Collecting evidence

To be convincing, a business plan must be based on evidence rather than wishful thinking.

It is not hard to collect evidence but it does take time and a systematic approach. Each element of the business plan will require some form of evidence or as a minimum a clear concise explanation of what is proposed or how the objectives of the project are to be met. Particular attention needs to be paid to the market research and estimates of both capital and revenue costs to ensure that they are as robust and comprehensive as possible.

Business plan element	Evidence needed
Summary	Clear and concise account / explanation.
Your Organisation	Annual Report, Accounts, info on legal structure and governing body, information on impact measurement.
Introduction to the Project	Clear and concise account / explanation.
Market	Details of competitors and their charges. Market survey information on need/demand for kinds of uses proposed for the asset. This should be based on a defined catchment (e.g. local/regional/national/online) of relevant customers given the service/facilities being offered (not simply consultation). How prices have been arrived at and calculated.
Promotion	Evidence to support why the methods that have been included have been chosen for the target market.
Resources	How costs have been arrived at - e.g. professional quotes, comparative estimates, actual historical costs, published rates, supplier quotations. Basis for the assumptions that have been made for example about inflation, when income and expenditure have been included.
Risk Assessment	Assessment (rating of impact and likelihood) of relevant risks and proposed ways to address them.

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Be aware that revenue costs and income will be different if you are making a land or building asset available to others (in which case the organisation taking ownership will be collecting rents and recovering service charges) as opposed to using the asset to deliver services itself (in which case the organisation taking ownership will be having to cover these costs itself).

Potential revenue costs and income
Income	Costs
Rents, fees and charges Membership fees Grants/donations VAT Service charges	Staff Salaries (including Employers National Insurance, pensions). Also consultant costs, recruitment and cover for holidays etc where appropriate. Insurance (Land / Buildings / public liability / employers liability / contents / rents and service charges) (including IT/telephone) Professional fees - Audit and legal Repairs and renewals Marketing/Letting (direct costs and sub contractors) Utilities (e.g. gas, electric, water) Security Training Administration/office costs/bookkeeping Rates Loan repayments Cyclical Maintenance (decoration etc) Cleaning VAT Gas electric lift and fire compliance Sinking Fund (reserved fund for future major works / improvements) Promotion/publicity Allowance for bad debts/voids (unlet property)

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Potential capital costs and income
Costs	Income
Land Acquisition and legal fees Site Investigations Building/construction work Professional Fees Furniture Equipment VAT Contingency	Sales Grants Loans Equity

Collecting evidence

Related Resources

Potential Costs / Income

Business Plan: Collecting Evidence