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When starting a new venture, it is a good idea to get as much advice as possible from the broadest range of sources, particularly on legal or financial issues, or for help creating a business plan. Retail is not an industry to be entered into lightly, especially in the current economic climate, so doing as much preparation and research as possible beforehand is doubly important.[2]

Compiling your business plan can seem like the most difficult and the least exciting part of starting a new business, but it really is the most important.

While you are getting carried away with product development, choosing a nice logo and dreaming about which shops you will see your product in, it is easy to forget about the more practical aspects of running a business. Creating a business plan will help you see your start-up from an objective viewpoint and give you a true idea of how successful you are likely to be. It is also vital if you need to secure any type of finance as you will need to present it to potential lenders or investors.

The best way to put together your plan is to take it step-by-step. Create a draft of each section and then perfect it afterwards once the hard work is done. Here is a brief guide to the structure and content of a typical business plan.

1. Create a brief description of yourself and your business

This should be the easy part and it will get you warmed up. You first need to write a summary of your own experience, your qualifications, and how you came upon your business idea. Then answer questions about your product or business: What does it do? What are the benefits for customers? Why you think it will be successful. Who is it aimed at? What makes it different?

Include the start date for trading and if the business has already launched, describe your progress to date. Write down the type of business and the sector (leaving out any jargon), and if you are buying the business from someone else include details about the history and past performance. You also need to state the legal structure of the business and list any patents or rights you have bought.

Finally, describe where you see the business going over the next few years.

2. Your customers, competitors and research

Deciding exactly which markets you want to target will help give your business activities focus. In your plan you should include customer profiles, i.e. who are they, where do they live, what types of products do they buy and what type of lifestyle do they lead? Once you have done so, go back to your business description and make sure that the product or service you are offering matches your target market.

In this section you should also give information about your competitors. Even if you feel you have a unique product, you will always have competitors so think this through carefully. Re-iterate what separates your business from your competition.

If you have conducted any research into the viability of your business, which supports your projections, include it here.

3. Sales and marketing

Often a last minute job when starting a business, putting together a sales and marketing plan is actually very important, especially when you think that this will be the means by which you tell the world that your business exists.

Use this section to describe how you will bring your product or service to market. Specify where you expect customers to be able to buy your product, listing which types of retailer you will target and whether you plan to sell online, offline or both. If you are selling a service, how will people get to know about it? List the marketing channels do you plan to use, such as PR, advertising, online, direct mail etc., and ad detail about how each will benefit your business.

Think about your position within the market and how you can create a niche for your business in the minds of your customers. If you have developed a brand, or plan to, include details and even any designs you have prepared.

Particularly important is how you price your products and you should include justification for your decision in the plan.

Finally, write a sales plan including which suppliers, retailers or customers you intend to target.

4. Your team

You may be setting up your company alone, in which case this section will be short. In this situation you write down your plans for hiring staff in the future and how this will impact on your business growth.

If you are starting your business with a team of people, however, you should use this section to elaborate on their skills, experience, interests and how each person will contribute to the business.

Give expected salaries or wages where available or if you do not plan to take a salary immediately you should say at what stage you are expecting to start.

5. Operations and Infrastructure

This is potentially the most helpful part of writing a business plan. It will help you get to grips with the many aspects of running your own business and remind you of tasks which you have yet to complete.

These topics should be included in your plan:

• Business premises – this should cover costs, location, whether you rent or own it, insurance and future plans for expansion

• Infrastructure – think about what technology and equipment you will need to get started

• Facilities, tools and stock – suppliers, new or second hand items, insurance

• What investment is needed?

• Start-up costs

• Your provision for: managing accounts, payroll, health & safety, quality control

6. Financial Projections

This is the most daunting part of writing your business plan, but you can download various free templates on the internet that should help you with the structuring of it. Your plan should cover at least a three year period, with the most detail showing for the first year.

Create a separate spreadsheet for each of the following: Cash flow plan (your cash balance and monthly flow patterns, considering all outgoings) Profit & Loss (the level of profit you expect to make over time, given sales and outgoings) Sales Forecast (how much income do you expect to get from sales)

Make sure you include all your outgoings, even the most insignificant, so that you get a true profit projection. Do not forget: premises (rent or mortgage payments), power (gas, electricity etc.), telephone, insurance, postage, stationery, equipment machinery or tools, advertising, bank charges & interest, wages / salaries, vehicle expenses, accountancy fees, legal / professional fees, tax, depreciation. Some items should be broken down further in the cash-flow plan, for example: bad debt provision, loan and financing repayments and VAT payments.

In addition to your spreadsheet, include a summary which details any capital you need, security you can offer lenders, a debt management plan, sources of revenue and any personal financial information you feel is relevant.