EXAMPLE BUSINESS PLAN
Business Plan and Request for Bank Loan
for Bennett Cleaning Services Limited
CONTENTS
Executive summary
1
2
3
4
Business summary
Marketing plan summary
Branding
Terms and conditions
Business plan
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Business details
Business objectives
Key personnel
The marketing plan
Sales
Distribution
Suppliers
Resources
Information technology (IT)
Premises
Staffing
Legal requirements
Financial information (profit and loss/break even)
Financial requirements
Personal asset statement
Personal survival budget
Start up costs
Running costs
Sales plan
Cashflow forecast
Appendix: Summary profit and loss
Bennett Cleaning Services Ltd
27 Bridge Street
Anytown AN3 4LT
Tel 07400 107601 (mobile)
EXAMPLE BUSINESS PLAN © GWE Ltd 2009 on behalf of the South East Business Link Consortium.
Business summary
I plan to start my own business supplying cleaning services to the local
market area. My primary target customers are domestic households, landlords
and commercial properties. The business will offer carpet, upholstery and
curtain cleaning facilities to our customers. I plan to purchase the necessary
cleaning equipment via a bank loan and support the business in the early
period with my own savings. My husband will continue to remain in full-time
employment, ensuring a regular income is received by the family while the
business starts up, but I would hope that he will join the business once we
have reached the required size. During the first year, I plan to operate the
business from my home.
I am currently completing a training course to learn about the cleaning
materials and handling the equipment and hope to start trading as soon
as the course is completed in six weeks’ time. I have fully considered all
of the business issues and feel confident about managing a successful
business. I have also fully understood the consequences of this decision
on my family and the short-term financial sacrifices we will have to make
to start this new venture.
I plan to sell my car (my husband has his own car) and use the proceeds
to purchase a van for use in the business. I will need to purchase the
manufacturer’s specified cleaning equipment and cleaning fluids, and
certain office equipments, the costs of which I have set out in Section 17.
To complete the purchase of the necessary equipment and provide an
amount of working capital for the business, I would like to apply for a bank
loan of £10,000. I would plan to repay this loan over five years, and I include
a cashflow and profit forecast showing that the business is capable of
meeting the loan repayment obligations. My husband and I have savings
of £10,000 but hope to keep these funds for unexpected contingencies to
support the business. I hope to raise further funds from the sale of my own
personal car, as I plan to use the new company van as my main means of
transport in the early days of the business.
You will see from the plan that the start-up costs are shown to be £14,125.
I propose to finance the vehicle cost (£4,000) by a leasing arrangement.
The balance of the funds will come from the bank loan and my own
personal resources, i.e. £125.
I hope that you will support our loan application.
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
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Marketing plan summary
Overview
There are a number of similar cleaning companies in the region but I believe my
commitment to excellent service and the quality of the cleaning products used
by our firm (all of which are environmentally friendly) will give us a competitive
edge over our competitors. I have included a summary of those competitors
and their prices in the marketing plan.
I have a good understanding of the market price for the service offered and
believe I will be competitive and still achieve good profit margins. I expect to
earn £150 per client and can comfortably manage between six and eight clients
per week before having to recruit someone to work with me. The machinery
I plan to acquire is easy to use and has an excellent reputation in the market.
I have spoken with a number of landlords who would be agreeable to using
the firm’s services, and I expect to be busy with domestic clients following the
initial marketing undertaken, with some local advertising in parish magazines,
leaflet drops and supermarket advertising boards. In my advertising, I will refer
potential customers to my website for further information. I would expect the
landlord market to be approximately 30% of my total sales in any year. I would
be able to offer some free promotional services to attract new business if that
is necessary, but expect to be busy straight away. I have already contacted
a number of potential clients who are ready to use the service.
I have contacted a number of estate agents who handle buy-to-let properties
and made them aware of my services. They have indicated that they would be
pleased to add a local supplier to their list of approved contractors; currently,
they appear to be dissatisfied with the contractors that are available to them.
