Running a business takes a lot of preparation and legwork before you even open the doors. One of the most important steps in this process is your business plan.
While it may sound straightforward, a lot of detail goes into making an effective business plan. It will serve as the basis of your internal structure, how you wish to develop and how you’ll gain investors.
Here’s what you need to know about putting together your business plan.
What you need to include
Any strong business plan will include your vision for your new (or existing) venture, including values, your development ladder and how much you’ll need to make your goals a reality.
Your document will serve as a point of reference for you throughout your journey but also as a way to pitch your business to raise funds for your progression.
Not only are you selling your business to potential investors, lenders or partners, but you’re also selling yourself. You want to make sure you have all of the necessary figures and forecasts to show that you’re a safe investment and have a keen eye for business.
How to write your plan
Your introduction to your business plan should be your proposal and a basic summary of your business and what you want to achieve. You can save the finer details for further in the plan.
It isn’t just information about your business you should include, but also that of your market competitors. Showing that you’ve done your research and analysis is essential if you want to succeed.
You’ll also need to explain how you’ll stay competitive in the market and why your goods or services will be the best option for potential clients or customers.
Your target demographic will also make up part of your plan, as you’ll need to demonstrate your understanding of audiences and how you’ll successfully market to them.
Once you’ve focused on your operations, you’ll need to turn your attention to the financial side of your business plan.
Cost projections are vital. You need to be able to show how you plan to spend your money. This would include expenses such as:
- staffing costs
As a new business, you will need the capital to get things started, so you’ll also have to explain how you expect to get the funding. Banks and lenders may be able to offer you loans, but remember these will come withinterest.
Investors, on the other hand, will expect a return on their investment. So you’ll need to factor all of this into your business’ spending.
If you’re an existing business, you’ll be able to also create a forecast. This can be done by checking your previous months or years of business. You then use this data to estimate how much you’re likely to bring in over your projection period.
This will all be important for investors and lenders to see as they will want to know how their money is going to be used.
How we can help
For a long time now, the team at Venthams has been helping prospective and current business owners build comprehensive business plans.
Analysing the numbers is our speciality, so we can provide you with the support you need to look at your cashflow projections, budgets and profit and loss statements.
Get in touch with our team for help with your business plan.