1. Business Plan Pro  software
Business Plan Pro is the best-selling business plan software available for several reasons. It is easy to use, saves time, and has over 500 sample plans to get you started. It also provides a structure whereby you can complete a plan in a methodical manner, while enabling you to benefit from a helping hand at every step.

Where: Business Plan Pro is available from www.businessplanpro.ie
Cost: RRP is only €110 for the Standard version and €176 for the Premier.

2. Business plan competitions
Numerous business-planning competitions are taking place in Ireland and the UK at any given time. These competitions test a wide range of skills that are often neglected by entrepreneurs. By producing a credible business plan and presenting your case persuasively, you will significantly enhance your ability to secure funding. These competitions are an invaluable resource enabling you to road test your business plan in a safe environment before submitting the plan to potential investors.

The main advantages of submitting a business plan to a competition include:

• Tap into Increased Support for Entrepreneurs in Ireland
• Obtain Critical Independent Analysis of Your Business Plan
• Gain Access to Mentors and Networking Opportunities
• Improve key Transferable Skills, e.g. Presentation Skills
• Enhance Your Understanding of What Investors Want

Where: Use a search engine such as Google to find a list of competitions
Cost: Entry costs are usually negligible, although some competitions limit entry to students or locals.

3. Start-up websites
There are a number of start–up websites that can help you understand what needs to be done and how. These websites normally consist of a mix of articles and relevant products and services from third-party vendors. Most also have specific business-planning sections to help you with your plan. The following two well-known Irish sites can give you some further insights into the building blocks that make up a winning business plan.

Where:  www.startingabusinessinireland.com, www.bplans.ie
Cost: Free

4. Government sites
There are also a number of government websites designed to assist people in starting a business which can also help you in writing a business plan.

• www.basis.ie

This government site provides a large range of free information on starting your business, legal and regulatory requirements, employment laws, available capital grants, factors associated to trading online and an over of franchising

• www.revenue.ie

This site covers all areas of tax relating to your business i.e. how to register for tax, how to be tax compliant, tax for employees etc.

Where: As above
Cost: Free

5. Local advisor
Despite the availability of a range of different online resources, there are occasions when professional advice is highly recommended. While there is undoubtedly a trade off (professional advice usually costs), there are some decisions that should be made only after consultation with professionals, such as choosing the legal structure of the company. While local accountants are a natural starting point, there are also a number of other bodies that can provide information and advice, and can point you in the right direction for more complex concerns.

• Enterprise Ireland www.businesslink.gov.uk

Enterprise Ireland can help you develop and promote your business. You can find information on achieving export sales, investing in research and innovation, competing through productivity, starting up & scaling up and driving regional enterprise.

Where: As above
Cost: Free

6. Funding websites
Entrepreneurs need to consider their financing at the start-up stage and most will look to outside help to assist them in financing the start-up phase. A good understanding of the implications of the various sources of funding is important, not least with respect to the various obligations arising under each. At its most basic, the sources of funding are either debt based or equity based, and each class confers certain obligations on the recipient of the funds. If the business plan is used to secure funding it will need to clearly outline the benefits to the investor, and the terms of investment, as they’ll be seeking to assess their risks, as well as the ability of the firm to generate free cash flows. Outside of the traditional sources of finance, it is also worth exploring the following sites, which explain the merits of grant or VC funding. Obviously the conditions for securing either are fairly strict, so both sites will indicate which issues you should consider, as well as information on the availability of the funding.

• www.ivca.ie

The site allows quick and simple searches of the database of business grants and loans — the most comprehensive database of its kind in the Ireland.

7. Bplans
Bplans.ie contains extensive business planning resources and is also owned by Palo Alto Software, makers of Business Plan Pro. There is an extensive back catalogue of articles, with new additions a regular occurrence. It also contains a number of free sample business plans, some calculators. and links to a range of appropriate resources.

Where: www.bplans.ie
Cost: Free

10. Your local library
Finally, libraries can be excellent resources, helping you access information from a host of disparate sources. They can be particularly useful for researching hard-to-access data relating to markets and potential suppliers.