The estate agents have indicated that there is also a need for such cleaning
services among their own customers, who require cleaning services prior to
moving into their recently purchased homes.
I currently have my own car and plan to sell this, as it is not suitable for the
business. I then plan to buy a company van (via a lease contract) for use
in the business.
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
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Branding
The brand identity of Bennett Cleaning Services Ltd is as follows.
Its service is:
• high quality (therefore maximising time between re-cleaning)
• fast (using the latest, quick-drying fluids, and cleaning curtains in situ)
• a ‘one-stop shop’ (for carpets, curtains and upholstery).
Its brand personality is:
• smart and professional
• reliable, quick and convenient
• responsive to customer needs
• responsible, caring and environmentally conscious.
Its relationship to the customer is:
• it listens to their needs
• as an adviser, it offers the best solution.
The value offer:
• Service benefits: reduced lifetime cost of cleaning items; minimises
on-site time/disruption
• Emotional appeal: minimises the impact on the environment.
Terms and conditions (Ts & Cs)
As a small business, my trading terms and conditions will be key to my success.
I have reviewed the recommended ‘Ts and Cs’ of the Carpet Cleaners Association
and have elected to adopt their contractual terms of contract.
This gives the following advantages:
1 The customer clearly understands the service the company offers
and how payments are to be made.
2 The terms and conditions set out the responsibilities of the parties.
3 Disputes are resolved according to a set process.
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
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Business plan
1 Business details
Name of business owner/s
Jackie Bennett
Name of business
Bennett Cleaning Services Limited
Business address
27 Bridge street
Anytown
Countyshire
Postcode
AN3 4LT
Home address
As above
Telephone
Postcode
07400 107601
Home telephone
Date business commenced
1 May 2008
Legal status
Limited company
Principal activities
Domestic and commercial carpet,
upholstery and curtain cleaning
2 Business objectives
• To at least match previous salary by the end of Year 1
• To create enough work for Sam to be able to join the business by the end of Year 2
• To be able to pay for the deposit on Nick’s first house by 2012
• To be able to put aside enough to buy a holiday cottage in Devon by 2015
• To be able to sell the company by 2018 and retire on the proceeds
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
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3 Key personnel
DETAILS OF OWNER(S) (Please attach CV if applicable)
Name/s
Jackie Bennett
Date of birth
14 August 1970
Position/main responsibilities
Managing Director
Responsible for all aspects of running the company
Academic/professional qualifications
7 GCSEs, 2 A Levels, HNC in Business Studies
Experience and knowledge of your industry
Background reading; discussion with friend
running similar business; internet research; research into similar businesses in local area
PREVIOUS EMPLOYMENT OF OWNER
Employer
Position
Date
1
Abacus Office Supplies Limited
Administration Manager
1998 to date
2
Anytown Council
Administrative Assistant
1994–1998
3
Anytown Council
Clerical Officer
1990–1994
Most recent salary/drawings (per year)
£ 18,360
Business experience and any training undertaken
Organising and filing paperwork for three managers; diary management; receiving
and dealing with phone calls; setting up and maintaining customer database;
telesales and direct marketing; dealing with customer orders, enquiries and complaints;
credit control.
Training in database management, telesales, marketing and customer care.
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
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4 The marketing plan
OUR CUSTOMERS
Our business is/will be selling to
1 Private householders
2 People with buy-to-let properties
3 Estate agents dealing with rental property.
Number of customers we expect to win in each group and what they will spend
The plan builds towards a business turnover of approximately £50,000 by Year 3.
A typical breakdown of the expected sales by customer category could be:
1 Private householders: 200 per year, spending approximately £120 each on average
2 People with buy-to-let properties: 50 per year, spending an average of £175 each
3 Estate agents: 30 per year, spending an average of £225 each.
Trends in our chosen market
1 More one-adult households, and households with two adults working; longer working
hours; higher average household income; more use of services such as cleaning.
