Briefing Paper No 5c

Briefing paper 5c
From Market Research To Financial Projections

Business Name: AN OUTLINE OF YOUR BUSINESS PROPOSAL

1 Estimate of Personal Worth

Most people need to raise money for their business. If you intend to borrow money from any source other than family (e.g. your bank) you will probably have to give details of your assets. The form below provides an easy-to-use format for this purpose. If you need additional space or want to use a different format, feel free to replace this with your own notes. £ Property Value of house Value of other property Savings/Insurance Surrender value of insurance policies Cash in bank/on deposit Other Assets Value of car(s) Other realisable assets (things you can sell to raise money) Total Assets Liabilities Outstanding mortgage Regular payments Other outstanding loans Bills currently due for payment Total Current Liabilities Estimated Net Assets (Total assets less total liabilities)

2 Survival Income

Few new businesses make much money in their first year. Use the form below to work out how much you and your family need to survive in the next 12 months. £ per annum Estimated Expenditure Mortgage/Rent Rates and water rates Gas, electricity & oil All personal & property insurance Food, general housekeeping expenses Clothing Telephone Hire charges (tv, video, etc.) Entertainment, (meals and drinks) Subscriptions to associations, journals etc., Car - tax and insurance Car - running expenses Car - service and maintenance Childrens' expenditure and presents Savings plans HP repayments Other (please state Contingencies Sub-Total (a) Expenditure Estimated Income Income from family/partner (total) Other income (please state) Sub-Total (b) Income Total Survival Income Required in the Year i.e. (a) - (b) * * If your estimated income (b) exceeds your estimated expenditure (a) you should decide how much money you can invest in your business.

3 BUSINESS PLAN

1. NATURE OF BUSINESS
a) Details of trading activities. d) Formation (i.e. sole trader, partnership, limited company). b) Date of commencement e) VAT consideration (Remember you will be liable for VAT Registration if you exceed the limits in any 12 month period). c) Expected date of commencement (new business only)

2. OWNERS/MANAGERS AND PRESENT COMMITMENTS
a) Short personal and business background including age, family commitment, qualifications, skills and experience (attach your CV). b) Are you employed at present and what is your position? (New business only.) c) Specialist training courses required.

3. OBJECTIVES
What do you/your business hope to achieve over the next one to three years? 4. MARKET a) Describe the market you can serve. b) Detail your product/service. c) Details of current competition. (i.e. who, where and competitive pricing)

4. MARKET (cont.)
d) Explain how you can achieve success in this market. e) Describe how you plan to sell and promote your product/service. f) Who are/will be your major customers, and what indications have you got that they will buy from you? g) What knowledge and experience have you of the industry you propose to enter?

5. PREMISES, PLANT, FITTINGS, VEHICLES ETC.
a) Premises Details of premises, freehold or leasehold, including internal floor space area, cost of annual rent or estimated cost or estimated rental and loan finance. b) Plant and fittings Details of present plant and fittings including estimated value and hire/lease purchase commitments. c) Vehicles Details of present vehicles including estimated value and hire purchase commitments.

6. PRE START UP COSTS
How much and on what will you have to spend in order to get started.

7. INVESTMENT REQUIRED
Finance required for capital investment in premises, eg legal costs, surveys, alterations, architects' fees etc. …… £ _______ Finance required for working capital ……………………………………………………………………………… £ _______ Finance required for equipment - please complete the following: Type and make of equipment New/ Second hand Price Installation Charge Carriage Charge VAT Total Finance required for equipment …………………………………………………………………………..
£ TOTAL FINANCE REQUIRED £ _____________

8. SOURCES OF FINANCE
Private Sector Own Resources £ ______________
Bank £ ______________
Other Private Sector £ ______________
Total Private Sector £ ______________
Public Sector Loan/Investment £ ______________
Grant £ ______________
Other Public Sector (Local Authority, Enterprise Allowance, etc.) £ ______________
Total Public Sector £ ______________
Any Other Source (specify) £ ______________
Total Finance Required £ (To agree with the total at 7 above) ______________

Note: Projected borrowings must show the repayment arrangement and % rate assumed together with the terms of the loan. Consider margin to cover unforeseen circumstances.