Summary and conclusion
Writing a winning business plan can take time and effort. However, utilizing the above resources should make the job a lot easier and help you to gain a thorough understanding of the fundamentals that underpin every successful business. Good luck!

While the business-planning process is in itself a very worthwhile pursuit, most business plans are produced for a specific purpose. The plan is used as a means to convey an idea with a view to achieving a specific goal, e.g. securing funding. Hence the plan needs to be tailored with the audience in mind, and good knowledge of their requirements will help shape a winning plan.

For example, the requirements a Venture Capitalist will have in assessing a plan seeking to secure a million-pound investment will differ considerably from those of a local bank manager who needs a plan to support a small-loan application. While the former will be primarily looking for capital growth, the latter will be more concerned with security. Regardless of the specific purpose of the plan, these following business plan lessons will apply.

1. Incredible financial projections

One of the key areas business plan readers will focus on will be ‘the numbers’. Specifically, they will concentrate on the projected Income Statement or Profit & Loss. The fact that numbers are projected does not mean that those figures can be included without due rigour or process. They need to be credible, defensible and consistent. Of course forecasting is not an exact science, and the use of proxies can help the author ensure that the figures included are plausible and consistent with the story being told in the other areas of the business plan. The figures must also show an ability of the company to generate free cash flows so that the business can be run profitably while satisfactorily servicing their debts at the same time.

All costs should be recorded including salaries to owner managers who run the company. It is not credible to generate P&L projections where expenses such as salaries are omitted to demonstrate managerial commitment or to artificially reduce losses, etc. By the same token, no investor will be prepared to fund a business where the projected salary payments are excessive. While dealing with finances is not everyone’s strong point, there has to be someone on the management team who is cognizant with the maths. A business plan will need to include everything from break-even projections to proposed return on investments to cash flow forecasts, and one of the key players will have to converse on these subjects in a convincing manner. They will also need to justify the numbers.

2. Lack of a viable opportunity

A business plan needs to not only describe an opportunity, it must also detail how the opportunity can be exploited profitably and demonstrate the company’s ability to deliver what is required. In recent years there has been a significant increase in plans that are inaccessible to the average reader because they are couched in technical jargon and unfamiliar terms. If the reader of the plan cannot fully grasp who the prospective customer is, how that customer will be targeted, and the prospective benefits from the proposed solution, the reader will not invest. In an increasingly time-pressed world, people crave simplicity. Many business plan recipients will only scrutinize the Executive Summary and the financials, using these as the decision points as to whether to read further or not. Hence it is of paramount importance that both the executive summary and the wider plan describes the opportunity in readily understood terms, such as:

* What is the issue or pain point?
* What is the proposed solution?
* What are the benefits of the solution?
* Why are these benefits compelling?
* Who will benefit the most from these?

Once these are detailed, there will be greater transparency regarding the viability, or otherwise, of the proposed opportunity in terms of the company’s ability to profitably serve the target market.

3. No clear route to market

All opportunities are only prospective ones without evidence that the target market can be accessed profitably. Many entrepreneurs are inherently product focused, concentrating their energies on ‘the idea’ to the exclusion of many other important elements such as how they intend to access their customer base. The growth in popularity of the Internet has certainly helped niche producers find geographically dispersed customers, making many more ideas commercially viable. However, it does not come without its challenges, as creating awareness online is both costly and intensely competitive. The business plan must include a comprehensive and credible analysis of how the company intends to secure access to their target market in a cost-effective manner. The low cost and barriers to entry for websites have resulted in the creation of hundreds of thousands of sites. Ensuring that a site stands out from the crowd is easier said than done. Knowledge of who the customer is and how they buy is very important, but identifying them and accessing them on an individual basis is much more challenging and costly.

