E-Book Overview
The first step in starting up a business is to draw up a detailed plan. Most providers of finance for start-ups or expansion insist on seeing a business plan before they will even consider the necessary funding. A business plan is also necessary for entrepreneurs to clarify their aims and objectives. A business plan is essential" it provides a blueprint for the future of a company and a benchmark against which to measure growth. This fully updated edition of the best-selling "How to Prepare a Business Plan" explains the whole process in everyday terms, covering: * writing the plan; * producing cash-flow forecasts; * planning the borrowing; * expanding the business. The author introduces several small businesses as case studies, analyzing their business plans, monitoring their progress and discussing their problems. Whether you are looking to start-up or expand, this practical advice will help you to prepare a plan that is tailored to the requirements of your business -- one that will get you the financial backing needed.
E-Book Content
How to Prepare a Business Plan
How to Prepare a Business Plan THIRD EDITION Edward Blackwell
First published in 1989, reprinted 1989 Second edition 1993, reprinted 1994; reprinted with revisions 1996 Third edition 1998 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms of licences issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms should be sent to the publishers at the undermentioned address: Kogan Page Limited 120 Pentonville Road London N1 9JN © Edward Blackwell 1989, 1993
British Library Cataloguing in Publication Data A CIP record for this book is available from the British Library. ISBN 0 7494 2633 0
Printed and bound in Great Britain by Clays Ltd, St Ives plc
Contents
Acknowledgements Introduction
vii 1
1. Writing a Business Plan Clarity 5; Brevity 5; Logic 6; Truth 6; Figures 6; Designing the business plan 6; Deciding how much to write 7; Getting down to it 7; Tackling each section 8
5
2. Simple Cash Flow Forecasts What is a cash flow forecast? 17; Is a cash flow forecast of any real use? 18; Principles to observe when filling in a simple cash flow form 19; The break-even analysis 28
17
3. The Very Small Business
31
4. Buying a Retail Business
55
5. Manufacturing
69
6. Expanding a Business
83
7. The Market
95
8. Planning the Borrowing
99
9. How Not to Write a Business Plan – or Run a Business
109
HOW TO PREPARE A BUSINESS PLAN
10. Maintaining the Plan
115
11. Small Business and the Trade Cycle
121
12. Monitoring Progress
127
13. Where to Go for Further Advice
147
vi
Acknowledgements for the Third Edition
In preparing yet another edition of this book I have been helped by a young accountant, Peter Allen, of Walter. J. Edwards & Co (Chartered Accountants) of Walsall. He has gone through the text to eliminate, as far as possible, whatever might misleadingly be out of date. We have added a new chapter as well, in order to emphasise the overwhelming importance of having one’s bookkeeping up to date and thus preventing, as time goes by, good planning being washed away. Once more I must say that nothing would have been achieved without the dedication of my wife, Hildegard, to correcting my English,