2 Growth in buy-to-let property as an investment. Tax advantages encourage buy-to-let
rather than buying a second home for personal use only.
3 Estate agents handle growing numbers of rental properties on behalf of their landlords.
How we know this
• Government data on household trends and consumer habits
• ‘Mystery shopper’ exercise, calling all the other cleaning companies in the area,
requesting information and prices for carpet, upholstery and carpet cleaning
• Telephone questionnaire to 50 householders, 25 private landlords
and 25 estate agents, to find out their cleaning needs
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4 The marketing plan/continued
OUR PRODUCT OR SERVICE
(or product/service group)
Carpet cleaning
Proportion
of sales
70%
What are their features or benefits?
Features
• Modern machines
• High standard
of cleaning
• Eco-friendly
cleaning fluids
• Dry within
40 minutes
Upholstery cleaning
20%
• Modern machines
• High standard
of cleaning
• Eco-friendly
cleaning fluids
• Dry within
40 minutes
Curtain cleaning
10%
• Curtains cleaned
in place – no
need to take
down
Benefits
• Energy efficiency
keeps down costs
• Cleaning needed
less often –
saves cost
• Minimum
environmental
impact
• Minimum
disruption to
household
• Energy efficiency
keeps down costs
• Cleaning needed
less often –
saves cost
• Minimum
environmental
impact
• Minimum
disruption to
household
• Saves work
beforehand
• Minimum
disruption
during cleaning
How we will prove the benefits of our products or service to our customers
• Give discounts to existing customers if they recommend a friend or allow people
to visit them to see the results
• Offer a free demo to private landlords and estate agents
• Offer ‘money back guarantee’ if not satisfied with results
• Collect feedback form from customers after each cleaning job
• Ask permission to use customer comments as testimonials
The disadvantages or weaknesses of our products or service and our solution/s
It often sounds expensive beforehand, and it is hard to prove it is worth the cost.
The solution is to encourage personal recommendations and offer demonstrations
so that people can see the value of having cleaning work done by us.
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
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4 The marketing plan/continued
Our major COMPETITORS
Connaught
Carpet Cleaning
How they compare to
us and to each other
• Most upmarket
in area
Their strengths and weaknesses
• Well known
• Good
reputation
• Can charge
high prices
Bradley’s
Cleaning
• Cheap and
cheerful
• Budget cleaning
Rowlands
Cleaning
Services
• Too expensive
for some
people
• Only cleans
carpets
• Family firm
• Old machines
• Lowest prices
in area
• Lower quality
cleaning
• Cleans mostly
shops and
offices
• Low cost
operator
• Mid-priced
• ‘One-stop
shop’ for all
household
cleaning
• All types of
cleaning
Weaknesses
Strengths
• Not a carpet
specialist
• Not well known
in area
• Friendly
service
How our business idea is better than or different from our competitors’
Our new, high-tech machines are the quickest and most efficient on the market. Only
Connaught has similar machines, and theirs are a previous model and less efficient.
Greater water/energy efficiency, meaning lower costs for customers.
Less disruption: the new machines allow drying in 40 minutes. Connaught’s machines
are the next fastest at about one hour, and all the others take much longer. Curtains
can also be cleaned where they hang, saving time and energy for the customer.
As yet, there are no other companies that use only eco-friendly cleaning fluids.
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
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4 The marketing plan/continued
Market research results and evidence
Online report showing growth in use of services such as carpet cleaning.
Organised friends and family to phone competitors, order brochures, ask for quotes etc.
Created file of information about each competitor.
Conducted telephone questionnaire to find out how much carpet, upholstery and
curtain cleaning they needed, how often, and how much they expected to pay for each.
Our image/brand
We will attempt to create a brand that is built around the following standards:
• smart and professional
• quick and convenient
• responsive to customer needs
• responsible, sustainable, caring.
