Precision Auto Detailing, Business Plan Example

Abstract

This paper sets out the importance of developing a business plan for a small business.  The paper is set out in three distinct parts (i) Introduction and Background (ii) The Important elements and perspectives of a business plan (iii) Advice to Kyle and Chad   The paper addresses the key question of do I really need a business plan?

Introduction and Background

A business plan is important because it is in essence your resume for your proposed business.  If you’re talking to a Bank for a loan,  or talking with a potential investor you will need to produce a business plan.  The plan achieves a number of  prime objectives.  For example: it shows you have a vision for the business and the direction in which it is heading.  It demonstrates your business acumen in the preparation of budgets and financial statements.  Further, it is a tool to convince others of the viability of the business and how you approached the marketing of  your product.

The bank essentially looked the two types of business plans:

1. The concept plan: Illustrates proof of concept of your proposed business and its viability in the market place.  It explains in depth how you propose to operate the business, the approach to sales and marketing, unique services of the business and ultimately how it will generate a profit.
2. The financial plan:  This is aimed banks and investors with the express purpose of lengthy business Monday.  Such a budget forecast statement predicting economic expenditure over a period of time.  Cash flow projections are an important  part of this presentation.

The Important Elements of the Business Plan

The Concept Plan might include the following in your presentation:

• A Mission Statement for the Business
• The Products or services of the business
• The Business Philosophy and code of ethics
• Market Trend Analysis and your position in the market
• Marketing techniques and what makes your products / services special or unique
• The target market locations – where you will focus your business
• Sample Product information

The Financial Plan might include the following in the presentation:

• Income and Expenditure Forecast / Budget statements
• Cash Flow Projections
• Risk Assessment
• Break-Even Analysis
• Statement of Assets and Liabilities
• Sales Projections and Revenue Forecasts.

It is useful to investigate software packages that will assist in the construction of a Business Plan. The Federal Government of Canada supplies software to small businesses including a comprehensive grants application package for a nominal fee that can be off-set against the business taxation liabilities.

Advice to Kyle and Chad

When presenting your business plan to an investor or a Banker it is important that your plan is polished and well prepared. In addition you should be smartly dressed and demonstrate a high degree of professionalism.  ” how a potential investor first becomes aware of your business idea will be how they will remember it and you.”  (How to books, 2010).  It is best to go prepared with a number of different formats.  The best plan is for several brochurised copies an electronic presentation on either CD Rom or a USB Drive and a visual powerpoint presentation should you be required to address a group of people.

It is helpful to have a number of business references and be sure that these people have given permission beforehand.  An established business card with all of your contact details and credentials adds gravitas to your overall presentation.  The Bank also needs to see that you have performed a comprehensive risk assessment and that you have identified robust mitigation steps to address these.  Both Bankers and Investors want to determine your business acumen and as such the presentation of statistics and graphs plus any business models go a long way to support this.  Strategic objectives, such as a Balanced Scorecard approach may give you the edge.  The most important part is your confidence and ability to convince others of your prowess.  Most importantly ” How a loan will be repaid, how investors can get their money back, and when.”  (Businesslink, 2010).

Ensure your plan covers the following major sections ” Your business plan should divide into four major parts: Description of the business, Marketing section, Finance section and Management section.”  (Kish, 2010)

Works Cited

Businesslink. (2010, 8 3). Practical Advice for Business. Retrieved 8 3, 2010, from Businesslink: http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073791579&type=RESOURCES

How to books. (2010, 8 3). Presenting your Plan. Retrieved 8 3, 2010, from How to books: http://www.howtobooks.co.uk/business/business-plan/presenting.asp

Kish, N. (2010, 5 9). Important Elements of a Good Business Plan. Retrieved 8 3, 2010, from Ezine Articles: http://ezinearticles.com/?Important-Elements-of-a-Good-Business-Plan&id=4258102