Beginner’s guide to writing a business plan

The key to the success of any business start-up is a solid business plan. The ability to put down plans on paper to provide a clear vision of a venture’s future is an essential skill.

Although it will take some time to do your homework and research your product and target market thoroughly, a business plan should be centred on the strategies by which a business aims to excel and expand.

The premise of a business plan is that it can provide the building blocks for how any start-up will operate on a short and long-term basis. Here are some of the areas a successful business plan should touch upon:

Executive summary – a concise overview of the business and the ambitions of taking the business forward in the future months and years. This is critical as many potential lenders and investors choose to invest in businesses based upon the clarity of their executive summaries alone.

Products and services – a summary of the products and services you plan to sell, including analysis and research surrounding your target market.

Marketing strategy – details of why you think your products and services will sell well within your target market. Provide a brief outline of how you plan to sell to your customers and how you manage to reach out to new markets via online and offline marketing.

Management credentials – this section provides start-up owners with the opportunity to sell themselves as individuals. Outline your personal credentials and the people you plan to recruit to work with in the infancy of the business.

Operations – a brief outline of where your business will be located, its facilities and the systems in place to manage the day-to-day running of the company. This section should also outline the planned development of premises and infrastructure.

Forecasting – translate the rest of your business plan into financial projections. Consider working capital, security that can be offered to lenders, repayment on any debts and current sources of income and revenue. Forecasts are generally run for the next three to five years, with the first 12 months the most detailed, critical timeframe.

When writing your first ever business plan keep in mind that it is likely to be the first thing any potential investors or lenders will see regarding your business. A professional, clear and honest business plan will help your business stand out from the competition and help you onto the first step of the ladder.

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