a good business plan is essential when thinking about starting a new venture it will help
you apply for business finance and keep your vision on track once things are up and running
there is no right or wrong way to write a business plan start at how you would like the business to
look when it's well established and work backwards from there now this will help you set goals for
the business and plan how you will reach them starting out your business plan should be detailed
if you know where you're going it's much easier to get there business plans do vary from business
to business and from industry to industry it's important to have a plan that suits both you and
your business so take the following areas and include them in your plan especially the points
most suited to your business most business plans will include some if not all of the following
think of this as your 60 second pitch you need to get straight to the point
and describe what your business is all about in less than 120 words
it's usually a good idea to write this last once you've thought through the rest of your plan
being able to describe your business clearly and succinctly to others is the first step in success
what does your business stand for now this should be brief and achievable sum up in one sentence
what your business is all about where you want to go and how you'll get there
make sure you include in your plan your guarantee and usp
usp is your unique selling point the reason your products or services stand out from the rest
unless you're going to sell something no one else has ever had or provide a service
never seen before you'll be in a crowded market and you'll be competing against other businesses
with guarantees and usps now that'll encourage customers to use you not the opposition
while you don't want to limit your customer base the clearer picture you have
of your target market the easier it will be to communicate with them
once your business is operational you should be able to update this using
real sales data and nail down who your target market actually is
set out major business goals for the period covered by the plan plus various milestones
you want to reach along the way your objectives should be realistic and they should also follow
the acronym smart so smart stands for specific if the goal is too general you'll lose focus
measurable so you can tell whether you're on track or need to make changes
achievable large goals can seem daunting so break them down into smaller individual steps
relevancy your objectives should directly contribute to your overall business goals
timing time frame have a deadline that provides urgency and focus
this outlines your strengths weaknesses opportunities and threats now this helps you
compare your business against your competitors and build on your strengths and opportunities
and mitigate your weaknesses and threats so strengths what does your business do
well what makes you better than the competition weaknesses what doesn't your business do well
how can you improve these opportunities where are the areas for growth inside and outside
of the business threats what are the external factors that could affect your business
how would you let people know about you and what you offer set out some sales targets and plan
your strategy to achieve them set a budget for achieving your sales plan and be clear
about how you will measure your success who are you targeting your products or services at
how old are they where do they live what are their interests
understanding your customer will help you shape your products
and marketing in a way that's most likely to reach them and appeal to them once you've reached them
when building your business plan describe your main competitors there may be competitors who
aren't in your precise sector of business but you may still be competing against them
for the same customer dollar now it's a really good idea to do a swot analysis
as best you can on each of your main competitors then make use of this information by assessing how
your business could reduce your competitors strengths and opportunities while also
taking advantage of your competitors weaknesses and be a threat to them
your financial forecasts are the one of the most important parts of
your business plan they show how much money you need to make to cover your operating expenses
and then make a profit they are also critical if you're approaching investors your business
plan should contain a cash flow forecast a balance sheet forecast calculate how
much your business will need to get going what assets and equipment you will need and include
purchases of capital things like buildings land vehicles machinery and equipment
anything that you think is necessary to get your business running i have probably repeated myself
many times but it's important that you get the right advice especially when it comes to budgets
cash flow and bank lending i strongly suggest you talk to an accounting professional to help you get
it right before you start writing your business plan may bring up questions about your business
and once you reach the end you may not be happy with certain parts of your plan or
your prospective day-to-day operations no market stays the same your business will face different
challenges and opportunities over time that's why it's essential that you regularly review and
update your business plan at least annually don't just leave it in the bottom drawer gathering dust
put aside some time in your diary for this otherwise it will get lost amongst all the
other things that you have to do thanks again for watching if you like the video and would like to
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