A consistently high standard of cleaning will be achieved and maintained by introducing
standard work procedures, customer feedback surveys and ongoing training.
Bennett Cleaning Services will not compete with the competition on price. Instead,
it will:
• compete with Connaught by emphasising the full range of cleaning services and
low environmental impact
• compete with Rowlands (mainly households) and Bradley’s (mainly shops and
offices) on lower lifetime cost, speed and low environmental impact:
New equipment/consumables
(fast, environmentally friendly)
High price
x Bennett’s
x Connaught
x Connaught
x Bennett’s
Lowquality
clean
x Rowlands
Highquality
clean
Specialist
x Rowlands
x Bradley’s
x Bradley’s
Low price
Onestop
shop
Old equipment/consumables
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4 The marketing plan/continued
PRICING
How we calculate our prices
We take into account:
• what our service is worth to each type of customer (based on market research,
and taking into account the ways in which we are different from our competition
and better than them in the customer’s eyes)
• what it costs us to supply each type of service to each type of customer
• whether the price gives us a worthwhile profit.
Note: Some services are less profitable than others, but are kept because they form
part of the total service.
How our prices compare with the competition
Product/service
Our price
Competitor
price
1 Average household carpet cleaning
£
145
£
80-200
2 Average household upholstery cleaning
£
100
£
80-120
3 Average household curtain cleaning
£
75
£
70-100
4 Average private rental property cleaning
£
175
£
150-300
5 Average estate agent property cleaning
£
225
£
150-300
Reasons for the differences between our prices and our competitors’ prices
Our carpet cleaning prices are lower than Connaught’s, as they have an established
reputation, although we plan to increase prices once Bennett’s is better known.
Our prices are higher than those of either Bradley’s or Rowlands, as our machines
are more modern, our cleaning higher quality, our materials more eco-friendly and
our working methods less disruptive.
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
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4 The marketing plan/continued
MARKETING OBJECTIVES – sales by value (£s) or volume (00s)
Customer type: Domestic households (Sales by value)
Product group
Year 1
Year 2
Year 3
Year 4
Year 5
Carpet cleaning
£8,890
£18,850
£23,563
£29,453
£36,816
Upholstery cleaning
£2,000
£4,000
£5,000
£6,250
£7,812
£750
£1,500
£1,875
£2,343
£2,930
£11,640
£24,350
£30,438
£38,046
£47,558
Curtain cleaning
Total
Customer type: Private landlords and Estate Agents (Sales by value)
Upholstery cleaning
£4,725
£8,750
£10,938
£13,672
£17,090
Curtain cleaning
£3,600
£6,750
£8,438
£10,548
£13,184
Total
£8,325
£15,500
£19,376
£24,220
£30,274
£19,965
£39,850
£49,814
£62,266
£77,832
TOTAL OF ALL SALES
MARKETING STRATEGY
Broadly, how we plan to achieve our objectives over the next five years:
Year 1
• Lease/buy equipment and van
• Undertake training in cleaning and business
• Design and print stationery
• Create marketing materials
• Publicise services via (limited) advertising, press releases, leaflet drops and personal
selling
• Encourage recommendations and referrals by offering incentives
• Concentrate most attention on building domestic carpet cleaning and private rental
property cleaning work
Continued…
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
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4 The marketing plan/continued
MARKETING STRATEGY continued:
Year 2
• Offer private landlords and estate agents free demos and discounts for block booking
• Continue to promote services to private householders
• Reminder mailings to existing customers at suitable intervals to encourage repeat
cleaning
• Undertake training in leather upholstery and hard floor cleaning
• Buy extra equipment for leather upholstery and hard floor cleaning
• Promote hard floor cleaning to existing customers, with incentive for first booking
• Sam to go part-time at work, and start training and building extra business
Year 3
• Sam to join business
• Lease/buy second set of equipment and van
• Continue to promote services to private householders, private landlords
and estate agents
• Raise finance to fund acquisition
