When starting your business, one of the first ports of call will be to draft and create a business plan.

This plan will form the foundation of your processes and systems and become integral to your business’s framework. It will also help you discover funding sources and identify any potential roadblocks you may encounter.

If you’re unsure where to start, then this article will act as a guide to building your business plan.

Why do I need a business plan?

A solid business plan can help you find funding from lenders or investors. Your plan will be the first thing potential investors will need to look at so they can evaluate the business and whether it’s a risk or not.

Not only that, but a business plan allows you to plan strategically, helping you focus on the time, money and resources you’ll need to get everything off the ground.

Your business plan will allow you to evaluate your ideas before creating the final product. This is the perfect time to research your market and competition.

When building your business plan, you must know your audience and how to tailor it to them while clearly and concisely communicating your goals.

Creating your plan

The very first thing any potential investor should see is an overview of your business. This section should be the persuading factor to encourage readers to follow the rest of the plan. In this introduction, you’ll describe the concept of your business and its goals and vision. It’ll also include marketing strategies, current and projected financial statements and who is involved in the business.

Next, you need to include market analysis. You must be able to show anyone reading that you’ve done the research and you know what you’re talking about. No one will invest in a business with a half-baked plan. Identifying competition and market trends is essential to running a successful business.

To explain your business structure, you should list your products or services and outline your management and organisation. Investors and lenders will want to know what you’re planning on selling.

If you don’t have a niche, you’re less likely to find the funding you need. You need a unique selling point. When describing your management structure, you will need to explain the responsibilities of each person involved and why they’re essential to your business’s success.

The main thing investors will be looking for is your financial plan. You need to include three major views on your finances: an income statement, a balance sheet and a cashflow statement.

Your income statement gives people an insight into your funding sources and expenses. This will provide them with the bottom line, profit and loss (p and l) your business has experienced, or projections of your future income.

A balance sheet shows investors how much you own in business assets and how much you owe.

Your cashflow statement is similar to your income statement but also considers your paid expenses and your collected funding. If you have more money coming in than going out, you have a positive cashflow. A cashflow statement aims to show you when cash is low, when you have enough left over, and where you may need to plan to source more funding.

Get started

If you’re a new or existing business and need any help building your business plan, the team at PBA can help you calculate the numbers and put everything together professionally.

Get in touch today.

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!