It may seem like an unnecessary chore, but the benefits of taking time to construct a well-written business plan are many.
How much detail you go into will ultimately depend on who needs to see it. When seeking investment or funding, you are likely to require a reasonably detailed plan to put forward to potential lending institutions and investors. They will want to see that you have given serious consideration to the costs, expected profits and the sector and environment you are planning to start your business within.
How to write your business plan
There are many online templates that can help you through the maze of business plans and starting a business, but essentially you will need to give thought to sections such as:
· Business summary – explain your company, include your mission statement and outline your product or service. Highlight the problems your new start-up will solve for customers, give specific details regarding expected consumers and businesses your business will benefit.
· Executive summary – Explain the leadership and skills you have in place or the team you will need, give numbers, discuss locations and the financial information to meet your needs, and a high-level growth plan and forecast if you are asking for funding.
· Market analysis – Show research you have carried out to back up the need for your business and how you understand what other companies are doing. Answer trending questions and identify competitor strengths and weaknesses, which will guide your plan.
· Legal structure – Describe the legal structure of your business. Consider whether you will operate as a sole trader, limited company or partnership. An organisational chart with details of key personnel will show you understand the structure required for your business and give you the chance to highlight key skills and unique experiences you and your team bring to your venture.
· Financial projections – these can be difficult, especially for new businesses where you may need expert help. Our services and advice could certainly help in this instance. We can help out with our Business in a Box’ all-in-one solution that takes away many of the headaches you face working out how best to cover all of the above.
A guide for the future
Your business plan can be a valuable guide long after starting your business. It can help you remain focused and stop you from heading off at a tangent before achieving your goals. It can also prevent you from overspending before you get going, help remind you how you will identify your customers wants and needs so you don’t lose customers prematurely.
A well-written business plan could see potential investors interested and open up more business funding offers as well as keeping you on track to achieve your business goals. Interested in getting help? Why not get in touch and see how we could start you on your journey to a successful business plan.