2. Everyone knows that coming up with a good
business idea is only half the battle – you
need a good business plan to go along with it.
Failure to produce one can result in a loss of
direction, and a complete lack of focus in
your business from day one.
You need to know where you’re aiming to
take your business, or it’s going to end up
completely aimless.
3. Just so we’re clear, a business plan is
considered a written statement of what your
business is going to provide, what you want
to achieve with the business, and how it’s
going to get there.
Oftentimes business plans are used in
support of a pitch for funding, as such they
need to be concise yet provide potential
investors with all the information they need.
4. Do your research. Many a businessman or
woman has thought they’ve came up with an
idea that’s a surefire hit, only to find out that
someone else has beat them to it.
A new spin on the right idea can work under
certain circumstances, but whatever you do
don’t pass of the idea as your own no matter
how good your intentions – you’ll lose instant
credibility.
5. You only get one chance to make a good first
impression, so remember that the summary
section of your business plan should be
short, snappy yet interesting to potential
readers.
It should explain the basics of your business
and where you see it going, however it’s
usually a good idea to write this last, as you
don’t want to write anything you may
contradict later.
6. Next up, you’ll want to include a concise
background of yourself and the key
skills/experience you bring to the table.
Think of it as if you’re applying for a job and
you’ve only got one chance to promote
yourself. Stay truthful (it’ll quickly become
apparent if you lie), but feel free to toot your
own horn if you deserve to.
Also, include a CV of anyone else included
within the business.
7. Now it’s time for you to describe accurately
what you’re going to sell.
Remember that anyone reading over the plan
might not be as familiar with the market as
you, so explain everything in thorough detail.
Be sure to include any statistics or proof
which show that there is a gap in the market
for your offerings as well.
8. Accurately describe the market for your product
or service, as well as your typical customers.
Include information regarding said target
customers’ income levels, factors under which
they’d buy your product or service, and whether
you’ve already made any sales.
Thoroughly describe the number of customers
you think will be interested in the product within
your target area. Even though they won’t buy
your product right away, if you consider them
eventual targets then make a note of them.
9. Next up make a list of your direct
competitors, and how you plan to compete
with them.
Acknowledgement of the competition is one
thing, but you’ll need to state what makes
your offering different from theirs and why
people will use you ahead of them.
10. You have to make a note of how you’re going
to get your product or service to people.
If you’re operating something as simple as a
shop this is pretty straight forward, but how
are you going to deal with online, or
international sales?
Similarly, where are you getting your stock
from?
11. How are you going to receive payment from
customers?
Again, this is fairly simple if you’re selling
goods over the counter, but do you have
systems in place to take care of credit card
transactions or online orders?
12. This is a very important part of any business plan
– basically, you’ll have to list expected business
costs (including wages, rent, stock purchase and
electricity prices for your business) then weigh it
up against a realistic sales figure.
Many businesses don’t turn a profit overnight
and that’s all well and good – just be sure to be
honest about it. Many investors are interested in
long term gains than those over the short
term, as long as they feel they’re onto a winner.
13. Finally, it’s important to be transparent about
your own financial situation.
Make a list of all your personal outgoings, and
put a survival plan in place for if you don’t
quite meet sales targets.
Not only does this make sense in terms of a
business plan, it makes sense from a personal
standpoint – you need to know what you’re
going to do in case of an emergency.
14. This Business Plan Pack from the Prince’s
Trust has already proved a hit with many
start-up businesses, and we recommend
having a look over it.
