How to write a business plan

What is a business plan?

A business plan is a formal written document that outlines the goals of a business, the strategy for achieving those goals, and the timeframe for implementation. It serves as a roadmap for the business and provides detailed information on various aspects of the business, including its structure, products or services, market analysis, marketing and sales strategies, and financial projections.

Do I need a business plan?

While there's no requirement to have a business plan, it can be a useful framework for both new and established businesses. For startups, it helps in securing funding from investors or lenders. For existing businesses, it provides a strategic framework for growth and helps in managing operations and finances effectively. Some banking providers do need to see a business plan before opening a business account too.

What information should I include in a business plan?

• Executive Summary: A brief overview of the business, its mission statement, and the key points of the business plan. It often includes the business name, location, and the product or service it offers.

• Company Description: Detailed information about the business, including its history, structure, objectives, and the market needs it aims to fulfill.

• Market Analysis: An examination of the industry, market size, expected growth, target market, and competitive landscape. This section often includes demographic information and an analysis of competitors.

• Organisation and Management: Information on the business’s organisational structure, ownership, and the management team. It may include details about the roles and responsibilities of the team members.

• Products or Services: A description of the products or services offered by the business, including details on the lifecycle, benefits, and competitive advantages.

• Marketing and Sales Strategy: The plan for marketing and selling the products or services. This can include the marketing strategy, sales tactics, pricing strategy, and how the business plans to attract and retain customers.

• Funding Request: If the business plan is being used to secure funding, this section outlines the funding requirements, potential future funding needs, and the proposed use of the funds.

• Financial Projections: Detailed financial forecasts, including income statements, cash flow statements, and balance sheets. This section also covers assumptions, break-even analysis, and financial ratios.

• Appendix: Any additional information that supports the business plan, such as resumes of key team members, product images, legal documents, and other pertinent details.

Are there any alternatives to writing a formal business plan?

Yes, there are simpler, less formal options than writing a business plan

• Lean Canvas: A one-page business plan template that helps you quickly map out the key elements of your business.

• Business Model Canvas: A strategic management template used for developing new or documenting existing business models.

• Pitch Deck: A brief presentation that outlines your business idea, market opportunity, business model, and financial projections, often used for pitching to investors.