Writing a business plan

[morejuiceplease]

Not sure if I've posted this in the right section but there isn't a 'starting your own business' topic.

Basically I've seen a business for sale that I would like to buy. Have spoken to the current owners, done some research and I think I can make a success of it.

I need to go to the bank to see about a business loan, and I'm guessing they'll want to see some kind of business plan but I've no idea what you would put in it.

Has anyone done this before that could help?
I'd be really grateful as I really have no idea when it comes to this.

Have a look on the bank web sites, they usually have a list of things they expect. Normally it would include costs for the period of the loan, so cost of business, lease, stock, loan repayments, insurance and salaries.

Then a breakdown of projected income to cover all the costs. The sellers should have lodged audited accounts that you can look at for the last few years.

How would you cope if the interest rate trebled? How do you intend to grow the business, what will you specialise in? And then how your skills are relevant to the business. Plus check with the council there isn't a big competitor opening next door. Why are the owners selling?

I'd post this in the freelance / self employed section.

Also, speak to Business link - they have super advisors and lots of online help.

And search the women in business sites, you might be able to find a mentor who can help.

Good Luck!!

If it's an existing business, take a long, hard look at their trading history.

Essentially a business plan is quite simple (although you can make it very complicated!). It should show how much money you forecast you will make (turnover/revenue), and then show how much profit you will make once the running costs of the business are covered.

You should also consider writing a marketing plan - i.e. how are you going to generate this business, who is your target customer, etc

And as well as the business plan you should also do a cashflow forecast, on a month-by-month basis. You can have a successful business but still fail if you can't get your cashflow sorted out.

But the history of the existing business should give you a really good insight into all of this. And make sure you really know why the owner is looking to sell.