Your Step by Step Guide to Writing a Business Plan
So, you are trying to write a business plan? I know that staring as a blank screen/paper can be daunting, hopefully this step by step guide can help you on your journey.
Step-by-Step Guide to Writing a Business Plan
A business plan is your compass, essential for navigating your entrepreneurial journey and attracting support. It can also help you secure funding, attract investors, and stay financially grounded.
Remember to tailor your business plan to the specific needs of your audience, whether it is investors, lenders, or internal stakeholders. A well-crafted plan can help you secure funding, attract talent, and guide your business toward success.
Read our article on Crafting a Compelling Business Plan for benefits and tips to support you.
1. Executive Summary
Purpose: This is a concise overview of your business plan, designed to grab the reader's attention and provide a snapshot of your key points.
Content: Include:
Key investment criteria: What your business does, target markets, unique selling points, barriers to entry, and competitive advantage.
Risk management: Identify potential risks and your strategies to mitigate them.
Strategic objectives: Outline your plans for growth, new products/services, and market expansion.
Business qualifications: Highlight your team's experience and expertise.
Financial projections summary: Briefly summarise your expected growth, earnings, and ROI timeline.
Your ask: Clearly state the funding you are seeking and how it will be used.
2. Company Overview
Purpose: Provide a comprehensive overview of your business, including its history, strategy, target market, products/services, and financial goals.
Content: Include:
History: Briefly outline your company's background and milestones.
Strategy: Clearly articulate your business goals, competitive advantages, and vision for success.
Target market: Define your ideal customer and the specific market segment you are targeting.
Sector/industry: Identify the industry your business operates in and assess its growth potential and barriers to entry.
Products/services: Provide a detailed description of what you offer.
Operational structure: Introduce your team and their roles within the company.
Financial goals: Outline your revenue projections, funding requirements, and major expenditures.
3. Business Description
Purpose: Provide a more in-depth look at your business, including its unique selling proposition, key participants, and pricing strategy.
Content: Include:
Opportunity: Explain the problem your business solves or the need it fulfils.
Products/services: Describe your offerings in detail, including features and benefits.
Key participants: Introduce your team and their qualifications.
Pricing: Discuss your pricing strategy, how it compares to competitors, and your profit margins.
4. Market Analysis
Purpose: Demonstrate your understanding of your target market, its size, and the competitive landscape.
Content: Include:
Target market: Identify your ideal customer, including demographics, psychographics, and behaviours.
Market size and growth: Assess the size of your target market and its projected growth.
Barriers to entry: Identify any obstacles that new businesses might face in entering your market.
Competition: Analyse your competitors, their strengths, weaknesses, and market share.
Competitive advantage: Explain how your business will differentiate itself from competitors.
5. Operating Plan
Purpose: Outline your operational strategies, including production processes, facilities, technology, and payment terms.
Content: Include:
Order fulfilment: Describe your production process, quality control measures, and capacity.
Services: Explain how you will deliver your services and manage customer relationships.
GDPR: State how you will collect, store, and protect data.
Facilities: Discuss your physical facilities, equipment needs, and future expansion plans.
Technology: Identify the technology and software you will use to operate your business.
Payment terms: Outline your payment policies and credit terms. Also discuss how/if you will carry our due diligence on companies. I.e. Credit Checks
6. Marketing and Sales Plan
Purpose: Describe your strategies for reaching your target market and generating sales.
Content: Include:
Key message: Clearly articulate your brand's message and value proposition.
Marketing strategy: Outline your overall marketing approach, including target audience, channels, and tactics.
Sales strategy: Describe your sales process, sales team structure, and customer acquisition strategies.
Marketing activities: Detail specific marketing campaigns, promotions, and events you plan to implement.
Marketing models to support your plan:
SWOT – Strengths, Weaknesses, Opportunities, Threats.
PESTLE – Political, Economic, Social, Technology, Legal, Environmental.
SOSTAC – Situation, Objectives, Strategy, Tactics, Action, and Control.
7. Financial Plan
Purpose: Present your financial projections, including income statements, balance sheets, and cash flow forecasts. You can attach an excel document here to provide more information to the reader.
Content: Include:
Income statement: Forecast your revenue, expenses, and net profit.
Balance sheet: Project your assets, liabilities, and equity.
Cash flow statement: Forecast your cash inflows and outflows.
Financial assumptions: Clearly state the assumptions you have made in your financial projections.
8. Appendices
Financial Information: Include this, but keep it succinct.
Other information: Only include it if absolutely necessary as it may not be looked at!