Business Planning

How to write a business plan?

A typical business plan projects between 3 to 5 years ahead and is constantly being updated, refined and reviewed to reflect the current position, direction and goals. There are several common elements in a business plan.

• Executive summary:Like an introduction or overview, your executive summary is usually a 1-page snapshot of the overall business plan. A good executive summary should be detailed enough to give an investor a solid understanding of the business but brief enough to be reviewed within minutes.

• Business description:The description is a breakdown of what you do, where and how you operate, the target audience and branding.

• Market analysis:This consists of research into external factors of the marketplace, the industry and the competitors.

• Organisational objectives:This section sets out the business goals for short, mid and long term. They must be specific and measurable.

• Organisation and management structure:This touches on the hierarchy of the organisation, the function of various roles and the workflow throughout the organisation.

• Product/services:A detailed overview of your product and service including pricing, manufacturing, specifications, distribution and other relevant information.

• Marketing and sales strategy:This crucial component follows through from the market analysis section. The marketing and sales strategy determines how a business will get from their current market position to the new position detailed in the organisational objectives.

• Financial information:Projections, forecasts and budgets are important information to present in a business plan. Banks and investors use this essential part to approve funding.

• Appendix:Supporting information which is relevant or interesting should be attached to the business plan as appendices.