{"id":18171,"date":"2021-05-18T09:00:25","date_gmt":"2021-05-18T08:00:25","guid":{"rendered":"\/gb\/en\/blog\/?p=18171"},"modified":"2021-12-17T10:05:27","modified_gmt":"2021-12-17T10:05:27","slug":"business-plan","status":"publish","type":"post","link":"\/gb\/en\/blog\/business-plan\/","title":{"rendered":"How to Create a Business Plan – Examples, Templates and Tools"},"content":{"rendered":"

In business, planning is everything. Whether you\u2019re starting in business for the first time or you\u2019ve got years of experience under your belt, one thing remains true: you need to have a thorough business plan. There\u2019s so much else to do that it\u2019s easy to put this to one side, but it\u2019s an absolute must-have.<\/span><\/p>\n

There\u2019s an old saying: \u201cFail to prepare, prepare to fail\u201d. Even the best business idea won\u2019t get anywhere without preparation. A business plan can help you set your new <\/span>startup<\/span><\/a> or small business<\/a> on a healthy trajectory of sustainable growth, as well as equipping you to navigate challenges you\u2019re likely to encounter along the way. In this guide, we\u2019ll look in detail at how to create a great business plan.\u00a0<\/span><\/p>\n

What is a business plan?<\/strong><\/h2>\n

A business plan<\/a> isn\u2019t just about a balance sheet, as important as that is. It\u2019s a written document where business owners outline their key activities and objectives and sketch out a general strategy for reaching them. Both new startups and established firms looking to expand use business plans to attract investment.<\/span><\/p>\n

Your business plan can help you identify and understand your target market, devise reliable financial projections, create a roadmap for the future and provide an executive summary of what you\u2019re trying to do. They also allow entrepreneurs to list key objectives and explain to potential investors how they intend to realise them.<\/span><\/p>\n

Business owners should revisit their business plans periodically. This is because circumstances can change, often quite rapidly, and render business plans outdated. They should therefore rework their business plans so that they\u2019re in line with current targets and expectations.<\/span><\/p>\n

\"Businessman<\/p>\n

When and why do you need a business plan?<\/strong><\/h2>\n

If you\u2019re looking to entice new investors to put cash into your business, you\u2019ll need to convince them that it\u2019s going places. After all, seasoned investors\u2014including venture capitalists\u2014need to see that you have a credible vision for your business. A good business plan can go a long way to convincing them that it\u2019s worth their while.<\/span><\/p>\n

Potential investors will also be looking for proof that you\u2019ve undertaken a proper competitive analysis, have a credible marketing strategy and that you understand your potential customers\u2019 demographics. This can provide them with the reassurance they need to provide the firm’s capital for future scalability.<\/span><\/p>\n

\"Businessmen<\/p>\n

Of course, business plans aren\u2019t only about external investors. They\u2019re also useful for internal teams, giving a clear sense of direction to any decisions undertaken. Even if you have all the funding you need, you should still have a business plan in place to ensure you\u2019re heading in the right direction.<\/span><\/p>\n

Business plan components<\/strong><\/h2>\n

Now we know why you need a business plan. But what exactly goes into one? Let\u2019s take a look at the core components your plan needs.<\/span><\/p>\n

Executive summary<\/strong><\/h3>\n

An executive summary provides an overview of your business and what you\u2019re hoping it will achieve, including a concise summary of the other sections of your plan. As such, you should leave writing it until last so that these summaries accurately reflect the contents of their respective sections.<\/span><\/p>\n

Don\u2019t forget to include your value proposition, which encapsulates what your business is about and what makes it stand out from its rivals.<\/span><\/p>\n

Mission statement and objectives<\/strong><\/h3>\n

Next, you\u2019ll need a company description covering three key areas: your business\u2019s history, mission statement, and key objectives for the future. You don\u2019t need to be exhaustive here\u2014instead, it\u2019s better to be concise. Your objectives, too, should be realistic, concrete, and measurable. Otherwise, they won\u2019t be credible either to investors or employees.<\/span><\/p>\n

