Small business and tax blog

Here is our recommended outline of what to include when preparing a business plan to present to a bank, for the purpose of securing funding for a small business.

• If an existing business is being taken over, give an overview and history of that business. Include recent accounts and the vendor’s agent’s details of sale.
• Details of the business partners. Their skills, qualifications, business history and experience. Contact details.
• The proposed legal structure and ownership of the new business.
• Location of the business premises and offices. General condition, and how they are organised. Details of leases.
• Overview of the industry and local market. Scope for expansion, and total size of potential market. Main customers, competitors and suppliers.
• The marketing plan.
• Any legal issues or trading risks particular to the industry. What insurance is planned.
• Any copyright, trademark or patent issues.
• Staffing plans. Recruitment plans. Payment rates. Business opening hours. Holiday cover.
• General plans to develop the business (investment in equipment, advertising, new services etc). Refer to the spreadsheet forecasts. Justify the sales that have been forecast.
• A summary of funds invested by the business partners, and further financing required. Whether any security is available for the borrowing. Living expenses needed by the partners.
• A monthly or quarterly cash flow forecast.
• A monthly or quarterly profit and loss forecast.
• A break-even analysis, showing the net profit for varying levels of sales.