Updated: Feb 14, 2019
A formal business plan is an important document for any business. Entrepreneurs just starting out may find putting their thoughts, goals and in some cases dreams to paper an intimidating process. Nevertheless, it is vital to the success of your business. A business plan details every aspect of business operations. Writing a business plan need not be an overwhelming task if you consider the following information.
Purpose of Business Plan
Before drafting a business plan it is important to understand why this document is so important to the success of your business. Your business plan will detail all aspects of your business operations from marketing to organisation and management of your business. This document not only helps owners see where the business is headed, it is also required by most lenders and potential investors.
6 Essential Parts of a Business Plan
There are several essential elements of a good business plan according to the UK. Small Business Administration. Focus on the following six elements when drafting a business plan for your small business and the 6 elements contains subsections all important as the main heading is.
Although this is the first section readers will see, it should be the last section of your business plan written. The executive summary is an overview of the entire business plan and will either capture the readers attention or make them lose interest before reading any further. A crucial part of the business plan, the summary will basically tell readers the history of your company, where it is today and what direction it is headed; this is where you sell other on the potential success of your business idea.
Brief description of your company including the nature of your business and factors that will make your business a success, if your business is registered. Include a description of how your product or service will meet a need and any potential clients identified as having that need and your relevant experience and description of your industry.
information on your target market, demography of your potential customers, evaluation of your competition and market research results.
Management and the business
Details about ownership of company, management and board of directors (if applicable). Qualifications, experience and education are important to provide readers with an insight as to how these individuals fit into the organisation structure and what they can bring to the table in their designated roles.
Marketing and Sales Management
Describe the marketing strategy and how you intend to drive sales. Include market penetration strategy, growth strategy, distribution strategy and communication strategy. Sales strategies should also be included to provide information on sales staff and activities.
Product or Service Line
Describe to readers what you are selling and how the product or service will benefit current and potential customers. Provide evidence that your company offers a product or service that serves as a solution to a problem identified by your target market. Information regarding service or product costs, suppliers and any new services which may be added should be included in this part.
Request For Funding
Include current and future funding requirements, how that funding will be used and long range strategies that impact funding request. Any factors which directly impact your ability to repay your loan should be included, such as acquisitions, sale of the business in future or a buyout.
Both past financial data as well as prospective financial data will be required by potential lenders. Include the following financial statements for the past three to five years; cash flow statements, balance sheets and income statements if you are for that long in business and never done a business plan. The same statements should be prepared with forecast data for the next five years. If you just starting out your finances either personal or start-up loan you got has you cannot provide three to five finance but you can provide forecast data and if you started a year or two years in your business you provide the finances for these years,
This section should contain your vision statement, mission statement, short and long term business goal and objective including Action Plan with milestone to achieve.
A separate section which should not be included in the main body of the business plan is the Appendix. Proprietary and confidential information may be part of the appendix and as such should not be easily accessed by all individuals requesting your business plan. Creditors may need access to this information, therefore it should be available on an as-needed basis.
Documents which may be included in the appendix include market study details, reference letters, personal and business credit history, patents, permits, contracts and contact information for consultants.
As you can see, writing a business plan requires a commitment of time and resources to ensure all relevant information is present. A crucial document in securing funding from creditors and investors, the business plan should be well organised with a focus on specific strengths that set your business apart from the competition. A Business Plan need to be updated on a yearly basis and should have date of creation and yearly reviewed date as your business change overtimes your plan should reflect these changes.
Now Girlfridayz can support you create a comprehensive and very thorougher Business Plan for you which will get you funding if you go and see any lender or creditor or update your plan for £565 for start up company or SME’s £685
We also have in our online store a Business Plan Template and guide on how to use it and complete it - you do not have to start from a blank page it is all done for you all you will need to do is to complete for business information including all information mentioned above.