A well-drafted business plan has the following advantages for your business:
- It provides a detailed understanding of how your business works.
- It helps you to monitor progress in your business.
- It holds you accountable to the roadmap of your business.
- As best possible, it provides control over the fate of your business.
- It’s a sales and recruiting tool for attracting key employees or future investors.
Writing out your business plan compels you to review all aspects of your busienss including your products/services, marketing assumptions, operations plan, financial budget and staffing requirements. It will also aid you in identifying potential problem areas you could otherwise miss. For example, if your marketing plan projects thousands of customers within a specified time period, you would need ensure that your staffing is adequate to deal with the necessary growth.
All business plans should include a SWOT analysis to take a clear look at the Strengths, Weaknesses, Opportunities and Threats facing the business. The following sections, as a minimum, should make up your business plan:
- Executive summary – a snapshot of your business.
- Company description – describes what you do.
- Market analysis – research on your industry, market, and competitors.
- Organization and management – your business and management structure.
- Service or product – the products or services you’re offering.
- Marketing and sales – how you’ll market your business and your sales strategy.
- Funding request – how much money you’ll need for next 3 to 5 years.
- Financial projections – information like balance sheets and income statements.
There are numerous templates for business plans available on the internet, but, for a comprehensive, professionally prepared document we advise that you approach a qualified accountant or business planner for assistance. All Tax Shops will be able to assist you with your business plan!