I often get asked by readers of my newsletter how they can write a Business Plan. To the uninitiated writing a Business Plan can be a daunting task but once you have a clear framework to work off it's not as hard as you may first think.
Here is a basic prompt you can use to start writing your first Business Plan.
Don't Go It Alone, Ask For Help
Picture this. You've never written a Business Plan before; you sit down at your table and end up staring at a blank piece of paper for 3 hours! Then, another 3 hours later, all you have is a bin full of scrap paper. However, in order to help you put a plan together there are a variety of sources of help you can tap into:
• Professional advisers
• Business colleagues
• Advice agencies
• Your staff
• Books and websites
You will be surprised as to how many sources of advice there is out there so spend some time hunting them down.
Follow a Framework
Having a framework or outline to follow can make the task of writing a Business Plan so much easier. The 3 parts to your Plan are:
• Where you are now
• Where you intend to be
• How you are going to get there
This is your framework which will guide both you and the reader through your business and your idea.
Tell the Reader Where You Are Now
In your first section you want to paint a picture of where your business is now. These are the main areas to cover:
• Business history
• Location and premises
• Your product or service
• Your market
• Your customers
• Your competition
• Your staff
• Equipment
Provide an insight into each part of your business so that the reader of your Plan knows how the business looks now. Obviously if you are just starting up provide an idea of how you see these aspects of your business once you get going.
Tell the Reader Where You Intend To Be
Having given an overview of your business, the next step is to tell them where you want to be. The main points to cover are:
• Your objectives and goals
• State what you want from the reader - a loan or overdraft for example
• Explain why you need and what it will be used for
Tell the Reader How You Are Going To Get There
It's all very well promoting your idea and business but the important point to put over is how you are going to get there. Here are the key points to cover:
• Marketing plan
• Additional resources needed to meet your objectives and goals
• Your contribution in terms of cash or equipment
• Security you can offer to support a request for finance
• Profit and loss and cash flow forecast to show that you plan to make money and that you can pay back the loan
If you are able to see how the staff in similar businesses interact with customers, how the marketing is done, and generally assessing what works and what doesn't.
Provide Some Supporting Information and Evidence
Your Plan will have contained a lot of information, so it is helpful to include supporting documentation to provide more background. Placing these additional items as an appendix ensures that the flow of the Plan has not been affected by additional information.
What sort of items could you include?
• Letter of support from your Accountant
• Confirmation of pending orders from customers
• If you are purchasing a property, you could include the sales particulars
• Independent industry surveys showing that your sector is doing well
• If you are buying machinery or equipment include quotations
• If you business' main asset is you, include your CV!
Ask Someone to Review It
When you are totally immersed in a task you can easily miss obvious mistakes. Ask someone to review your Plan to ensure there are no spelling or grammatical errors - don't rely on Spell Check! Does it all make sense? Have you been logical in your arguments?
Get the Presentation Right
After having spent a lot of time and effort on the content you don't want to spoil it all with poor presentation! Here are some tips:
• Get the Plan typed; it will make it look more professional
• Make sure all the papers are clean and that there are no dirt marks or coffee stains! Buy some good quality paper
• Purchase a classy folder or binder to put your Plan in (paper clips or staples may not portray the right image!)
• Don't forget to include all your contact details
So that's it! Follow these simple steps and you'll quickly have your Business Plan written and ready to go
Robert Warlow
Small Business Success
About the Author:
For more information on how to deal with your bank and increase your chances of getting a small business loan check out Rob's e-book 'The Secrets of Getting Your Bank Manager to Say Yes!' at
http://www.smallbusinessloanhelp.co.uk
If you are looking for a regular flow of ideas and tips then subscribe to Small Business Success, Rob's free weekly newsletter, which provides you with small business tips, ideas and articles. More details at
http://www.smallbusinesssuccess.biz
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342
Date Published :
Oct 6 2009