Business management and all the associated activities of setting up and running a business is a very broad area indeed. In this text I do not intend to cover all the aspects and the reader is directed to the multitude of published material that can be found in any library. Instead I intend to provide a brief overview of some of the aspects of business management and organisation which includes the following, Business Plan
Effective Business Plans
Writing a business plan is an opportunity to present your ideas to various individuals and bodies depending on what stage of business development you are at. It is also very useful to giving you an idea if the business is as you initially imagined it to be. It is important to note that a business plan should be a candid reflection of all the aspects of the business proposal so that everyone reading it has all the information that is available, fully analysed and presented in a suitable manner. Your business plan must communicate effectively your business proposal, demonstrate that you are competent, that your proposal is practical, and the business plan must inspire confidence.
Some tips on writing a business plan [http://www.innovateur.co.uk/key.html]
• Use clear and precise language to communicate ideas. Be precise and avoid unnecessary information, even if it may be relevant.
• Be absolutely clear about what you want from the investors or those reading your plan. If you want £25K for a 25% share of your business, then make sure that you say it clearly and unambiguously.
• ensure that whatever you say can be verified, or if it cannot then clearly say so. For example, “XYZ [xyz] have shown that market share has increased by 5% last year..” or, “Presently there is no data available to support this, but I believe that the public is ready and waiting for my product/service etc..”
• make sure you have quantified the market size, major trends, and your objectives. Additionally clearly identify where your business idea fits in with these. If there are any clashing aspects, be sure that you can justify these. Be relevant and specific with information.
• explain the assumptions behind your financial plan. There are many aspects to a proposed plan that need estimation. There is nothing wrong with this, but be realistic in all the assumptions and estimates.
• keep you cost forecasts realistic; sufficient so that the business requires to become viable. Remember, you want someone to invest in something that will make money. The quicker that they are able to return their investment and start making a profit (ie the pay back period), the more likely they will invest.
The Main Body of the Business Plan
Business plan template
A vast number of templates can be found in literature but as a minimum the template should include the following sections, 1. Title Page
2. Executive Summary
3. Problem and Solutions
4. Technology Description
5. Market analysis
6. Market Plan
8. Management Structure
10. Risk Analysis
This section is extremely important because it the section that everybody reviewing your plan will certainly read. Based upon their assessment of this section they may or may not read the rest of the business plan. It is therefore very important that the executive summary is written with this in mind. Like the rest of the report this section must be written in a clear and concise language, and it should be absolutely clear on what the business is about and what you want from the investor or another person that is the designate reader of your business plan. Once again there are a large number of sources to reference but the following list covers the...