How to write a Business Plan
Writing a business plan is a crucial step in the process of starting or growing a business. It serves as a roadmap for your business, helping you define your goals, strategies, and potential challenges. Not only is it an important and strategic tool to help the business owner focus on the specific steps necessary to succeed, but it also helps to plan out short-term and long-term objectives.
So, what is a business plan?
Business plans are a document, typically between 15-20 pages, that outlines business objectives and information about your product, strategies, and finances. After starting up a new business, this documentation should be continually updated as your business grows. If you are ever in a position where you feel stuck or unsure of where to go next, referring back to your plan can help with guidance.
Why is a business plan important?
The main significance of a business plan is to help make better decisions for your business in the long run. Taking the time to consider major components of your business before you get started, such as a marketing strategy or long-term goal, can help to guide you. It is also an important factor for investors when determining if your business is on the right path and worth supporting with their time & money.
What are the main things to include?
To summarise, a business plan should cover:
· Your business and objectives
· Your skills and experience
· Your target customers
· Your market and competition
· Your marketing and sales plan
· Your operational plans
· Back-up plan
· Supporting evidence (if applicable)
Business and objectives – This briefly describes your business and short, medium, and long-term goals.
Skills and experience – In this section, you should outline and relevant experience/employment, education or training, transferable skills, and any gaps in your skills, experience, or qualifications, along with how you will address these.
Target customers – The demographic of who your targeting, understanding the customer and their needs, what problem does your service/product solve and the approach to pricing.
Market and competition – Is there any research you have conducted to understand your market? Include you closest competitors, their strengths and weaknesses and most importantly, what sets your business apart from your competitors!
Sales and marketing plan – How do you plan on promoting your business?
Operational plans – Provide the details of key suppliers or key relationships that are or will be important to running your business. Other things to include are current staff employment, staff you intend to take on in the next few months, laws or regulations to consider in your industry, and insurance you have or intend to put in place.
Back-up plan – If any thing were to happen to your business, what would you do? For example, repaying a loan.
Need help getting started? You can download a business plan template here!