• Buy domestic cleaning company and promote both companies’ services
Year 4
• Lease/buy two more sets of equipment and two vans
• Take on two extra cleaners and continue to expand business
• Explore viability of franchising services
Year 5
• Set up and build franchises in adjoining areas
• Continue to expand on existing business
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
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4 The marketing plan/continued
TACTICAL MARKETING PLAN (Detailed plan for Year 1 of the strategy)
Action
Marketing
Design and print magnetic signs
for van
Research and buy CRM software
Book Yellow Pages advert
Compile list of local newspapers etc
for press releases
Set up database of suitable
domestic properties
Create list of private landlords
and add to database
Create list of local estate agents
and add to database
Design and print stationery,
marketing materials and
customer feedback forms
Take overalls for company
logo embroidery
Write and send launch press
release, distribute leaflets
to prospect households
Visit private landlords and
local estate agents
Launch Bennett Cleaning
Services Limited
Run ‘recommend a friend’
promotion for domestic households
Repeat leaflet drop to original
and new domestic prospects
More visits to landlords and
estate agents
Send out customer Christmas cards
with time-limited discount voucher
for first quarter of 2009
Operations
Sell Jackie’s car
Find and buy second-hand van
Buy new computer and secondhand office furniture
Order cleaning machine
Find an accountant and set up
financial record-keeping
Order cleaning fluids, dustsheets
and overalls
By when
By whom
Expected result
Cost
End Jan
£125
End Jan
£1,200
End Jan
£225
End Jan
End Feb
End Feb
End Feb
End Feb
£250
End Mar
£90
Mid Apr
£100
Mid Apr
Early May
May-Sept
£200
June/July
£100
June/July
Early Dec
£200
End Jan
(£4,000)
End Jan
£4,000
End Jan
£1,800
End Feb
£4,000
End Feb
End Mar
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
£1,000
14
5 Sales
TOTAL SALES OVER EACH OF THE NEXT FIVE YEARS
Total expected sales
Year 1
£
19,965
Year 2
£
39,850
Year 3
£
49,814
Year 4
£
62,266
Year 5
£
77,832
Notes
SALES DURING THE FIRST YEAR
Month 1
£
415
Month 5
£
1,655
Month 9
£
2,055
Month 2
£
880
Month 6
£
1,775
Month 10 £
2,055
Month 3
£
1,295
Month 7
£
1,950
Month 11 £
2,175
Month 4
£
1,480
Month 8
£
1,950
Month 12 £
2,280
£
19,965
TOTAL
6 Distribution
Product/item to transport
Collection of supplies
from manufacturer
Storage of cleaning
chemicals
How often
Special requirements
Monthly
None envisaged, as I will
use my business van for
collections
My husband has fitted out
a section of our garage for
secure storage of the small
inventory of chemicals we
will need to hold. The
products are environmentally
safe and no special steps
have to be taken for their
storage or use.
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
Cost
All costs
allowed
for in
business
plan
15
7 Suppliers
OUR KEY SUPPLIERS AND THEIR CREDIT TERMS
Supplier
What we’ll buy from them
Days’ credit
Ashby’s
Cleaning fluids
0
Clarks’ Industrial Clothing
Dustsheets and overalls
0
City Stationers
Stationery and leaflets
7
Signwrite
Van signs
14
Computer Supplies
PC consumables
14
Alternative suppliers
Chemiclean for fluids; Fabrikit for dustsheets and overalls;
various options for other supplies
✓ We have checked out other suppliers ■
✓ They meet our marketing requirements
Tick: ■
8 Resources
Things we need to buy or lease
Resource
When
How funded
Cost
Office furniture
Jan 2008
From bank loan
£ 800
Initial stock and materials
Jan 2008
From bank loan
£ 1,000
Van
Jan 2008
Leased
£ 4,000
Yellow Pages advert
Jan 2008
From working capital
£ 1,500
Stationery/leaflets
Mar 2008
From working capital
£ 200
Cleaning machine
Apr 2008
From bank loan
£ 4,000
Cleaning consumables,
overalls and dustsheets
Apr 2008
From bank loan
£ 1,000
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9 Information technology (IT)
Hardware, software, training
Support
Cost
PC
Free in first year
£ 1,000
CRM software
Online, free
£ 1,200
CRM training
£ 200
Bookkeeping course
£ 125
10 Premises
Details and costs of premises, including future needs
I do not plan any new premises until at least Year 3. For the first two years, I will
operate from home. I have garage space for the van and storage of cleaning fluids
(in small quantities) and I plan to use the spare bedroom as an office for admin work.