4. Overestimation of revenues

Another key element of the plan will relate to the size and value of the opportunity. Does the business plan describe a small local business-to-business opportunity with limited scalability/ return or is it a concept with widespread or even potentially global consumer appeal? While the description of the market opportunity will undoubtedly be couched in positive terms, an obvious danger relates to the innate optimism of entrepreneurs and their tendency to exaggerate every business opportunity. Hence the general interpretation of sales forecasts is that they will be optimistic but not excessively optimistic. Admittedly what constitutes ‘excessive’ is subjective, but the numbers will need to be justified and if it emerges that the figures are mere fantasy, the author will lose all credibility and it will significantly undermine any confidence the potential investor might have in the plan.

It is important to guard against this by use of proxies and conservatism when it comes to sales projections. Placing some rigor around the process of deriving credible revenue figures also serves the entrepreneur well by enhancing their awareness of some of the key drivers for revenue growth in their business. It will also help them to produce a more plausible business plan and will ensure that the author is confidently able to answer questions regarding the market opportunity – questions that will top the list of any prospective investor or bank manager. Statements like “the Market is worth €10 billion and growing and we are focusing on capturing just 1% of it” set off alarm bells in the minds of prospective investors.

A more appropriate method is to calculate the number of customers the business intends to capture and their average revenues. These two inputs are easier to calculate and also to justify in a wider discussion. For example, a restaurant can easily use comparables from other restaurants as reference points to calculate average spend per person. Hence the focus turns to predicting the number of covers likely per week which can then be scaled up to obtain projected monthly revenue figures.

5. Lack of appreciation of the importance of good cash flow management

A critical subtlety of any new business is the ability of the entrepreneur to understand the differences between cash and profits and to accept the fact that insolvency is probably the most significant threat to a business. Many businesses fail, not because they are unprofitable, but because they ultimately become insolvent (i.e., are unable to pay their debts as they fall due).

Good cash flow management is vital when businesses pursue investment opportunities where there are significant cash flows out, in advance of the cash flows coming in. The start-up phase of a business is an obvious time when cash flow is under stress with uncertain income streams sitting alongside a raft of certain and often overdue bills. This tension is exacerbated if there are delays to the income streams, e.g. if a restaurant fails to open on time.

Once up and running a company can bank the income immediately if they are a ‘cash-only’ business; however, if they sell on credit, they receive the cash in the future and hence may need to pay some of their own expenses before that income hits their account. This will put a further strain on the company’s solvency. A well structured business plan needs to reflect reality with likely losses in the first months of trading being expected and with financing provisions, e.g. overdraft limits, being put in place in advance of the predictable cash squeeze. A contingency figure should also be added as it is important to leave breathing space for the unexpected costs and overspends that always occur when least expected.

6. No clear objective

What is the main purpose of the plan? If it is to seek investment in the business, it is important to clearly describe the investment opportunity. As mentioned previously there is a tendency amongst entrepreneurs to focus myopically on ‘the product’ or ‘the idea’. This is where they expend most energy but alas that is only one part of the process. While the plan describes the concept in detail, it must also address the purpose of the plan. If it is to secure investment, one needs to recognize that investing is the investor’s area of expertise and they will be seeking an appropriate risk/ return for their investment. Their primary interest will quickly shift from the product once they ‘get it’ and ‘like it’ to assessing the ability of the company (including management) to generate free cash flows to enable the business to grow while also returning cash to them. They will also seek to understand:

* Why they would be better off investing in this business rather than leaving money in other asset classes?
* When will they recoup their initial investment?
* What is their expected return on investment?
* Is the investment merely cash or do they need to bring additional things to the table?

Once the primary objective of the plan is clear, the author will be able to ensure that the key requirements of the reader are met.

7. No evidence of real demand

Another main area of interest when planning (linked to Point 4) is justifying the sales forecast or demand levels for the product or service. There are two main elements to forecasting – the use of facts and the use of subjective assessment/ judgment. However, no matter how unique a concept is, if the market is defined widely enough, it is likely that figures from alternative offerings (facts) can be used to help assess likely demand levels (judgment). The aim of sales forecasting is to come up with some revenue figures that can be considered to be credible in the wider context. While earlier we countenanced against excessively optimistic estimates, here we are delving deeper to ensure there is, in fact, real demand for the offering. Prospective investors will not want to invest at the very start where the risk is highest. Is there poof of concept in the guise of sales or firm orders? Have some sales occurred already? If not, why not?

