If you are about to start a business, setting a business plan will help you focus on getting it right. So why write a business plan? Firstly and most likely you will need funding. Investors will want to see that you have the right plan in place to succeed. They rely on business plans to evaluate the feasibility of a business before funding it. And they also invest in the person as well as the business so showing them you have the right strategic plan in place will win them over. But even if you do not need funding a business plan will help guide you through making the right decisions. It will help provide evidence that you have a viable business idea.
Below is a list of the important points in drafting a Business Plan. The order and format of the plan is flexible but try and use a format that is simple and concise. Perhaps 4 or 5 main headings. If you have to present the Business plan that will be the time to expand on the bullet points used. Not all the below points may be relevant to your Business Plan but it is a starter for what you should be thinking about.
- What products and services it will provide.
- Who will buy from you.
- Your business vision and values.
- Short and Long-Term objectives.
- Your Mission Statement.
- If you need funding, how much and what it will be used for.
- Your current financials and projected financials.
- Who will be running the business.
- Understand your potential customers. Define your ideal customer.
- Provide evidence of market research.
- Make informed projections. Do not exaggerate the size of the market. Make sure you can support the figures with industry trends and sound analysis.
- Perform SWOT analysis. Investors will want to see that you understand the risks and opportunities that the business has.
- Do not lie. You will be found out very quickly.
WHAT IS THE COMPETITION
- Is there anyone else doing what you are planning?
- Know your competition.
- Is it an overcrowded market? Can you compete with current prices?
- Is your product better and why?
- You can beat the competition with lower prices and explain why.
- You are focused on a niche area of the market which you are well placed to exploit. Explain why.
- Make a financial plan
- Income Statement
- Balance Sheet
- Cash Flow Statement
As Accountants & Business Advisors, we are experts in advising start-up companies and businesses on making the right choices. If you need advice on making the right set-up, accountancy solutions, taxation and software solutions, please contact us for a no obligation consultation.
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