Creating a business plan is an important step in starting or expanding a business. A well-thought-out business plan can help you make informed decisions about your business, identify potential risks and opportunities, and establish benchmarks to track your progress. It creates a strategic roadmap for structuring, growing, and operating a business. In some cases, an operating plan may also be needed, to lay out tactical aspects of business, such as specific timelines and processes of the operations. Whether you're just starting out or have been in business for years, a business plan can be a valuable tool. Here are some tips on how to create a business plan that's right for your business.
Business Plan Outline
Cover Page
Executive Summary
Company Description
Management and Operations
Services or Products Lines
Market Analysis
Marketing and Sales
Financial Statements and Forecasts
Executive Summary
This section of the business plan summarizes everything in your business plan. This section should be brief, but it will include important aspects of each topic in your business plans, such as basic information about the company, the management team, products and services, and the target market. This section should also include the company’s mission and high-level financial information and funding request if you plan to ask for financing. Also, write to convince the reader that your business is ready to succeed.
Always keep in mind that the business plan is meant to answer the four W’s of your business: Who, What, Where, and Why.
Who is the company and their management?
What is the problem the business solves?
Where is the company operating?
Why should the business get the reader’s attention (Loan, Equity, Sales)?
Company Description
This section includes basic information about who the business is.
Company Name
Legal Structure- date and place of registration
Business goals
Industry
What problem the business solves?
Who the target customers are?
Management and Operations
This section will introduce the reader to the management team and the structure of operations. Include an organization chart to lay out who oversees what in your company. It is important to have a good overview of both the company’s current and future workforce. On the operations side, identify the complete value chain from supplier to customer. Include resumes of management as an attachment to the business plan.
Services or Product Lines
Showcase your product and service mix in this section and describe what you sell or what services you offer. Include things like price, cost, and customer testimonials. Share any important aspects such as intellectual property, copyrights, and patents.
Market Analysis
Perform an analysis of the market and the competitive landscape in which your product or service is sold. Include things like Total Attainable Market (TAM), Serviceable Attainable Market (SAM), and Serviceable Obtainable Market (SOM). Look at how your products or services compare with your competitors. Identify opportunities and threats in the market using a PESTEL analysis. PESTEL will help you scan the external environment for Political, Economic, Social, Technological, Environmental, and Legal factors.
Marketing and Sales
Explain how you reach your customers and how you close a sale. Hash out the details of your marketing strategy and address things like inbound marketing, digital marketing, email marketing, and paid ads. Explain the reach, conversion rates, and the cost of the marketing plan. This section is important in explaining the revenues in your financial projections.
Financial Statements and Forecasts
Supplement your business plan with clean historical financial statements and a three to five-year financial projection. This would include an income statement, balance sheet, cash flow statement, working capital, and capital expenditures schedules.
Applying For Loans
If you are starting a business or if you are an existing business thinking about getting a loan or an investment, having a business plan is a requirement.
GFT's accounting services can help you get your books ready for your business plan. GFT also provides financial planning and business services that can guide your business planning process.