Almost all successful businesses have a business plan. A business plan is essential for the running of any venture no matter how big or small. It is not just THE basis of your applications for grants and private funding, but it will also act as a much-needed fixed point in the otherwise hectic world of running a business. 
The purpose of the business plan is to:
- Establish the feasibility of the idea
- Document the plan for the business
- Act as a measure for performance and progress
- Communicate your plans for the business to outsiders and investors
There is no requirement on length of the business plan, but it should be factual and clearly written and provide the relevant information required by lending organisations, but once you have written one, it’s important to make sure that you use it to manage your business. If you just put it in a filing cabinet and forget about it then it won’t help you to become successful. Business plans should be continually reviewed to check whether you are accomplishing what you set out to.
A business plan is a broad document and will cover all aspects of your business;
- Quality
- Current Demand for Childcare
- Future Demand for Childcare
- Costs
- Pricing Strategy
- Marketing & Sales
- Staff Management
- Needs Analysis
- Your Services
There is no fixed length for a business plan, but there are some fundamental elements that you should include to ensure you are covering and considering all elements of the business.
The contents of a business plan might include:
Overview of the Business
Including basic information about the organisation, contact details etc.
Aims and Objectives of the Business
It’s essential to describe the services that you provide and any new services that you intend to develop including information about opening hours, the age range of children that you look after, the number of children you are registered for and information about your quality standards and expectations
Management and Reporting Structure
This section should be about the type of company that you are (e.g. sole trader, private limited company, company limited by guarantee, voluntary management committee run group), who is involved in the management of the organisation, what their roles and skills are etc. If you are thinking about changing your legal status, you ought to include information about that. If you have a constitution or governing document and an organisational chart, you may wish to include that.
Operational Information about the Business
Including details about your premises, policies and procedures and processes for administration such as late payment etc.
Needs Analysis and Marketing
This section will include information about your surrounding area and who your customers and competitors are. You could also include any information about links to partner organisations such as schools. Any market research that you have done should be summarised with the main breakdown included in this section. Your marketing strategy plan and ideas should also be included here.
Staff Information
Including details of staff employed or to be employed, their hours, rates of pay, qualifications and specific roles and responsibilities.
Financial Management
Include your annual budget and cash flow forecast in this section as well including notes on the assumptions behind forecasts of income and expenditure and projections that have helped you to reach your figures, such as your likely occupancy levels and staff requirements. You may also want to include information about your break-even point and pricing structure and strategy here.
Quality
Details of any quality awards held and information about your recent Tusla Child and Family Early Years Services inspections should be included along with any plans for improvement and development.
Action Plan
You may wish to include an overall action plan for business development, particularly if you decide that there are lots of changes that you want to make and / or things that you want to develop. It can be useful to carry out a “SWOT” analysis in your early business planning process, as this could help you to identify particular areas for required action and development.
The important thing is to not to forget that once you have written your plan, you need to use it to manage your business. It is something you should revisit on a regular basis. The business plan acts as a guide, so take it out of that filing cabinet to review it at least twice a year. Reviewing the business plan helps you to evaluate whether or not you accomplished the business goals. If you did, it allows you to repeat your successes. If you did to meet your business goals, it allows you to make adjustments so you can meet future goals.
There is no fixed presentation for a business plan. For an example of a possible layout, please look at Step 12 – Business Plan on our Setting up a Childcare Service webpage.