As a new business owner, you may be wondering how to write a business plan. A business plan is a roadmap for your future– it outlines your goals and strategies, and helps you stay on track.
While there are no right or wrong answers when creating a business plan, there are some tips that can help make the process easier.
In this blog post, we’ll outline the key components of a business plan, and share advice on how to create each section.
What is a business plan?
Quite simply, a business plan is a document detailing the inner workings of your business and what it aims to achieve.
In the plan, you’ll need to think about including a clear roadmap – from your business’ very inception to any long-term development goals and ambitions for the future.
It’s where you set out how your business will spend and earn money, how it will be led and staffed and how it will be financed.
As well as giving you clarity about where you’re trying to go, having a solid business plan also makes a strong case for any potential lenders or investors – which could provide you with the funds you need to get your business off the ground.
How should I write a business plan?
The best place to start with your business plan is a basic summary of your business and its goals. This is where everyone will start reading and learning about your business as a whole before going into the finer details. Spend some time on it and try to crystallise what it is exactly that you’re about.
After describing your business, you need to include analysis of the market, especially competition in your local area and industry, and how you slot in.
The next thing is to explain what services or products your business will provide. This may sound obvious, but you need to tell others why your service will work and how it stands out from competition.
People reading the plan will want to know your business’ inner workings, especially how delivery is run from the top down.
Who you are marketing yourselves to is another big question. Think about key demographics and who your target audience is. By understanding your potential clients, you’ll show you understand market trends and know how to make your business profitable.
Remember, it’s not just who you are selling to, but how you’re selling your product or service that’s important. The right marketing makes a massive difference to your business, and investors know that.
So, if you’re planning on using social media, for example, discuss how you’ll make the most out of it. If you’re considering using Google Ads or magazine placements, include these too.
Finally, discuss your financial plan. Do you need to borrow money from a lender? Are you looking for investors in return for a portion of your business? Knowing how much you need to spend and how much to raise is vital in nurturing your business.
If you don’t know exactly how to start your business plan then the team at Smith Butler is here to help. We can help you realise your financial goals and put them to paper for you to present to others.
Get in touch to discuss your business plan.