I may be able to charge the business a small cost for use of home premises against
my taxable profits (I will ask my accountant about this).
I have confirmed with my local authority that the business use of my home is allowable.
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
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11 Staffing
Role
Total cost
(Salary, NIC, etc)
In Year 1, I will be the
only employee. I may
occasionally use casual
and contract staff to
manage any excess
demand.
I expect to employ my
son in the future but
until sales are sufficiently
robust I do not expect to
take on any full-time staff.
£0
What experience
do they need
to have?
Reliable,
trustworthy
and capable
of working
quickly.
What specialist skills
and/or qualifications
do they need to have?
Training will be provided.
I will not allow any
‘casual’ staff to
operate equipment,
so as not to infringe
any health and
safety issues.
£15,000
12 Legal requirements
Policies, licences, insurance, trade marks, copyrights and other protection
• Public liability insurance
• Van insurance
The costs of these policies are included in the plan.
Health and safety requirements
Comply with requirements of COSHH.
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
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13 Financial information
Our total start up costs (see Section 17) £ 14,125 Our contribution to these costs £
125
FINANCIAL PROJECTIONS (Your financial projections should be calculated on an annual basis)
Calculate your annual gross profit
Projected sales
£
19,965
Total direct costs
£
5,040
Gross profit
£
14,925
Less direct costs
Purchases
£
5,040
Labour costs
£
0
Calculate your gross profit margin (Gross profit £/sales) x 100 = %
74.76%
Calculate your annual projected overheads
Premises (use of home may be allowed)
£
0
Fuel and vehicle running costs
£
1,200
Heat, light and power
£
220
Telephone
£
480
Printing and stationery
£
240
Advertising and promotion
£
1,200
Bank charges (first year free)
£
0
Professional fees
£
240
Insurances
£
1,200
Sundry expenses
£
700
Depreciation
£
1,200
Bank/HP/interest
£
720
Vehicle leasing
£
2,800
£
10,200
£
6,321
£
4,725
Total overheads
Calculate the annual turnover required to break even
£
13,644
£
1,137
Projected annual sales
£
19,965
Less break-even sales
£
13,644
(Overheads £/Gross profit margin %) =
Calculate the monthly turnover to break even
(Break-even sales £/12 months) =
Calculate your estimated profit
x % (Gross profit margin) = PROFIT
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14 Financial requirements
Total borrowing requirements
£
10,000
Amount relating to capital expenditure
(office furniture, cleaning machine, PC and software, plus training)
£
7,200
Value of business assets
£
7,200
Value of personal assets (from personal asset statement, overleaf)
£
228,500
Total value of assets
£
235,700
Net profit generated by business
£
4,725
Other sources (sales of assets, cash injections)
£
0
What assets are available as security?
Source of repayment
Key risk areas
If the business fails completely, the company could sell any assets, which I believe
could fetch £5,000-6,000. This would leave debts to clear of approximately £4,000
(mainly bank loan) but the risk is considered very low. We do have our savings of
£10,000 (referred to in the Personal Asset Statement) so do not think we are not
over-extending ourselves, and we believe the business to be a viable and exciting
opportunity.
