Business planning is not just about the finances, it should cover how the business is formed, how it will work and run (including staffing, funding and legal issues) and how it will be promoted to meet the customers' needs.
Things to consider
- What you want to do
- How you plan to do it
- How you will pay for it
- How to make it a success
Make sure there is a need. Before starting the process you first need to know if there is a requirement for the business. Undertaking market research should provide an indication of the level of need within the area, and should highlight where there is competition. Once this need is established you can then ensure that you will be meeting it. To help you establish the local need in your area refer to the market research section.
Know what you want the business to be. You also need to have a clear idea of what the business is and how you want it to develop. This is not set in stone, in fact you will need to be flexible to keep meeting the needs of the customers. However setting solid foundations for the business will ensure that there is something to build on.
Undertaking a SWOT analysis to highlight your key Strengths and Weaknesses, and the Opportunities and Threats in the market help to focus on the areas where extra resources may be needed and identify some strengths that you can use to promote to your customers.
Know how you are going to get there. An action plan will help to break down all of the steps to setting up and running the business. This offers a framework to work within but should be reviewed to ensure that it remains appropriate for the business and the market. Making these steps realistic and measurable will ensure that you can keep moving forward.
There is a number of key areas which need to be looked at.
Finances: A Cash flow will show how money will move through the business and help keep a check on your finances.
Marketing: Who are your customers and how will you communicate with them. Think about the types of promotion, (e.g. advertising, events, press) you can use to get children.
Staff: What staff are required and what skills do they have or will need to develop, contact our training officer to find out what qualifications and training requirements your staff will need in your setting (or follow link to training calendar etc)
Form of the business: how it will be set up and run e.g. committee (link to business formations section)
Funding: How are you going to pay for the business. You need to establish how much money is needed, where this can be found, and if necessary how you will re-pay it.
It is recommended that this all of this information should be written up and presented in a clear and logical way. Once completed, it is not a static document, it must be reviewed to ensure that it is remains relevant and workable. These documents, called Business Plans, are also often required when bidding for grant money and show potential funders that you have a plan for the future.