Setting up a company so you can work for yourself? Writing a business plan which will serve as a framework for all your commercial activity is a pre-requisite. Do not be tempted to rush through this all-important stage - in this blog post, we highlight 5 key areas that should feature in any successful business plan.
What is a business plan and why should I have one?
A business plan is a written document that describes your business. It covers objectives, strategies, sales, marketing and financial forecasts. This important document will help you:
- Clarify your business idea
- Spot potential problems
- Set out your goal
- Measure your progress
Having a solid business plan will also help you to secure external investment or a bank loan to help you get started. So, how do you write one and how do you make it successful? Every business plan will differ in certain aspects depending on the type of business being created, but as a minimum every plan will need:
Executive summary:
This should include a description and outline of the customer problem being uniquely solved by the business so the reader understands what you are trying to achieve. Here you will list the main takeaways of each major section of the overall plan. Ensure that you are positive and really sell your idea!
Company overview:
The company overview provides the reader of your business plan with basic background information about your company. Here you will provide the following information:
- Company name
- Companies House registration details
- Business structure
- Location
- Ownership
- Company history
- Mission statement
- Your product/service and target customer demographic(s)
Marketing plan:
This should include the commercial and promotional actions that will be used to implement your business idea, with detailed research reinforcing and informing your decisions. The marketing section should be separated into three parts:
- Market analysis
- Competitor analysis
- Specific marketing actions.
Key management:
Here you will include information on each key individual involved in the business. You want to highlight and provide evidence of the technical abilities and specialisms brought by each person to their position.
Financial plan:
The financial section will serve to demonstrate that the business is viable. You will address your current finances and future financial state by using current variables to predict future income, asset values, income projections and withdrawal plans. This is a very important step if you plan to apply for financing. Essentially, you are demonstrating to the lender/investor how they will recoup their money.
Summary:
The imperative five stages outline above will also help you understand your business more and enable you to focus on specific goals and priorities. While officially notarising these stages is important, don’t forget the small details in a business plan that leave a lasting impression – layout and formatting, table of contents, cover page, business branding and the creation date of the document.
No need to start with a blank page either - there are many free business plan templates available out there. A quick Google search or a look through Microsoft Word templates will point you in the right direction – all you have to do is populate it with all the details someone will need to know about your great business idea.
Final pointers
Even if you’re able to write your business plan quickly, it’s worth spending time refining it. Make sure you’ve clarified your business idea, spotted any potential problems, set out your goals clearly and have a firm way of measuring your progress.
