How to write the perfect Business Plan

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

Step #1 - Start with an Executive Summary

An executive summary is an extremely important first step in your business. You must be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest.

This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Step #2 - Describe your company

Once you have the executive summary in place, you can work on the company description, which contains more specific information about what your business does and how it will make money.

It is useful to include a section that outlines the history of the company and how it has evolved over time.

You should also include -

• Company registered name

• Company address

• Structure of the business, such as Sole Trader, Limited Company, Limited Liability Corporation (LLC) or Partnership (LLP)

• Details of any person with significant control (PSC)

Step #3 - Identify Business Goals

The purpose of a Business Plan is to show what your goals are and how you’re going to achieve them so remember to put your objectives at the heart of your plan.

Wherever you are on the business journey, you can return to your goals and assess where you are in meeting your in-progress targets and set new goals to work towards.

Financial Goals / Key Performance Indicators (KPI's)

The most common way to track business performance is through financial Key Performance Indicators like Revenue, Profit or Cashflow.

Whilst they are important, the existence of non-financial KPIs alongside financial KPIs can help provide crucial context behind them.

Non-Financial Goals / Key Performance Indicators (KPI's)

Non-financial KPIs provide a holistic view of business performance, which help you to understand what is causing the financial performance.

For example, if your business experiences a significant decrease in revenue, you can understand why by tracking non-financial KPIs, such as client satisfaction. This may highlight areas that need tweaking to improve the overall experience you provide and in turn increase customer spending.

Step #4 - Define Products & Services

The business plan should have a section that explains the products or services that you’re offering.

This is where you could include details on pricing, product lifespan, any Unique Selling Points (USP) which differentiate you from the competition and whether you have any patents or trademarks.

If you have any images of products or customer testimonials this is the place to include them.

Step #5 - Provide a marketing strategy

Customers determine success.

Without customers, your business is just an idea. So, this section details exactly how you plan to find and keep your customers.

It should outline what strategies your company will use to generate leads and sales, including advertising and marketing campaigns.

With marketing, remember that there’s no single way to sell your product. Marketing strategies aren’t something that you should set in stone. They always grow and evolve with your company and as you try out new things that work or don’t work.

Step #6 - Conduct Competitor Analysis

A company needs to have a good handle on the current state of its industry and the existing competition.

You’ll need to carry out competitive research about other businesses that are similar to yours and identify any strengths or weaknesses you have vs them.

When doing comparative analysis, ask questions such as:

• What are your competitors doing well?

• Do they offer any services that you don’t?

• Do you offer services that they don’t?

• What do customers say about them?

• How do they market their company?

• Who are their customers?

When writing this part of your business plan, you should explain where your company fits in, what types of customers you are targeting, and how easy or difficult it may be to take market share from your competitors.

Step #7 - Create a financial plan

The other essential part of a business plan is the financial plan. If your business isn’t going to make any money, it won’t be successful so you need to be very clear on how you will make a profit.

Use it to your advantage – your plan will be incredibly useful when it comes to securing loans and investment.

Even if you are not applying for funding, a financial plan / budget is a personal tool to help you understand your objectives.

"If you fail to plan, you plan to fail." – Benjamin Franklin

If you need help preparing a business plan or financial model? Get in touch