Writing a good business plan can is an essential foundation to starting and running a business. A business plan not only sets out how your business will start, operate and become profitable but it will also set out your business strategy.
Business plans help you run your business
A good business plan will provide guidance for each stage of starting and managing a new business. New business owners should you the business plan as a roadmap to structuring their new business but also to guide them through running and growing their new business.
Business plans can help you get funding or bring on new business partners. Investors want to feel confident they’ll see a return on their investment.
If you are looking to acquire financially backing, investors will certainly want to see your business plan. No investor will back a business start-up without seeing a detailed overview of what the business is and the roadmap to how the business will operate and be profitable. Even if you are funding the business yourself, you should have a business plan.
A business plan also essential for convincing people that will be working with you or investing in your company is a good choice.
There’s no right or wrong way to write a business plan. The Most important part of writing a business plan is to ensure it meets your business needs. There are two types of business plans that you can use: Traditional or Lean startup.
Traditional business plans
These plans are most common, which use a standard structure, and encourage you to go into detail in each section. This plan structure requires more work and can be quite long in terms of content.
Lean start-up business plans
These plans use a standard structure and focus on sumarising just the important elements of your plan. This plan could be just one page giving a quick summary of your business plan
When writing a business plan, you should have a clear view of your business idea and what your business goals and objectives are. A good business plan will help you set your goals and set out how you will achieve them.
So what’s in a business plan
A business plan should be kept short and include the following;
- Financial forecast and assumptions
- Market research
- Specifications for your product
- CVs of essential personnel
- History of your business
- Who is owned by
- Ownership structure
- What your product or service will be
- What benefits does it offer
- How are your products different to your competition
- What is your market
- Review your competition
- Your market and sales strategy
- Management & Personnel
- Overview of business operations
- SWOT analysis
A business plan is a good starting place for any business and can be updated as your business goals and objectives change.
How to write a business plan
There are many great tools online to help you write a good plan. You can also find very good examples of business plans that other start-ups have produced. The https://www.gov.uk/write-business-plan is also a great resource for advice on how to write a business plan.
Your plan should provide an a clear indication that you understand the market that your business will operate in and have thought about the products or services that you will offer and how your business will provide these. Your business plan should also include details of staffing required , premises and financial forecasts showing costs and cash flow. The plan should also include details of any financial funding required.
A business plan layout can you organise your plan and make sure it is easier for anyone to read. There are many great templates available for your to use.