We all have different goals when it comes to starting a business:
- To make more money or create another source of income.
- To create a certain lifestyle than the one we currently have.
- To help as many people as we can with a certain problem.
Whatever that goal may be, this is what we’re striving for and won’t stop until we achieve it.
As important as it is to have a goal, we also need to have a plan as to how we will get there.
We may have the destination in mind, but we also need to consider the route to get there.
This is where a ‘business plan’ comes in.
In this blog I’ll talk about what a business plan is, why you need one and what to include in it.
By the end of the blog, you’ll know what you need to do to write your own!
What is a Business Plan?
Simply put, a business plan is intended to act as the ‘road map’ to get to your ultimate goal.
It is essentially the guide for how you will create, launch, and run your company.
However, writing a business plan isn’t easy, in fact it can be quite daunting. There’s a lot of information to consider before you create your plan, and then you have to write it all down!
It includes strategic, high-level information, and tactical details regarding your company. It includes market research, competitor analysis, as well as financial projections.
Sitting down to compile that much information can be challenging, but can certainly be done.
There are two ways to go about writing a business plan:
- You can continue reading for help through the process, what to include, and tips for success.
- If you prefer a more structured approach check out the free online course Kauffman FastTrac.
Whichever path you choose, the most important thing is to just get started!
Why do you Need a Business Plan?
There are two main reasons why you need a business plan. The first reason is for yourself.
There are many different plates that entrepreneurs need to juggle when it comes to running a business: product development, sales, marketing, operations, admin, and many more.
To stay on top of all these tasks, your plan helps you focus on what you need to work on every day, week, and month in order to hit your monthly, quarterly, and yearly targets.
The other main reason why you need a business plan is not for you, but for future investors.
If you watch shows like The Apprentice, you know that candidates must have business plans.
A business plan shows potential investors that you’ve thought through your business idea.
The more detail you have in your business plan, the more confidence they have in you.
The more confidence they have in you, the more likely they are to invest in your business.
The same goes for applying for any private or public grants: they all require a business plan.
The sooner you have one prepared, the more ready you are to apply for external funding.
What to Include in your Business Plan?
If you ask 10 different entrepreneurs what to include, you’ll likely get 10 different answers. Business plans are customised to suit different businesses, but the main things to include are:
- Executive Summary, which gives a quick overview of your business plan.
- Business Description, including your vision, mission, and team.
- Market Strategy, which describes how you’ll launch and position your business.
- Competitor Analysis, describing your main competitors.
- Unique Selling Point (USP) about your product/service, including your features and benefits.
- Sales and Marketing, how you plan to sell and gain traction.
- Business Operations and Management, who will be doing what within the business.
- Financial Analysis and Projections, what you think you’ll be earning over the next few years.
Once you’ve outlined your business plan, you can then begin to fill in each of these sections.
Give yourself time to do research, but set deadlines so you know when enough is enough.
What Next? Get Started
Just remember that a business plan is never finished. There will be new tools or new strategies that you discover along the way that you will want to include in your business. And that is totally fine. What you know about your business now will be way different a year from now.
However, at the end of the day, a plan is just a plan, you actually need to implement this plan.
The only way to turn your goal/dream into reality is by creating a plan AND by taking action.
A plan is just a predefined route, but you actually need to drive to reach your destination!
I hope you guys have enjoyed reading this blog on the steps to take to writing a business plan.
Have you written or in the process of writing a business plan? Share in the comments below!
If you’ve enjoyed reading this, check out Growth vs Lifestyle Business: Which is right for you.
