I did this last the bank had a CD/DVD with the format in the form of a questionaire. They wouldn't accept it any other way.

David Lock

If I were investing I would want to know if I was dealing with a bright 19 year old or someone with a bit of maturity with some solid business experience under his belt.

Does one mention role of internet, if there is one, in these plans these days?

dl

DCI Gene Hunt

hmmm....

Avoid SWOT, SOFT or PEST type management tools - you're creating a business plan not a project plan.

What about a budget showing:

Set up costs
Marketing costs
Staff costs
Product cost
Selling point

and a few realistic projected sales figures with a bit of year on year growth. It would help more if you could say what it was you were planning to do...

f1_fan

iTrader: (9)

Yes you are right, but in this case that is OK as I am not after bank finance

Yeah agreed and I intend to mention the people behind the company in the company description, but should probably have a small bio of each of them separately.

Internet will be useful but not critical to this product's success.

Well I am pitching to individual investors and the business plan is to back up the pitch so it needs to be a bit more extensive than when seeking finance alone. I am after financial investiment, but also want someone's experience and contacts.

It's a high street luxury product and I can say no more than that right now.

Thanks for the replies.

cster

Good luck