Contingency for key risk areas
Will be able to raise finance from own personal assets.
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15 Personal asset statement
ASSETS
Property
Value of house
£
290,000
Value of other property
£
0
Surrender value of insurance policies
£
0
Cash deposits in banks or building societies
£
10,000
Stocks and shares
£
0
Savings/insurance
Other assets
8,500
Value of car(s)
Other reliable assets (things you can sell to raise money — specify)
£
0
TOTAL assets
£
308,500
£
228,500
LIABILITIES
Outstanding mortgage
£
80,000
Regular payments
£
0
Other outstanding loans (specify)
£
0
TOTAL liabilities
£
80,000
ESTIMATED NET ASSETS
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16 Personal survival budget (calculated on a MONTHLY basis)
Estimated expenditure
Mortgage and/or rent
£
325
Council tax
£
100
Water rates
£
25
Utilities (gas, electricity, fuel etc)
£
125
Personal and property insurance
£
100
General housekeeping expenses
£
150
Telephone
£
25
Car tax and insurance
£
45
Car running expenses (fuel, repairs/maintenance)
£
50
HP repayments
£
–
Hire charges (TV, video, etc)
£
25
Subscriptions to journals, professional bodies etc.
£
–
Savings plans
£
–
Contingencies
£
25
Tax
£
National Insurance
£
Other (specify)
£
Other (specify)
£
Total expenditure
£
995
£
805
Estimated income
Income from family, partner (total)
£
Other income (please state source)
£
Total income
£
TOTAL SURVIVAL INCOME
1,800
1,800
If your estimated income is more than your estimated expenditure, you should decide how
much you can invest in the business.
Current income
£
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
22
17 Start up costs
Information technology (IT)
£
2,400
Communications
£
–
Equipment (office furniture, cleaning machine)
£
4,800
Stock (cleaning materials)
£
1,000
Tools
£
–
Vehicles
£
4,000
Professional fees
£
–
Insurance
£
–
Rent/rent deposit
£
–
Stationery
£
–
Marketing
£
800
Consumables and supplies
£
1,000
Licenses
£
–
Training
£
125
Association fees
£
–
Wages/recruitment
£
–
Security/health and safety equipment
£
–
Market research costs
£
–
£
£
£
£
£
£
TOTAL START-UP COSTS
£
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
14,125
23
18 Running costs
Goods for resale
£
5,040
Net wages
£
–
PAYE
£
–
Rent and rates
£
–
Heat, light and power
£
220
Telephone
£
480
Postage
£
–
Insurance
£
1,200
Printing and stationery
£
240
Travel/transport
£
1,200
Marketing costs
£
1,200
Internet costs
£
–
Computers/software
£
–
Professional fees
£
240
Sundry expenses
£
700
Bank charges
£
720
Leasing costs
£
2,800
Personal drawings
£
–
Income tax
£
–
Loan repayments
£
2,400
£
£
£
£
TOTAL RUNNING COSTS (for the year)
£
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
16,440
24
Landlords
Estate Agents
2
3
Landlords
Estate Agents
2
3
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
6
5
4
Households
1
£225
£175
£120
Unit price
Month totals:
£225
£175
£120
Unit price
Month totals:
PRODUCT (OR SERVICE)
6
5
4
Households
1
PRODUCT (OR SERVICE)
£
1
3
10
Number
£
–
1
2
Number
1,950
225
525
1,200
Month 7
415
–
175
240
Month 1
£
1
3
10
Number
£
1
1
4
Number
1,950
225
525
1,200
Month 8
880
225
175
480
Month 2
£
2
3
9
Number
£
1
2
6
Number
2,055
450
525
1,080
Month 9
1,295
225
350
720
Month 3
2,055
450
525
1,080
£
2
3
10
1,655
225
350
1,080
Month 5
=
2,175
450
525
1,200
Month 11
Number
£
1
2
9
Number
£
3
3
9
1,775
225
350
1,200
Month 6
£ 19,965
=
12,465
+
7,500
£
£
Month Totals
2,280
675
525
1,080
Month 12
Number
£
1
2
10
Number
YEAR SALES TOTAL
YEAR SALES TOTAL
£
2
3
9
1,480
225
175
1,080
Month 4
Month 10
Number
£
1
1
9
Number
19 Sales plan
25
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
Closing balance – bank
Opening balance – bank
Income less expenditure
Total payments
Loan repayments
Class 2 National Ins.
