Build Your Business, and Keep More of Your Money

Creating a solid business plan is a very necessary first step in making your business a success. It can be tempting to get carried away with the excitement of what self-employment can bring but it’s also important to realise that passion and optimism are not going to build a successful business on their own.

The following list will give you a good idea of what you should put in your business plan. Although not a definitive list, considering the following will give you a good start to formulating that all important business plan.

1. The Pitch

Often called the executive summary this is one of the most important sections of your business plan. Why?

It may be the only section a potential investor may read. Give a good overview of your entire business plan but keep it straight to the point and make them want to read on.

2. It’s all about you

People will not only want to know about the business but the person and the brains behind it, think about including the following:

• Your background
• Why you want to start the business?
• The reasons why you can make it a success
• Your qualifications and experience
• Hobbies and interests, make sure you keep it relevant to the business.

3. What are you selling?

What is it that you have to offer, is it a service or a product or both? Make sure you go into as much detail as possible, the person reading your business plan may not be aware of your product or industry, so even if it seems obvious, be sure to outline all of the details.

4. Who are your customers?

In this section, you will need to describe your customers, who are they, where they are located and how why they will buy from you. You will also need to back this up with evidence found in your Market Research.

5. The Market

We spoke in an earlier article about the importance of Market Research, in this section, you will need to cover in great detail the market in which you will be operating in. It’s a good idea to focus on your local market not just the bigger picture and try not to solely rely on friends and families opinions. Get out and about and really get to know your industry.

6. The Marketing

In this section of your business plan you’ll need to consider how will your customer find you and how you will spread the word? Think about the following;

• Advertising
• Word of Mouth
• Business cards
• Brochures
• Social Media
• Trade shows
• Website

7. The Competition

Having studied the market you should be very aware of who your competition is. In this section it is very important to outline your USP (Unique Selling Point) and why people will buy from you and not your competitor. It’s also very useful to conduct a SWOT analysis. Outline your businesses Strengths Weaknesses Opportunities and Threats.

8. Operations & Logistics

How is your business going to run day to day? Here you will need to consider the following points:

• Production
• Suppliers
• Insurance
• Legal Requirements
• Equipment
• Customer Service
• Transportation
• Delivery if applicable

9. Money Talks

Not many people go into business to not make money, this section will be very time consuming and detailed but is one of the most necessary parts of your business plan. Included in this section should be:

• Personal Survival Budget – How much you need to make to live
• Pricing Strategy
• Break down of costs
• Profit Margins
• Break Even points
• Sales Forecasts
• Cash flow forecast

10. Plan B

It may not be nice to think about but having a backup plan is necessary. Even with detailed planning, a business may fail. It is worth thinking ‘what if..’ and having a plan ready if the unexpected arises.

February 6th, 2014