How to write your business plan

What is a Business Plan and Why Do You Need One?

Think of a business plan as the roadmap for your business journey. It’s a written document that describes your business, its goals, and how you're going to achieve them. It might sound a bit formal and intimidating, but it’s one of the most valuable things you can do for your new venture. It’s not just for getting a bank loan; it’s for you, to give you clarity and a clear path to follow.

Having a plan helps you to:

• Get clarity: It forces you to think through every aspect of your business, from your big idea to the tiny details.
• Make smarter decisions: When you face a tough choice, you can refer back to your plan to make sure your decision aligns with your goals.
• Secure funding: If you need a loan or want to attract investors, they will absolutely want to see a solid business plan.
• Measure success: It sets out what you want to achieve, allowing you to track your progress and see how far you’ve come.

The Key Sections of a Business Plan

Your business plan doesn't need to be a 100-page masterpiece. A good, clear plan is better than a long, complicated one. Here are the typical sections you should include:

1. Executive Summary: This is a short, punchy overview of your entire plan. Think of it as the blurb on the back of a book. It should grab the reader's attention and make them want to know more. Top tip: write this section last, after you’ve figured out all the other details.
2. Company Description: Here, you'll explain what your business does, what your mission is, and what makes you unique. You'll also include details about the legal structure you've chosen.
3. Market Analysis: This is where you show you've done your homework. You’ll include the findings from your research into your target market and your main competitors. It demonstrates who your customers are and how you fit into the current market.
4. Organisation and Management: This section outlines who is running the business. If it’s just you, talk about your skills and experience. If you have a team, describe their roles and expertise.
5. Products or Services: A detailed description of what you are selling. Explain how your product or service benefits your customers and what makes it different from what competitors offer.
6. Marketing and Sales Strategy: How are you going to reach your target customers and persuade them to buy from you? This is where you'll outline your plans for pricing, promotion, and sales.
7. Financial Projections: This is the numbers part. It includes your startup budget and your projected sales (cash flow forecast). Be realistic and show your workings!

How to Get Started

Feeling a bit overwhelmed? Don't worry. Here’s a simple way to approach writing your plan:

• Don't start with a blank page. There are loads of great, free templates available online. The GOV.UK website and The Prince’s Trust have excellent resources and templates specifically for UK businesses.
• Keep it simple and clear. Avoid jargon. Write in plain English so that anyone can understand it. Use headings and bullet points to break up the text.
• It’s a summary of your work. Remember, your business plan brings together all the thinking and research you've already done. You're just putting it all into one structured document.
• Get feedback. Once you have a first draft, ask a trusted friend, family member, or mentor to read it. A fresh pair of eyes can spot gaps or confusing sections you might have missed.

A final thought: Your business plan is a living document. It’s not meant to be written once and then filed away to gather dust. Review it every few months. As your business grows and changes, your plan should evolve with it. Good luck!