Unless there is verifiable demand for the idea, the risks grow out of all proportion, particularly if the initial start-up or investment costs are high. Is it possible to test the idea in real time, either by identifying comparables in other geographic areas or analyzing Google search logs or selling via eBay? Again the business plan has to convincingly address the issue of demand rather than concentrate in isolation on ‘the idea’. For some investors, firm orders or evidence of sales will be the level of proof required and allusions to proxies or comparables will not be sufficient. Conversely if there are already strong sales volumes of the product and the company is facing financing or resource constraints which have forced them to seek investment, then the power shifts from the investor to the plan author.

8. Business plan inconsistencies

A business plan needs to be consistent throughout as all the various strands are brought together into one single entity – the plan. If there are multiple authors of the plan the risks increase that certain inconsistencies will emerge. Similarly any presenters of the plan must be fully cognizant of all facts and stay ‘on script’ so as to ensure that a cohesive story is being told. The numbers must also be consistent with the broader content so that there are no contradictions between them.

9. Playing down the competition

There is always competition. Yet the number of times the phrase “there are no main competitors” appears in plans is considerable. No matter how unique the proposition, there will also be some other business competing for the same scarce resource, i.e., people’s money. While competitors may not always be obvious in product terms, competitors emerge upon assessment of the key needs the product fulfills. By broadening the definition of the market, substitute products emerge as ultimately all products and services serve to satiate a defined set of needs, be they physical or emotional. If competitors can not be identified then the search has simply not been diligent enough. Finally it is also important to consider the threat of entry. What will the competitive landscape look like in a few years? Are there significant barriers to entry, or is it likely that a successful entry will be followed by better-placed competitors with greater resources, etc. What will emerge as the bases for competition and will the company be well placed to compete on these bases?

10. Rushing the output

The plan needs to be right the first time and the content needs to be accurate, clear and also without spelling or grammatical mistakes. More often than not business plans need to be completed by a certain date and hence the final stages can be rushed. Consequently, in many instances the final output does not do justice to the plan. Attention to detail at the end is vital, so it is important to ensure the following:

* The plan is printed on good quality paper and bound where appropriate.
* Tables and Charts have been edited to ensure they are formatted correctly.
* Content of the plan has been edited down to a digestible size (Addendum can be provided on request).
* Someone removed from the process has independently proofed the plan.
* If a presentation is part of the process, it should reflect the Executive Summary.

Summary and conclusion

In summary, business plans generally have a purpose of communicating a course of action so as to garner support for the plan. Support inevitably means resources with the primary aim of the plan often being to secure financial investment. With this comes a certain obligation on the business plan author to ensure that the plan is prepared in as thorough a manner as is possible. By ensuring the above lessons are adhered to, the chances of the plan objectives being met increase substantially.

1. Write from the audience’s perspective

The starting point for any business plan should be the perspective of the audience. What is the purpose of the plan? Is it to secure funding? Is it to communicate the future plans for the company? The writer should tailor the plan for different audiences, as they will each have very specific requirements. For example, a potential investor will seek clear explanations detailing the proposed return on their investment and time frames for getting their money back.

2. Research the market thoroughly

The recent Dragons’ Den series on BBC 2 reiterated the importance prospective investors place on knowledge of the market and the need for entrepreneurs to thoroughly research their market. The entrepreneur should undertake market research and ensure that the plan includes reference to the market size, its predicted growth path and how they will gain access to this market. A plan for an Internet café will consider the local population, Internet penetration rates, predictions about whether it is likely to grow or decline, etc., concluding with a review of the competitive environment.

