How to write a good business plan

People write business plans for a wide variety of reasons. Whether your intention is to secure funding or finance for the business, to persuade potential investors that your business is a viable going concern, or to explain the aims and goals for the business to the directors and/or employees of the company, the best business plans are written with their audience in mind.

Format

If you have never written a business plan before, it is very important to ensure that you know what a typical business plan includes, and the format that is widely accepted as standard. The exact layout and contents of a business plan is outside the scope of this article, but there is a wealth of information available on the internet. Make sure that you use UK resources, as styles can differ from US business plan formats.

Research

One of the most important pieces of research you will ever do in relation to your business is researching the market and your competitors. This is the case regardless of the industry you are in, and however many or few competing businesses there are. If you can show in your business plan that you have a comprehensive awareness of the marketplace, you will be better able to define your unique selling point (USP) with which to impress potential investors or financiers.

Your market research should also include likely target markets: the size of the market that is available to you; the growth that you expect the business to enjoy in the short, medium and long term; as well as how you intend to raise awareness of your business and advertise it to as many people as possible.

Be Realistic

A good business plan is not overly optimistic about what the business’s goals and future achievements will be. Inflated claims are very likely to sound alarm bells with potential investors or lenders who are making decisions on whether to loan you money.

Presentation

The words and language that you use is as important as the presentation of your business plan. If you do not write well, get someone you trust to check through the document before you send it off. Poor spelling and grammar do not instill confidence in the reader that you take pride in your work!

If you are using research from other sources, make sure you refer to the material that you have used. If you are using someone else’s facts and/or figures, it is vitally important that you do so accurately. Similarly, check and double check your figures – which should be detailed, fully explained and realistic. Your intended reader should find it easy to see how many sales you need to make to break even, and how much money you need for start up costs.

The Executive Summary

Although you may find it easiest to write this part of the business plan last, it is very often the first thing that people read and should be at the beginning of the plan. Investors usually read this section first, and only move onto other areas if they like what they have read in the executive summary. Therefore it should be interesting, engaging, and still a desire to turn the page to find out more.

Once your business plan is finished, make sure you get someone who has experience of business plans to review it. Speak to your local Business Link manager or contact your nearest Enterprise Agency for assistance.

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