Feasibility Study

Topics: Balance sheet, Strategic management, Marketing Pages: 36 (5709 words) Published: June 20, 2013
Business Plan

(type in trading name)

(type in address)

(address continued)

(telephone number)


(email address)



Prepared (date)

By (name of author)

Purpose of the business plan

Explain why you are writing the plan: is it to secure finance? a management tool? or an operational guide for the business?

If the plan is intended to support an application for finance, state the name of the bank or other financier to whom the application is being made, the amount of finance being applied for, the term of the loan and the security you’ll be providing the bank. State what the loan will be used for and how it will be repaid: eg from additional revenue generated as a result of borrowing the money.

Also remember to date the plan and note the author.


Although it appears at the beginning of the plan, the summary is usually written last.

It provides a broad overview of your business and what distinguishes your products or services from your competitors. It may include a statement about your business values and ethics along with your key objectives and any critical factors to the success of your business venture.

Try to keep the summary to around a page and a half, and include a brief overview of the following:

• the business and its proprietors;
• the products and services on offer, the benefits they provide, and who will buy them; • the business’s overall objectives and competitive advantage; • the marketing strategy;
• the operational performance (if already operating) stating sales, profits and markets; and • key figures from the financial forecasts.

The business5
Mission statement5
Business objectives5
Description of business activity5
Commencement date5
Commencement capital5
Business structure6
Competitive advantage6
Owner or owners’ profiles6
Major clients7
Licences and registrations7
Business advisors7
Current performance9

Industry analysis10
ANZSIC category:10
Key success factors11

Marketing plan12
Market and situation analysis12
Market segmentation and customer analysis13
Objectives and goals14
Strategies and tactics15

Operational strategy17
Location and premises17
Plant and equipment17
Major suppliers19
Number of days stock to be held19
Stockturn rate20
Reorder points20
Pricing of products/fee structure20
Fee Structure21
Personnel (human resources) strategy22
Strategic alliances23
Environmental strategy23

Financial strategy24
Financial objectives24
Capital structure: debt equity ratio and working capital24 Sales, purchases, debtor collections and payments forecasts25 Cashflow forecasts25
Income statement and balance sheet forecasts26
Balance sheet27
Breakeven analysis27

The business

Mission statement

A mission statement is aimed at your customers and should sum up in simple terms what you do, how you do it and why.

Business objectives

Business objectives define what the business is aiming to achieve.

Your objectives should be measurable and include a mix of short and long-term goals.

It’s a good idea to include your personal objectives in this section which should underpin your reasons for going into business. This is also where you outline your exit strategy for the business which may include passing the business on to your children, seeking investors or partners or selling the operation to fund your retirement. Consider how your exit strategy fits with your business and personal objectives.

Name, address and contact...
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