3. Understand the competition

An integral component to understanding any business environment is understanding the competition, both its nature and the bases for competition within the industry. Is it a particularly competitive environment, or one that lacks competition? How are the incumbents competing—is there a price leader evident? Finally, including a thorough understanding of the bases on which you intend to compete is vital; can you compete effectively with the existing players?

4. Attention to detail

Make the plan concise, but include enough detail to ensure the reader has sufficient information to make informed decisions. Given that the plan’s writer usually has a significant role to play in the running of the business, the plan should reflect a sense of professionalism, with no spelling mistakes, realistic assumptions, credible projections and accurate content. The writer should also consider the format of the plan, e.g., if a presentation is required, a back-up PowerPoint presentation should be created.

5. Focus on the opportunity

If you are seeking investment in your business, it is important to clearly describe the investment opportunity. Why would the investor be better off investing in your business rather than leaving money in a bank account, shares, or investing in another business? What is the Unique Selling Proposition (USP) for the business? Why will people part with their cash to buy from you?

6. Ensure all key areas are covered in the plan

Undertake research on what a business plan should contain; one good place to find this is at www.bplans.co.uk Include sections on the Company, Product/Service, Market, Competition, Management Team, Marketing, Operations and Financials. The plan should also take on board the readers’ various preferences for viewing data. While many plans are predominantly textual, the plan should include some simple colour charts and spreadsheets.

7. Do the sums

The numbers will be subject to particular scrutiny. Costs should be documented in full and sales predictions should be both conservative and realistic. While costs are more certain and predictable, a crucial factor in the success or failure of the business will be the level of sales. If you are not particularly comfortable with maths, have someone assist you in preparing a simple cash flow and break-even chart. This will help the reader understand how many sales you must make to cover your costs, and also how much financing you must raise to start up successfully. Remember, at the beginning, there are a lot of start-up expenses in a period of uncertain sales volumes. If sales are on credit (including via credit card) it may take up to four weeks for you to receive the cash.

8. Executive Summary

Arguably the most important component of the plan is the Executive Summary. This is a summary of the entire plan and is usually contained at the start of the plan. It also tends to act as a key qualifier for time-pressed investors—if they like it, they will read on, if not they will go no further. It should be completed at the very end of the business planning process and should have a “wow factor” that entices them to read further. In tandem with this, the writer should also prepare a short “elevator pitch,” a five-minute overview of the key benefits of the new product/service.

9. Review process

Once you have completed your plan, have it independently reviewed. Select someone detached from the process who can offer constructive criticism on all aspects of the plan. Your local Business Link or Enterprise Agency should be able to assist with this. This review should prompt further questions that will need to be addressed in a revised draft.

10. Implement the plan

Finally, a plan should always be viewed as a living document and contain specifics regarding dates, deadlines and specific responsibilities. It should be constantly reviewed and updated, as well as being used in regular “plan versus actual” discussions. Business relies heavily on people taking actions and being accountable for them. A winning business plan will help to ensure that the business is fully focused on what is required to achieve the company’s goals.

Having decided to produce a business plan, there are three main ways to write one:

1. Pay someone to write it.

2. Write it yourself using Microsoft® Word and Excel.

3. Write it using a task-specific software product such as Business Plan Pro 11.0 UK Edition.

If you, like many entrepreneurs, are time rich and cash poor, option 1 quickly removes itself from the equation, given the cost of having someone write a plan for you.

You are then faced with the choice between using Business Plan Pro or building everything yourself, from scratch, in Microsoft Word and Excel. Why are we not recommending other business plan software options? Because Business Plan Pro is the best business planning software available – without exception. Palo Alto Software (the maker of Business Plan Pro) has a proud history, has had category leadership for years and has extensive lists of testimonials and independent reviews on the website, all corroborating this view. By all means, consider other software options; however, we are confident that your own analysis will reveal that Business Plan Pro stands head and shoulders above the alternatives.

