CREATING A BUSINESS PLAN

A business plan contains a complete overview of your business. It is broken down into several key components:

• Executive summary – A brief summary of what you do, who you do it for, and why.  

• Your vision – Insight into why you are starting the business.

• Legal Structure – By law and to protect yourself, you should consult a professional and decide how you want to structure your business.  For example, as a sole trader or a limited company. This is determined by how you plan to operate your business. 

• Management – A list of all members of management and leadership, including detailed skill sets and experience. 

• SWOT analysis – identifies your strengths, weaknesses, opportunities, and threats. It is a comparative analysis against your competition. 

• Guidance – This will identify who you will turn to when you need advice or instruction.  This portion may include mentors, business advisors, specialists, and so forth. 

• Regulatory Requirements – Research and identify the laws that regulate your industry and come up with an action plan as to how you will comply. 

• Products and Service – List in detail the products or services you plan to offer, why they are unique, and your price points for each.

• The Market – Who are your ideal clients, where are they located, what are their unique needs and desires, why they will purchase from you, and how will they purchase your product or service. 

• Suppliers – If you sell a product, identify your buyer and your backup suppliers.

• Financial Forecast – Determine an estimated forecast of sales, profit and loss, breakeven, and cash flow. 

• Financial Requirements – If you will need funding, identify when you will need it and how you will secure it. 

• Your Team – List your staffing, contracting or outsourcing needs, and the costs of each. 

• Resources – Identify the resources you need to start your business, why you need them and the cost. This may include office material, furniture, vehicles, equipment, etc. 

• IT Needs – Make a list of any Information Technology support you might need, why it is essential, and the cost.  This may include a website, scheduling software, payment processors, etc. 

• Action Plan – Create a detailed strategy of what needs to be done, when it needs to be done, and how you plan to execute. 

• Appendices – This section is for any other extras that may not be included in the main report, but are a necessary part of your business success. 

When you create a business plan, you clarify your idea and goals to ensure that they are feasible.  Committing your thoughts to paper creates a more precise picture of your business. It helps you identify the possibilities and recognize the risks.  This process helps you reduce your chance of failure.

Gaining a clear objective of your business will help you sell your ideas to employees, financial institutions, and potential clients. 

Oftentimes, people think business plans are solely for businesses that need financial assistance. However, a business plan is a helpful tool for the success of any business.  A business plan gives clarity, guidance, and direction.