Developing your first business plan
October 26, 2009 in Planning by Stephen Hewitt
It is essential to have a realistic, sensible and well thought out business plan when thinking about starting up any new business venture.
A business plan is basically a document that once completed, allows you to determine and plan for the future of your business. It can also be used to secure any funding which is required as well as provide you with a forecast on everything from your running costs to projected income.
This guide will show you how to prepare a high-quality plan using a number of easy-to-follow steps.
The audience for your business plan
There are many benefits to creating and developing a realistic business plan. Even if you are to use it just for your own purposes, it will will allow you to:
- Spot any problems before they happen.
- Effectively forecast the financial area of your new business.
- Allow you to focus on any areas that you may need to develop.
- Be used as a blueprint for the success of your business.
Many people use a business plan simply for the purpose of recieving funding from an investor or though a loan from their bank.
The following will request to see your business plan if you are looking for funding.
- Banks.
- External Investors.
- Grant Providers – such as your local enterprise board.
- Potential Partners.
Review, change and implement
You should always look at reviewing you business plan at regular intervals to ensure that you are on track with any targets which you have set out.
When reviewing your business plan, you must quickly point out any problems you are having in achieving your targets and be able to quickly make any adjustments.
Reviewing your business plan will allow to also look at ways in which you can develop your business and how any development on your business will be implemented.
What your plan should include
Depending on the type of business you have, or are about to setup, depends on what will be included in your business plan. However, most business plans should include the following:
An executive summary
This is a vital area of your business plan which should include an overview of your business. Many judgments from investors are made on this section of the plan.
Business Description
This section should include information such as who you are, what you are going to provide and to who.
Marketing and Sales Strategy
How you are going to sell your product or service and why they should decide to use your product or service.
Management and employees
This section should include a comprehensive description of your own credentials as well as the kind of people which you will need to employ and the skills which they will need.
Operations
This will include information on the kind of premises you will be working from, the facilities and machinery you will be using along with any IT solutions which you will need to acquire.
Financial details
This area determines the financial forecast of your business.
Document
The following document is a template that will show you in more detail the information that you will need in your business plan.
