14.5. Potential Support for a Business Plan

Why do businesses need support?

The main aims of a business are to raise finance from sources external to the business, such as banks, and to provide a means of monitoring and evaluating the progress of the business over time by comparing outturn to plans. Although a wide range of people may expect to see a business plan, would-be entrepreneurs are not expected to produce the business plan single-handed. A wide range of help and advice is available.

When writing a business plan for a new venture, the following kinds of expertise will be needed:

• Financial: to help construct a cashflow forecast, open a balance sheet and profit and loss statement, and advise on VAT, National Insurance, and income tax

• Legal: to assist in registering a company and drawing up contracts with suppliers, customers, and staff

• Human resources: to advise on employment law, advertising, recruitment, selection, and training

• Production: to help set up, run and manage production facilities, develop products, select suppliers, machinery, and premises, and negotiate contracts

• Sales and marketing: to organize market research, create and implement a sales and marketing plan, determine product promotion, distribution and selling strategies, sales targets and after-sales service

• Management: to assist in setting realistic and achievable deadlines and targets for parts of the business plan. This kind of experience is also needed in order to advise on establishing monitoring and review systems for the business.

• IT: increasingly firms are making use of new technology to help with administration, communications, and information processing. Buying and installing IT will require some technical knowledge.

For an existing business considering expansion into a new venture, advice on the above areas is likely to be available from staff already working in the accounts, administration, human resources, production, and sales and marketing departments. But for those businesses newly starting up, advice and support from a variety of external sources will be required. Existing organizations can also take advantage of this support.

External sources of business support

A wide range of organizations and individuals can provide advice to busi­ness start-ups:

• Accountants will be able to assist with the creation of cashflow forecasts and initial accounts, as well as with setting up accounting systems in the new firm.

• Banks now all have special business start-up advisers at their local branches, who will offer help, particularly on finance, or suggest other sources of advice.

• Independent financial advisers can investigate and advise on the best sources of business finance and the costs involved, but will charge for this service.

• Solicitors can advise on all legal matters relating to the purchase of leases or freeholds, registration of companies or partnerships, and contracts.

• ‘Business Angels’ are individuals and organizations willing to invest money in small businesses in return for a share of profits.

• Local authorities can offer advice and information to businesses in their area to help with marketing, locating premises, training, and raising finance.

• Local Enterprise Agencies offer a ‘one-stop shop’, providing advice and counselling on all aspects of business start-up, often at little or no charge.

• Chambers of Commerce are run by local employers, and can be a good source of advice on practical matters. They will also be able to point out all of the available sources of advice to business start-ups.

• The Department for Trade and Industry (DTI) can provide practical help and guidance through its Enterprise Initiative. This includes:

  • financial assistance to help small firms obtain specialist advice on marketing, design, business planning, management information systems, and other topics

  • regional selective assistance to firms in development areas

  • assistance for innovation, including grants towards collabourative research projects, and access to existing technology through case studies and information

  • access to relevant overseas information and advice to exporters

A host of specialist organizations and consultants exist to provide advice on every aspect of running a business from research and development to production and marketing, communications systems and management structure. However, this advice may be expensive.