opening a bike shop - the business plan

Don't be put off. Although sounding very grand a business plan is your validation of what you want your new business to be - and therefore it has a vital role in helping you achieve your goal.

Important to the business plan are your objectives and identifying your target market and how you will service their needs with the right product, prices and service.

Also fundamental to your business plan are financial forecasts. This will be the measure of your performance and the basis upon which finance is invested in the new business. Making the most of the money you initially invest in your business is absolutely critical.

A 3 year profit and loss plan will forecast your sales, gross profit, overheads, cash flow and balance sheet - and this will be one of the most important things you produce which mean it needs to be realistic and flexible. Alongside forecasting you must also consider a stocking plan which reflects monthly sales, closing stock value and therefore drives and controls financial purchases.

Many new small businesses make little or no money in the first 3 years, so you should consider the issues this may raise financially. For example, if you are used to a good wage and have bills to pay and mouths to feed can you survive on a lower wage? Many shop owners often do not take a wage in the early years, and put all the cash back into their business.

Financial control and oversight are fundamental to the development and long term future of a successful cycle retail business.