Today's session is being delivered by the University of Sheffield's Enterprise Unit (USE). Their focus is in supporting the development of business skills amongst students, most of whom engage with USE voluntarily. Here, I want to introduce you to the concept of a Business Plan, which I hope to persuade you is something to be embraced rather than feared! A good Business Plan is critical to pursuing an idea, whether it is "near market" or Blue Skies.
Let's look at definitions first. The noun "business" is associated with the commercialisation of an activity; usually making a living out of the work you do (think successful business). Hence, "s/she is in the newspaper business", or "the music business": selling newspapers or records. I would take a slightly different view on the word, I think it describes the application and integration of an idea or a group of ideas that lead to some form of output that can provide financial support to the individuals associated with the business. It is perhaps not surprising then that everyone wants you to provide a Business Plan, to persuade them to support you either in research, in your sporting life, or in raising funds for a good cause etc. A Business Plan is simply a document that links an idea to a financial outcome that follows a series of milestones. The whole document is structured around a budget, which is divided between investment to cover the costs of premises, salaries, consumables, administration etc., together with some income forecasts. This forecasted balance sheet, which provides an honest assessment of the amount of investment required before the first revenue is earned, and the prospects for the following few years, will often be the key factor in determining the likelihood of attracting investment. The key to writing a successful Business Plan is critical self-assessment. Ask yourself the question: would you invest everything in your bank account in your own Business? If there is any doubt: it isn't a good plan!
The key elements of any business plan that you should consider include (not in any particular order):
Let's look at definitions first. The noun "business" is associated with the commercialisation of an activity; usually making a living out of the work you do (think successful business). Hence, "s/she is in the newspaper business", or "the music business": selling newspapers or records. I would take a slightly different view on the word, I think it describes the application and integration of an idea or a group of ideas that lead to some form of output that can provide financial support to the individuals associated with the business. It is perhaps not surprising then that everyone wants you to provide a Business Plan, to persuade them to support you either in research, in your sporting life, or in raising funds for a good cause etc. A Business Plan is simply a document that links an idea to a financial outcome that follows a series of milestones. The whole document is structured around a budget, which is divided between investment to cover the costs of premises, salaries, consumables, administration etc., together with some income forecasts. This forecasted balance sheet, which provides an honest assessment of the amount of investment required before the first revenue is earned, and the prospects for the following few years, will often be the key factor in determining the likelihood of attracting investment. The key to writing a successful Business Plan is critical self-assessment. Ask yourself the question: would you invest everything in your bank account in your own Business? If there is any doubt: it isn't a good plan!The key elements of any business plan that you should consider include (not in any particular order):
- The Team
- The Idea
- The Infrastructure
- The Market
- The Competition
- The Budget
- The Timetable to Profitability
- Return on Investment
- Future Prospects (Growth or Exit)
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