How to write your first business plan?

Starting your own company can be both challenging and exciting at the same time. Whether you intend to remain a one-person business or plan to become an employer, you will be your own boss and as such hold the liberty to determine your business objectives.
That is why, it is crucial to lay out a business plan so that you can focus on your key targets, ensuring every new assignment you undertake is moving you closer to your goals.

What is a business plan?

In general, a business plan should define your company’s top-level goals and “paint” its future. This strategic document is there to help you to visualise the steps you need to take to get from where you are today to where you want to be in the future.
To keep you focused on your future objectives, your business plan does not have to consist of fifty or so long A4 pages with endless definitions, it is simply there to serve as a tool you can use as a compass when your business starts to grow.
Remember, your business plan is not set in stone, and you have the flexibility to change it over time. The ongoing procedure of writing and reviewing your business plan will help you get the best out of working for yourself.

Before you begin, ask yourself the following questions:

• What is your mission statement?
• What are your goals for development?
• What is your overall objective for the next one, three, five years?

Establishing your long-term goals

It’s easy to get swept up with your daily to-do list instead of pausing and revisiting your strategic priorities for the long term. There’s no doubt your daily duties may be as equally important, however, it is crucial to ensure the business development activity remains on track and adequately prioritised.

“It takes as much energy to wish as it does to plan. ~ Eleanor Roosevelt

Choose appropriate assignments

As a business owner, do you find yourself pulled in multiple directions trying to seize the opportunity that offers the highest monthly or daily rate?
While that approach does make economic sense to most of us, taking into account just the financial advantages of a specific role or contract may steer you away from your long term business objectives, and maybe higher potential gains in the future.
One of the benefits of working with a business plan is that it will ensure that your time is only invested in activities that are going to drive your company forward.

Attracting investment

In addition to the above, if you’re ever looking to attract investors to your company, a strategic business plan could help you articulate what your company’s services or products are all about, their market potential and how you visualise your business position in the future.
How do you start writing a business plan?
Once you’ve figured out where you are in comparison to where you would like to be, your business plan needs to layout your marketing, financial, and operational strategies.

What are the essential parts you should include in your business plan?

As a plan of action, anyone looking at your business plan should be able to understand what your company or business does and how it will generate income and profit?
You will also need to illustrate the steps you plan to take to achieve your goals and successfully compete in your market.

Your business plan should include the following sections:

Executive summary

This section summarises the primary mission of your business, including an overview of your business vision, a description of your competitive advantages, and a short illustration of what phase of development you’re in at this point in time.

Your background

This part explains the motivational elements behind your business operation and what you aim to achieve?
Consider questions like why you want to run your own business, and how and why you’re passionate about this.
In this part of the plan, you might also want to reference any training you plan to attend in the future to better your product, service and skills.

Products and services

This is your opportunity to drill down into the core of your business: the product or service that you’re selling. Define exactly what your product/service is, why customers should purchase from you over your competitors, and why your service/product stands out in the market. Decide how you aim to sell your service and your pricing strategy.

Marketing

It is essential to have a firm idea of who your target audience is and how you plan to promote your product or services to them?
Naturally, your marketing strategy might differ quite substantially, depending on the services or products you offer?
For example, if you are a retailer, you might need to rely on promoting Google Shopping Ads while if you’re a contractor, establishing business relationships on LinkedIn might be more practical.

Legal requirements

It’s also important to understand the required administrative responsibilities. In this section, you should keep a record of details such as your business insurance, tax rates, and if you have employees, employment laws and pension schemes.

Financial plan

Staying on top of your finances and company’s accounts is vital for your financial growth. Additionally, you are required to keep a detailed record of any revenues and expenditures, your cashflow, profit margin and your financial forecasts for the next 12 months.

While all of this may sound stressful, setting out on your own and outlining how you want to drive your business forward can be exhilarating, a chance for you to bring your ideas to life.