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ans Serif" color="#008000">REASONS FOR PREPARING A BUSINESS PLAN

• ans Serif" color="#5B5B5B">It is a valuable tool for the development, expansion and ongoing operation of a business, whatever the sector the business may be in
• ans Serif" color="#5B5B5B">It helps the business to work smarter, not harder
• ans Serif" color="#5B5B5B">It will be necessary when you are selling the business to investors and lenders
• ans Serif" color="#5B5B5B">It specifies the objectives of the business and how these are to be performed
• ans Serif" color="#5B5B5B">It forecasts the assets that will be required by the business to achieve these objectives (plant, vehicles, buildings, staff, cash)
• ans Serif" color="#5B5B5B">It enables the businessman to establish what commitment he is prepared to make to the business
• ans Serif" color="#5B5B5B">Acts as a measure against which actual results can be measured and appropriate steps taken for variances
• ans Serif">Planning significantly increases chances of success.

ans Serif" color="#008000">MAIN COMPONENTS OF A COMPREHENSIVE BUSINES PLAN

ans Serif" color="#008000">Cover Sheet

• ans Serif" color="#5B5B5B">Identifying information e.g. business name, address, principals

ans Serif" color="#008000">
Executive Summary

• ans Serif" color="#5B5B5B">Outlines the business plan, its major objectives, how these objectives will be accomplished and the expected results
• ans Serif" color="#5B5B5B">It is just a summary so should be reasonably short

ans Serif" color="#008000">
Table of Contents

• ans Serif" color="#5B5B5B">Gives headings and page numbers for contents of the plan

ans Serif" color="#008000">
History of the Business

• ans Serif" color="#5B5B5B">History of the business

ans Serif" color="#008000">
People

• ans Serif" color="#5B5B5B">Information about the principals- their positions, experience, skills, qualifications
• ans Serif" color="#5B5B5B">Numbers to be employed and in which job functions

Location

• ans Serif" color="#5B5B5B">Location
• ans Serif" color="#5B5B5B">Premises
• ans Serif" color="#5B5B5B">Will premises be sufficient for business plan
• ans Serif" color="#5B5B5B">Details of lease agreement if applicable

Product

• ans Serif" color="#5B5B5B">Listing of its products and services
• ans Serif" color="#5B5B5B">Any trade marks, patents held
• ans Serif" color="#5B5B5B">Past and future development of the product or service
• ans Serif" color="#5B5B5B">Major suppliers of raw materials

ans Serif" color="#008000">
Marketing

• ans Serif" color="#5B5B5B">Target trading area and customers
• ans Serif" color="#5B5B5B">Promotion strategy
• ans Serif" color="#5B5B5B">Distribution strategy
• ans Serif" color="#5B5B5B">Price strategy
• ans Serif" color="#5B5B5B">Competitors -  who they are, their strengths and weaknesses