Whether your company is established or you’re just starting out, everyone can benefit from a business plan. As the name suggests, a business plan outlines multiple aspects of the business, from products and services, to investment, branding and ethos. Business plans are also an opportunity to set goals for the future, as well as detailing how you hope to achieve these goals. Whilst it may seem like a no-brainer, surprisingly, some companies choose not to create a plan. In fact, on average, only three quarters of UK businesses will create one. Considering that research has found that having a business plan creates a 30% greater chance of growth, the choice is obvious.
What is a Business Plan?
A business plan is a written document which outlines the major aspects of the business, the potential goals and the plan to meet those goals. There are many reasons why a company would need a business plan, all of which are important in their own right.
One of the more obvious needs for a business plan is when companies are dealing with external investors or banks. Third parties require a detailed breakdown of the business and its financial history in order to ascertain whether it would be a safe investment opportunity. However, creating a business plan for yourself, is also extremely important. Not only does it set a clear path for the company, it also provides a way in which to measure success. It can be easy for business owners to lose sight of the long-term and a plan can help to create a path to follow.
Now that we know what a business plan is and why it’s important, how do you actually write a good business plan?
Audience
Before writing your business plan, the first question to answer is who are you writing it for? Whether it be a potential investor, business partner or bank manager, the plan should be tailored to specific readers and the information they will need. Of course, as we have established, the plan can also just be for you and the wider company. In this instance, you’re the best person to decide what content should be included.
Executive Summary
The executive summary is just that, a summary of the entire business plan with the key points highlighted. Realistically, some potential investors or partners are likely to only skim the document, however everyone will check the executive summary. Therefore, you need to include all the important information, such as unique selling points, goals and the overall potential of the business. It is best to complete the executive summary after you have finished the rest of the plan as it will be easier to condense all the relevant information.
Company Statement
Another important section within your plan is the company statement. This is where you provide a brief bio on you and your business, its history and the overall mission statement. This is the section where potential investors can connect with you on a human level. Try to be open and passionate, whilst also remaining professional.
Help
There are just some of the aspects of writing a business plan but there are many others to consider. Alongside the executive summary and company statement, you may also require sections on products and services, marketing, finances, analytics, projections and the overall structure of the company.
Creating a business plan can be a complex task, especially for those who are doing it for the first time. Fortunately, there is a lot of help available, including example plans, templates and other online resources. However, if you’re looking for a more comprehensive solution, the experts at Fund Flow provide complete financial assistance, including help with business planning.
