Business plan

Below is a business plan from Lloyds TSB. I have began answering some of the questions and I plan to have this as something on-going. I can't, for example, give any details as to costs or loans I would need at this point.


BUSINESS START-UP PROPOSAL

by

[Name] Adam Townend
[Address]


Current banking arrangements
Bank name: [Bank]
Branch name: [Branch]
Sort code: [xx-xx-xx]


Contact details
Telephone: [Telephone]
Mobile: [mobile]
Fax: [Fax]
Email: [email address]


[Date] 22/01/10


The business idea


Business name
The proposed name for the business is [name] Creative Cave

Business idea
The business idea is [describe idea] to offer my graphic design services to the music industry as a freelancer.

Key success factors
[Describe the background to the business idea, and the reasons why you believe the business will be successful. For example, whether similar businesses already exist in your area, what your advantage over them will be, or if this is an original product / service which no other businesses in your local area already offer.]

They are no immediate competitors to my business and I believe I can assist a selection of both independent and larger clients (record labels) due to the flexibility I have on working hours and lack of overheads at this point. My main advantage over other businesses will be this flexibility.

Location of business
The business will be based at [my home / workshop premises / shop premises / office premises / other] my home until the business has a secure financial base to enable me to move into an out of town studio premises. The premises will allow me to have more inhouse meetings and briefings, and will also give my clients more confidence in what I am trying to achieve and also gain an understanding of what I do.

Target market
[Describe the type of customer which your business is aimed at, and the geographic area in which your business will operate. Also describe why you believe customers will be attracted to your particular business over any other businesses or products that may already exist.] My target would initially be smaller independent local record companies which will help me gain knowlegde about what is required whilst trading, and also build up a portfolio as well as a good reputation. This will enable me to pitch for the bigger projects with mainstream labels both nationally and internationally.

Skills and abilities
[Describe the particular skills, qualifications and abilities you have which will help make the business a success, including, for example, previous jobs or businesses.] I am currently studying for a BA Hons Degree in Graphic Design, where I can expand my knowledge in all areas of the industry, as well as the business side of the industry by building up a prior knowledge of where I fit within the industry. This will enable me to get a good footing in the future. Besides this I specialise in design for print. I have knowledge of all industry standard software such as Adobe Photoshop, Illustrator, InDesign, and After Effects. I also work with other software such as Quark Xpress and DVD Studio Pro.

Business partners
[Describe any business partners who will be involved in the business, including their skills, qualifications and experience, and the roles each of you will perform.] None

Staff and employees
[Describe the numbers and types of key staff and employees you intend to recruit, including the principal roles and positions which will need to be filled.] None




Financial resources available


Capital available from savings and investments
I am/We have savings and investments which I am/we are able to put into the business, totalling £[xx].

I/We also intend to raise additional capital of £[x] from [describe where you will raise this from].


Income from sales
I/We estimate that income from sales will be £[x] per month during the first 6 months, starting from month number [x].

In the second 6 months, I/We estimate that sales income will be £[x] per month.

[Describe the basis for these estimates.]


Grants and training support available
I/We understand that financial support may be available from the following organisations:
[list organisations].

I/We estimate that I/We will receive financial support in the first year totalling £[x].


Security available
I am/We are able to offer the following assets as potential security against any loans which I/We may require:

Estimated market value of home: £[x]
less: outstanding mortgage: £[x]
less: other loans secured on home: £[x]
Resulting estimated equity in home: £[x]

Security available from other sources:
[list other sources of security, and estimated value.]


Start-up loan
I/We estimate that I/We will require to borrow a total of £[x] from Bank of Scotland as a start-up loan. [You can omit this section if preferred, and discuss loan requirements with your Bank of Scotland Manager.]


Business expenditure and costs

Personal remuneration
I/We need to pay myself/ourselves a total of £[x] per month for the first 6 months of the business, and a total of £[x] per month for the second 6 months of the business.


Start-up costs
I/We expect to incur expenditure on the following items before opening the business:

Equipment: £[x]
Machinery: £[x]
Vehicles: £[x]
Computer System: £[x]
Fittings for Premises: £[x]
Raw Materials: £[x]
Advertising and Promotion: £[x]
Insurance Premiums: £[x]
Professional Fees: £[x]
Other [list other items]: £[x]
Total: £[x]

Running costs
I/We expect to incur the following running costs during the first 6 months of the business:

Rent on Premises: £[x]
Rates on Premises: £[x]
Gas/Electricity Usage: £[x]
Telephone Charges: £[x]
Wages (for others, not yourself): £[x]
Advertising and Promotion: £[x]
Fuel costs & Vehicle Road Tax: £[x]
Despatch Costs: £[x]
Professional Fees: £[x]
Other Items (including stationery) [list other items]: £[x]
Total: £[x]

I/We expect to incur the following running costs during the second 6 months of the business:

Rent on Premises: £[x]
Rates on Premises: £[x]
Gas/Electricity Usage: £[x]
Telephone Charges: £[x]
Wages (for others, not yourself): £[x]
Advertising and Promotion: £[x]
Fuel costs & Vehicle Road Tax: £[x]
Despatch Costs: £[x]
Professional Fees: £[x]
Other Items (including stationery) [list other items]: £[x]
Total: £[x]

I understand that Bank of Scotland does not apply any bank transaction charges during the first year of my/our new business.


Capital costs
I/We will need to finance the following items of capital equipment during the first year of the business:

Machinery: £[x]
Equipment: £[x]
Office Equipment (excluding Computer Systems): £[x]
Office Furnishings: £[x]
Computer Equipment: £[x]
Cars [list quantity]: £[x]
Commercial Vehicles [list quantity]: £[x]
Others [list others]: £[x]
Total: £[x]


Finance payments
I/We estimate that the total cost of finance payments in the first 6 months of the business will be £[x], and £[x] in the second 6 months of the business.


Costs for materials
I/We will need to purchase the following types and quantities of materials:

[list types and quantities of materials needed for manufacturing or resale.]

I/We estimate that these materials will cost approximately [x]% of the price at which we expect to be able to sell the finished products.


Business protection costs
I/We will ensure that appropriate insurance protection is arranged for the business, and estimate that the total cost of insurance premiums for the first 6 months of the business will be £[x], and in the second 6 months, £[x].



Projected cash flows

I/We have prepared cash flow projections, which are attached to this document.