How to write a business plan (part-1)
The first stage for anyone purchasing or starting a new business should always be a business plan. In this short series of articles we will explore the common areas which should always be included in your business plan and other sections which you might choose to include.
There are a great many resources available on the web – we will provide links to the most useful we can find.
Why should your business have a business plan?
A business plan helps you to:
- Clarify your business idea.
- Spot potential problems.
- Set out your goals.
- Measure your progress.
It’s really important that potential investors can understand what your business is all about from a quick glance at your plan. Make sure you include a summary of your business, and how it will make money right from the start, and use simple language throughout.
Being specific is just as important as being concise. The details will help you drill down into how you will actually deliver your plan.
Know your market
A big part of knowing whether your business will be successful is understanding your audience. Make sure your plan is clear about your target market â€“ who will you be selling to and how many other companies are already selling similar products?
Know your finances
The other essential part of a business plan is the finance section. If your business isn’t going to make any money, it won’t be successful so you need to be very clear on how you will make a profit.
Use it to your advantage – your plan will be incredibly useful when it comes to securing loans and investment, but that’s not its only use. It’s also a personal tool to help you understand your objectives.