How to Prepare a Business Plan.pdf

How to

Prepare

a Business

Plan

THIS PAGE IS INTENTIONALLY LEFT BLANK

iii

How to

Prepare

a Business

Plan

5th edition

Edward Blackwell

KoganPage

Throughout the book ‘he’ and ‘she’ are used liberally. If there is a preponderance

of the male pronoun it is because the inadequacies of the English language do not

provide a single personal pronoun suitable to refer to both sexes.

Publisher’s note

Every possible effort has been made to ensure that the information contained in this book is

accurate at the time of going to press, and the publishers and authors cannot accept respon-

sibility for any errors or omissions, however caused. No responsibility for loss or damage

occasioned to any person acting, or refraining from action, as a result of the material in this

publication can be accepted by the editor, the publisher or any of the authors.

First published in Great Britain and the United States in 1989 by Kogan Page Limited

Reprinted 1989

Second edition 1993, reprinted 1994, reprinted with revisions 1996

Third edition 1998, reprinted 1998

Fourth edition 2002, reprinted 2002, 2003, reprinted with revisions 2004, reprinted 2006

Fifth edition 2008

Reissued 2011

Apart from any fair dealing for the purposes of research or private study, or criticism or review,

as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be

reproduced, stored or transmitted, in any form or by any means, with the prior permission in

writing of the publishers, or in the case of reprographic reproduction in accordance with the

terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms

should be sent to the publishers at the undermentioned addresses:

120 Pentonville Road

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United Kingdom

1518 Walnut Street, Suite 1100

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USA

4737/23 Ansari Road

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www.koganpage.com

The right of Edward Blackwell to be identiied as the author of this work has been asserted by

him in accordance with the Copyright, Designs and Patents Act 1988.

ISBN

978 0 7494 6252 9

E-ISBN

978 0 7494 6253 6

British Library Cataloguing-in-Publication Data

A CIP record for this book is available from the British Library.

Library of Congress Cataloging-in-Publication Data

Blackwell, Edward.

How to prepare a business plan / Edward Blackwell. – 5th ed.

p. cm.

ISBN 978-0-7494-6252-9 – ISBN 978-0-7494-6253-6

1. New business enterprises–

Planning.

2. Strategic planning.

3. Proposal writing in business.

I. Title.

HD62.5.B55 2011

658.4 ′ 012–dc22

2010038297

Typeset by Graphicraft Limited, Hong Kong

Printed and bound in India by Replika Press Pvt Ltd

Contents

Acknowledgements vii

Introduction 1

Writing a business plan 4

Clarity 4

Brevity 5

Logic 5

Truth 5

Figures 5

Designing the business plan 5

Deciding how much to write 6

Getting down to it 6

How to set about it 7

Tackling each section 7

Simple cash low forecasts 17

Is a cash low forecast of any real use? 18

Principles to observe when illing in a simple cash low

form 19

The break-even analysis 31

The very small business 34

Example 3.1: Alexander Battersby 36

Example 3.2: Nicola Grant 50

Retail and catering 54

Example 4.1: Flurry Knox 59

Example 4.2: Robert Herrick and Deirdre Williams 63

Catering 72

Example 4.3: Osbert Wilkinson 73

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