What should I include in my post-COVID business plan?

The emergence out of lockdown will be a critical period for any business as trading volumes increase, furloughed staff return and other government support measures put in place are scaled back. Many businesses will be looking to raise finance, whether debt or equity, in order to ensure that the business has sufficient funding to capitalise on the opportunities available. 

In order to secure the appropriate funding for your business, having a business plan to navigate the post-COVID world will be crucial, demonstrating to funders and investors the business’ strengths and potential. This article explores the key aspects that should be included in such a business plan.

History 

• Provide a summary of how the business came to fruition and performed prior to COVID-19. 
• The stages of development for the product/service, any barriers that have been overcome to date.
• The strategies that the business has put in place to mitigate the impact of COVID-19.
• Mention future plans, linking to investment needs

The Business

• Set out the aim of the business (this could be general or specific). Has this aim been impacted on by COVID? Is it still reasonable and is the strategy to achieve still  viable? 
• How will the business evolve in the post-COVID?
• Provide a profile of the business
• Why do customers buy from the business? 

The Market 

• How does the business sell its product? 
• Define the market & industry and how the market operates, big players, your niche.
• How has the market changed as a result of COVID-19 and what opportunities have presented?
• Use SWOT or Porters 5 Forces to succinctly convey
• Defining any barriers to entry and future plans

Management

• Who are the key figures driving the business? Investors often see as key predictor for success. 
• Background on key individuals and their role in the business and key skills they bring

Financial Summary

• Historical financials pre COVID-19 demonstrating the underlying profitability of the business
• Future forecasts (graphs needed) showing future sales, capacity, and sensitivity analysis on future sales

Investment Summary

• The level of funding/investment needed to achieve the future strategies
• Why invest in the business?
• What are the benefits of investment? – Enterprise Investment Scheme (EIS) /Seed EIS registration?

Bishop Fleming has a team of fundraising specialists ready to advise clients through Coronavirus whether through debt or equity. Our specialist tax team has considerable experience in helping companies to qualify for the EIS/Seed EIS schemes, making businesses an attractive proposition for investors.