features
learn about business
finance options
quick enquiry
Tips for Business Planning
The “Business Plan” has taken on almost mythical status for the uninitiated. Anyone starting from scratch can be forgiven for thinking of a business plan as a terribly complicated financial and marketing document that mere mortals couldn’t possibly begin to understand, let alone write for themselves. The good news is that this couldn’t be further from the truth. In fact, the more straightforward and understandable your business plan is, the more likely it is to be both used and to be understood by those who need to be able to follow it most closely – very often the financiers.
So, without further ado, here’s how to write one:
Write from the perspective of the person the plan is aimed at rather than our own. Very often, the target is a potential funder, so be clear about the potential return on investment and timescales for this. Remember that you sums for future profitability will come under particular scrutiny – so prepare for this and do everything you reasonably can to make them accurate.
Include detailed information about the market (based on your market research) and the strengths and weaknesses of your likely competition in your chose market segment. You need to have a good grasp of the market size and the market’s likely growth rates – and to be able to state clearly what will set your business apart from the competition. How will you compete effectively with the existing players in the market?
Clearly describe the exact investment opportunity. Why now? Why this particular product and market? What makes your proposal unique? Don’t be afraid of being concise here. Yes, attention to details is important, but the actual marketing opportunity may be straightforward; the best business ideas sometimes are.
And finally, be sure to include an effective executive summary; many readers don’t really get beyond this, so don’t underestimate its importance.
Once you have a draft you’re happy with, ask a professional friend or acquaintance to cast a professional eye over it. Alternatively, your local Business Link or Enterprise Agency may be able to help.
Once you’re happy with the plan, use it to seek expert business finance advice regarding finance opportunities. All businesses need capital funding and a healthly cash-flow to prosper, particularly in the early stages. Make sure you don’t underestimate either of these requirements.
Good luck.