A business plan is important for all businesses, not just start-ups. The sole purpose of a business plan is to help articulate a proposed strategy for your business, providing an insight of the relevant steps to be taken and ascertain the resources required to achieve your business goals. All objectives of the business plan should reflect how they will help your business flourish and grow.
Your business plan should include a description of the business, outlining the product or service, the capital requirements along with a forecast and projections of the financial results, at least for a minimum of three years.
Why does a business need a business plan?
- Preparing a business plan will help you to set clear objectives for your business and help to set targets for the future performance and profitability.
- Banks and investors will always look at the risk of default so ensure to have written facts and figures in a properly prepared business plan to secure funding.
- A business plan is not just for new businesses, but reviewing the business plan can help you see what goals you have accomplished and any changes that need to be made. It helps to make your business planning manageable and effective.
- The exercise of budgeting and planning will help define your target market and outline how you intend to sell/deliver your products to customers. To give your business the best chance of success.
What to include ?
Always bear in mind that anyone reading the plan will need to understand the essentials of your business easily and quickly. Your business plan should include: –
- An Executive Summary which consists of one to four-page summary illustrating the key points that are detailed in each section of the business plan.
- Business Overview, this provides a description of the business including the business formation history, the type of business, locality, the legal structure and type of business (Internet, Shopfront)
- Provide definition of your target market and how you will cater to the needs of your specific audience. Carry out market analysis which can provide an overview of the trends.
- Products and services, describing the services the business offers and which products are been offered.
- Analysis is required to show the strengths and weaknesses of your competitors. It is important to show how your business will gain a competitive edge against your opposition. Also include all financial information from start up costs to balance sheets.
- Provide projected income statements and accounts for a minimum of two to three years.
You should provide details to show that you have the resources to make any necessary payments and what the finance will be used for. Also, you may provide details of any security you can offer. The business plan can then be used as an effective tool in which performance can be measured and maintained.
Next Steps
If you want to find out anything further about this topic then please feel free to call on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email vee@navigatebr.com
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.
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