Your Team

This section addresses the people working in your business and how you plan to manage your business. Include:

• a brief organizational layout or chart of the business;

• biographies of the managers (including yourself)

• who does what, with a brief job description of each position

• the needed skills of each position

• any other relevant information related to personnel

Don’t underestimate the importance of this part of your plan. Investors need to know that you and your staff have the necessary balance of skills, drive and experience to enable your business to succeed. It is also advisable to outline any recruitment or training plans, including time scales and costs.

Operations

This section of your business plan should outline your operational requirements, including your day-to-day requirements, facility requirements, management information systems and information technology requirements, and any planned improvements.

Things to include:

• Day-to-day operations – provide a general description of the day-to-day operations of the business, such as hours of operation, days open, seasonality of business, suppliers and their credit terms, and so on.

• Facility requirements – identify your requirements in terms of size and location. Include any related documents in the appendix of your business plan, such as lease agreements or supplier quotations. Detail any special requirements associated with the facility and include any licensing documentation in your appendix.

• Management information systems – indicate how you plan to control stock, manage accounts, control quality and track your customers.

• Information technology (IT) requirements – identify the IT systems you will be using for your business. As this is a key factor for most businesses, indicate if you are using a consultant or IT support service and outline any planned IT developments.

• Management and Operations

• E-Business

• Programs and resources to help you do business over the Internet.

Financial Forecasts of a Business Plan

This section of your business plan essentially turns your plans into numbers. As part of any business plan, you will need to provide financial projections for your business. Your forecasts should run for the next three to five years. However, the first 12 months' forecasts should have the most details, including assumptions both in terms of costs and revenues, so investors can clearly see your thinking behind the numbers.

Your financial forecasts should include:

• cash flow statements – this is a cash balance and monthly cash flow pattern for the first 12-18 months. It includes working capital, salaries and sales

• profit and loss forecast – this is the level of profit you expect to make, given your projected sales, the costs of providing goods and services, and your overhead costs

• sales forecast – this is the amount of money you expect from sales of your product and/or service

Things to consider:

• How much capital do you need, if you are seeking external funding?

• What security can you offer to lenders?

• How do you plan to repay any borrowings?

• What are your sources of revenue and income?

• Forecasts should cover a range of scenarios.

• Review risks and develop contingency plans to offset the risks.

• Review industry benchmarks/averages for your type of business.

• Managing your finances

Resources to help you understand financial concepts and learn about tasks like budgeting, financial analysis and bookkeeping.

• Performance Plus

Find out how your firm measures up to comparable small businesses within your industry.