A SIMPLE GUIDE TO WRITING A BUSINESS PLAN

What is a Business Plan? A business plan is a systematic assessment of the organisation and its environment, comprehensively undertaken, leading to a realistic strategy towards a long-term and enhanced future. It is not an end in itself. How does it differ from other Strategic Plans? A business plan is different from other plans in that it has detailed financial forecasts for the organisation as a whole. Some of the elements that are likely to be in any business plan are: Where are we now? A review of the values, assets, activities, staff, expertise, and experience of the organisation. Many groups use SWOT and PEST analyses (see below) to describe their current situation. Where do we want to get to? A description of the overall purpose of the organisation and its objectives for the next 3-5 years. How do we get there? The strategies (finance/fundraising, staffing, IT, marketing) needed to gain the objectives. The resources required staff, skills, training, money. Financial and cashflow projections, detailed in the first year, more of an outline in years 2 and 3, etc. Purpose of a Business Plan A business plan: Facilitates the setting of goals, targets and milestones. Provides the basis for a clear strategy to solve the organisation's problems. Allows opportunities to be identified early and if appropriate capitalised upon. .

Demonstrates commitment and agreement and communicates support and backing from senior management. Permits a thorough understanding of the business and its effective control. Why Have a Business Plan? Review achievements of previous year. Measure growth and development against performance indicators. Identify national/regional, local changes. Demonstrate the value of the organisation. Celebrate success.
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 Illustrate good practice. Indicate resource allocation. Develop standards to meet quality assurance criteria. Set service/corporate priorities for 3-5 years. Identify clear measurable objectives for the next twelve-months. Incorporate consultation with users, stakeholders, staff and volunteers. Suggested Content Introduction Overview of previous year and review of objectives. Finance/budget statements. Organisations mission statement. Equal opportunities policy. PEST analysis (see below) SWOT Analysis (see below) Corporate objectives for 3-5 years Resource allocation (including premises, skills, staff, training IT etc) Financial projections / cashflow statements for 3-5 years Objectives for the year Key tasks Lead officers Timeframe Performance indicators Some Useful Planning Tools Business plans are both a management tool and a way in which you can demonstrate the value of your organisation to stakeholders and funders. If you were a business you would be concerned with your competitive market, product, sales, price, the break-even point, profit and loss etc. For voluntary and community groups who raise the bulk of their income from donations, grants and contracts you are in the business of selling a service (or services) rather than a product or goods. You are still competing in a market and your business plan should take account of the nature of your market, future trends and how the organisation is positioned in the market.
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A useful starting point would be to undertake a PEST analysis by looking at the political, economic, social and technological factors that have a bearing (or might do) on your organisation. You will then be in a position to undertake a SWOT analysis. This is a brainstorming exercise in which you evaluate and list points under the following four headings: your Strengths and Weaknesses, the Opportunities to your organisation and the potential Threats that it may encounter. Sometimes it is useful to list these in a table: Strengths Opportunities Weaknesses Threats -

From the SWOT analysis you will be in a position to outline the directions you wish the organisation to follow, what obstacles it needs to overcome and what opportunities it wants to exploit - and make priorities which then inform your corporate objectives for the next 3-5 years. The rest of the business plan should then deal with how you will achieve these objectives over a realistic timeframe for the period of the business plan. Note that all business plans need to be SMART and APIE: Specific - avoid a vague, all-embracing wish list. Measurable - how can you tell if you've achieved them? Agreed- within the organisation, with stakeholders and funders. Realistic - can they be achieved? Timeframed - by when? and (to reflect that business planning is a process and not an end in itself) Appraised Planned Implemented Evaluated

Further Information For further information on writing a business plan see the various sections on planning and quality management at www.volresources.org.uk. From a community organisation perspective see the National Federation of Community Organisations website: www.communitymatters.org.uk/services/publications_order2.htm where you can order their information sheet at a cost of 1.50. From a business perspective see - www.businesslink.org or www.gatewayenterprise.co.uk.

This guide has been adapted from the excellent resources available on the London Borough of Ealings web-site. Visi www.ealing.gov.uk/services/voluntary+grants/ to find out more.