Drawings
Tax
VAT
Other payments
Capital expenditure
Interest
HP charges/leasing
Bank charges
Advertising
Professional fees
Telephone
Transport
Printing/stationery
Sundry expenses
Insurance
Materials
Utilities
Rent/rates
Salaries/wages
EXPENDITURE
Total receipts
Other
Capital/loans introduced
Cash from debtors
Cash sales
INCOME
10,125
7,200
325
800
800
1,000
10,125
10,125
Start up
94
200
631
94
33
60
100
40
20
100
40
20
18
725
250
475
Month 1
200
953
-53
94
41
33
60
20
200
100
60
20
100
40
20
100
900
900
Month 2
200
1,270
10
41
51
33
200
60
20
417
100
60
20
100
40
20
1,280
1,280
Month 3
200
1,270
180
51
231
33
200
60
20
417
100
60
20
100
40
20
1,450
1,450
Month 4
200
1,370
230
231
461
33
200
60
20
417
100
60
20
100
40
20
100
1,600
1,200
400
Month 5
200
1,270
510
461
971
33
200
60
20
417
100
60
20
100
40
20
1,780
1,400
380
Month 6
200
1,372
528
971
1,499
33
200
60
22
417
100
60
20
100
40
20
100
1,900
1,400
500
Month 7
200
1,272
668
1,499
2,167
33
200
60
22
417
100
60
20
100
40
20
1,940
1,400
540
Month 8
200
1,268
792
2,167
2,959
33
200
60
18
417
100
60
20
100
40
20
2,060
2,060
Month 9
200
1,273
827
2,959
3,786
33
200
60
10
430
100
60
20
100
40
20
2,100
2,100
Month 10
200
1,053
1,107
3,786
4,893
33
200
60
10
110
100
60
20
100
40
20
100
2,160
2,160
Month 11
200
1,234
1,046
4,893
5,939
33
200
60
20
381
100
60
20
100
40
20
2,280
2,280
Month 12
2,400
24,361
5,939
2,800
720
7,200
721
220
5,040
1,200
700
240
1,200
480
240
1,200
30,300
18,105
1,820
10,375
TOTAL
20 Cashflow forecast
26
Appendix: Summary profit and loss
PROFIT AND LOSS FORECAST
Bennett Cleaning Services Ltd
Name
INCOME
Sales
Opening stock
£
–
Purchases (+)
£
5,290
£
5,290
£
250
£
5,040
£
–
£
5,040
Subtotal
Closing stock (-)
Subtotal
Direct labour costs (+)
Total direct costs
GROSS PROFIT
£
19,965
£
14,925
£
5,445
EXPENDITURE
Premises
£
–
Fuel and vehicle
£
1,200
Heat, light and power
£
220
Telephone
£
480
Printing and stationery
£
240
Advertising and promotion
£
1,200
Bank charges
£
–
Professional fees
£
240
Insurances
£
1,200
Sundries
£
700
Depreciation
£
1,200
Vehicle leasing
£
2,800
Total expenditure
9,480
Operating profit
Interest charged (-)
£
720
Other income (-)
£
–
720
NET PROFIT
EXAMPLE BUSINESS PLAN © GWE Business West Ltd 2009 on behalf of the South East Business Link Consortium.
£
4,725
27