When it comes to using Word and Excel there are undoubted benefits – not least the fact that they are ‘free’ in the sense that they are bundled on most PCs. The interface is also familiar, given the popularity of their use. However, while these tools are excellent when you know exactly what you need to produce, they offer negligible assistance when it comes to producing specific content, such as that required for a business plan. If the purpose of the business plan were simply to jot down a few notes to keep you on track, they would suffice. However, if you intend to circulate the plan to peers, colleagues or prospective investors, you will need to produce a plan worthy of your name. After all, you are the author!

Here are the reasons why we believe that using Business Plan Pro is the easiest way to write a business plan:

1. Offers significant time saving

Business Plan Pro was designed to help you write a plan as efficiently as possible. It comes with extensive help, lots of examples and expert advice.

2. Provides the structure

Business Plan Pro walks you through a list of specific tasks, step by step, in stark contrast to the blank screen and flashing cursor you face when you create a new document in Microsoft Word.

3. Includes hundreds of examples

Business Plan Pro includes over 500 sample plans so you can browse plenty of examples to help give you ideas.

4. Ensures you do not leave out any sections

Over ten years of history means that we know what sections to include, where they should appear in the document and what you need to put in them.

5. Makes the numbers part easy

We recognise that while compiling the financials is an essential part of any plan, it is a very challenging area. We have simplified this process with the inclusion of easy-to-use financial wizards and automatic calculations, linking together all the financials from Start-up costs to Sales Forecast to Personnel Expenses to Cash Flow to Profit and Loss.

6. Free support available

Alongside the extensive in-product help, we also offer a free support line and a comprehensive help facility on our website.

7. Signposts relevant resources at appropriate points

The software also includes links to relevant local resources where you can read specific advice on any areas with which you need further assistance, including trademarks, company formations, and more.

8. Designed specifically for producing a business plan

Whereas Microsoft Word is a general purpose tool, Business Plan Pro is designed specifically to help you write a business plan with the least amount of hassle.

9. Risk free

The time saving alone will easily justify the small cost you will need to pay for Business Plan Pro. However, you can avail of our 60-day money-back guarantee if you are still unsure as to whether it will benefit you.

10. Increases your chances

Finally, for most people a business plan is written for a specific purpose, such as securing funding. You should give yourself every chance of succeeding by producing the best quality plan that you can.

While this recommendation is clearly from our perspective, the risk is essentially negligible. You can try out the best-selling business planning software and avail of the money-back offer if it is just not for you. Try it today – we are confident you will not be disappointed.

One of the hardest things for people to write in a business plan is the mission statement. Mission statements can tell a lot about your business, so it’s important to take time, look at some mission statement examples, and put effort into writing a good one.

What is a Mission Statement?

You should think of a mission statement as a cross between a slogan and an executive summary. Just as slogans and executive summaries can be used in many ways so too can a mission statement. An effective mission statement should be able to tell your company story and ideals in less than 30 seconds.

How should I write a Mission Statement?

Here are some basic guidelines in writing a mission statement:

• A mission statement should say who your company is, what you do, what you stand for and why you do it.
• An effective mission statement is best developed with input by all the members of an organization.
• The best mission statements tend to be 3-4 sentences long.
• Avoid saying how great you are, what great quality and what great service you provide.
• Examine other company’s mission statements, but make certain your statement is you and not some other company. That is why you should not copy a statement.
• Make sure you actually believe in your mission statement, if you don’t, it’s a lie, and your customers will soon realize it.

For more information on mission statements, see our sample mission statements below or use Business Plan Pro, which helps you write a mission statement as well as containing over 500 example mission statements.

Sample Mission Statements.

“McMahon Furniture helps create pleasant, productive office environments with well-designed furniture in Dublin that incorporates new technology into the classic office mode, in which real people can work happily. We are sensitive to the look and feel of good wood and fine furniture as well as to high-powered personal computing. We always provide the best possible value to our customers who care about quality office environments, and we want every pound spent with us to be well spent. We also create and nurture a healthy, creative, respectful, and fun office and workshop environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the product we produce. We seek fair and responsible profit, enough to keep the company financially healthy for the long term and to fairly compensate owners and investors for their money and risk.”