Market analysis<\/strong><\/h3>\n

Your business plan must include solid market research. Think about who will comprise your customer base and their demographics\u2014including age, location, class background, hobbies and so on. To be precise, otherwise, investors are likely to look at your analysis with some suspicion.\u00a0<\/span><\/p>\n\t

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Competitive analysis<\/strong><\/h3>\n

Next, you need to look at who your prospective competitors are. As daunting a task as this might sound, you need to know what your business\u2019s rivals are doing. This might include their approach to marketing, their <\/span>social media<\/span><\/a> output, their standards of customer service, how frequently they launch new products, how they perform in customer reviews, and other vital details.<\/span><\/p>\n

Your product offering<\/strong><\/h3>\n

In your plan, you need to explain what products and\/or services your business will offer. This must include the specific benefits, how new products are produced (including how raw materials are sourced), pricing, intellectual property (where relevant), and what makes your offering distinct from those of your competitors. Investors need to be convinced of both the viability and profitability of your product.<\/span><\/p>\n

Marketing strategy<\/strong><\/h3>\n

A <\/span>marketing<\/span><\/a> strategy is crucial to getting new businesses off the ground and expanding them. You should recap your growth strategy and target market before explaining how you intend to market your business. This marketing plan can include online promotion, loyalty schemes, media ads, and customer retention strategies.<\/span><\/p>\n

Financials<\/strong><\/h3>\n

Your business plan must address the financial aspects of running your business. If you\u2019re launching a brand new startup, you obviously won\u2019t have past financial records to discuss. However, you should still cover budgetary issues in your plan.<\/span><\/p>\n

You\u2019ll need to include income statements, balance sheets, cash flow statements, and profit and loss statements for established businesses. Three years of reporting is ideal, if possible. Needless to say, you must ensure that all figures are accurate and reliable.<\/span><\/p>\n

Management and staffing<\/strong><\/h3>\n

It\u2019s important to address staffing in your business plan. Talk about your existing team and, where applicable, where you\u2019re looking to recruit additional talent. You should also address your legal structure,\u00a0whether you’ll be forming an LLC or incorporating your business<\/a>, and the cost of hiring legal experts and accountants to ensure compliance.<\/span><\/p>\n

\"woman<\/p>\n

Tips to make business planning easier<\/strong><\/h2>\n

When you\u2019re <\/span>starting a business<\/span><\/a>, there\u2019s a lot to do! Writing a comprehensive plan for your business might sound like quite an undertaking, but there are some things you can do to make the whole thing less strenuous. Firstly, you should keep it concise. Truly comprehensive business plans need to cover much ground, but they don\u2019t need to be epic in length; 10 to 20 pages should suffice.<\/span><\/p>\n

Your plan should also be written in plain and straightforward language. Could you not make it impenetrable? Don\u2019t forget that investors and others receive many business plans, and they only have so much time in their day. Please get to the point, and make sure your plan is divided into clear sections so that it\u2019s easier to digest.<\/span><\/p>\n

Finally, make sure your goals and objectives are clear in your own mind. You need to know what you\u2019re looking to achieve with your business and over what time frame. You might well find that your objectives change as you progress through the writing of your business plan, and that\u2019s okay: you might learn new things in the process!<\/span><\/p>\n

\"People<\/p>\n

Business plan templates<\/strong><\/h2>\n

There are plenty of business plans which you can find online, and it\u2019s worth reading some of these to help you get a better idea of what you need to include in yours. Let\u2019s take a look at a couple of examples by way of explanation. Here\u2019s the first:<\/span><\/p>\n

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  1. \n

    One-page business plan<\/strong><\/h3>\n<\/li>\n<\/ol>\n

    A one-page business plan provides a quick overview of what your business is and what it does. It effectively condenses your full-length business plan into key points. This is particularly useful to potential investors, as it allows them to digest the ideas and strategies<\/a> underpinning your business easily. Here what it needs to include:<\/span><\/p>\n