Bizstartup.ie - Biz Centre

The business plan has many important uses from proving the viability of the business, to securing funding and measuring the success of your business.

The following parties may request a copy of your business plan:

• Banks
• External investors – from business angels to venture capitalists
• Grant providers
• Potential business partners
• Anyone interested in buying your business
• Potential investors may invest in your idea, work with you or lend you money on the strength of your business plan.

A good business plan should:

• Detail the business name, address, owners and legal status
• Clearly outline your business idea, aims and goals
• Provide detail on the marketing plan and strategy, including details of your target market, unique selling proposition and competitor information
• Demonstrate/illustrate the viability of your business through sales targets and objectives
• Outline operational requirements including premises, equipment, staff, suppliers, licensing, etc
• Include a breakdown of your current financial position. It should also detail your financial requirements, sources of finance available and any additional requirements you may have.

It is also important to bear in mind that your business plan is a living document and requires updating as your business grows. There are many benefits to creating and managing a realistic plan.

A business plan can:

• Help you identify potential pitfalls before they happen
• Structure the financial aspects of your business effectively
• Measure the success of your business against your objectives
• Help you to focus on what you need to do to develop your business.

We recommend that you seek professional advice from your accountant and/or solicitor when writing your business plan. You can also seek the support of various business organisations and state agencies – Chamber of Commerce, ISME, SFA, Enterprise Ireland and your local County/City Enterprise Board – that can offer useful advice and information.

A good starting point is AIB’s Business Plan Template.

This article appears courtesy of AIB

This article © copyright Allied Irish Banks, p.l.c. 2010. The information does not constitute tax, legal, investment or any other advice by AIB. No representations or warranties are made as to the reliability, accuracy or completeness of the information.