Archive for January, 2009

It’s not all doom and gloom – credit crunch winners

Monday, January 12th, 2009

We could be mistaken for thinking the business world is about to end with headlines like these;  Profit warnings ’seven-year high’,  UK slump ‘is worst for 28 years’ and Profits ‘tumble’ at finance firms.

But although the market conditions are difficult it does rather depend on the industry and niche you are in, there are alway winners and loosers with any extremes of market conditions. Here are some of the winners:

Poundland sales rose 24.3% during Christmas including new store openings and they have plans for “significant” growth in 2009, creating 30 new stores and 1,000 jobs.

Domino’s Pizza UK and Ireland has reported strong growth in profits as cash-strapped consumers choose takeaways instead of eating out. Pre-tax profits rose 32.7% to £10.9m.

McDonald’s is creating 4,000 jobs in the UK after proclaiming itself more “recession resistant” than most retailers.

Aldi and Lidl enjoying annual sales growth of 19% and 14% respectively in June 2008.

So now is still a great time to start a new business, think about this if you can survive while things are difficult then you will fly when things pick up.

Writing a business plan – part 5

Tuesday, January 6th, 2009

Business plan key messages

Your business plan must get across the following key elements to potential investors:

  • Product/Service - You must outline the unique selling points of your product or service. It must be clear how this business will stand out from the crowd.
  • Financials – You must show sales, cost and profit projections for the next 3 years.
  • Management Team – You need to show you and your management team have the experience and skills to operate your business in your chosen market.
  • Return on Investment (ROI) – Clearly lay out for the investor how and when they will get return on their investment.

Remember although your business plan is a sales tool it is not a work of fiction and must be realistic.