How to write a business plan

Why should I have a plan?
You could just not have a plan, like two thirds of all owner managed businesses with a turnover of less than £10 million. Even the remaining third usually have one that is out of date or incomplete. However, if you would like to do better than your competition, avoid bankruptcy and grow your turnover, than maybe it is time to get started!

What it is not

It is not a document that is perfect, or set in stone. A business plan should be updated any time you need or want to and should help motivate you and your staff, not be too restrictive (unless you are completely going off on a tangent). It can cover the whole company, or just a part of it if you are not the MD/CEO. Many business people I meet don't start on one way as they are afraid they won't do it right. I say it is better to have an imperfect plan than none at all!

 
How to start

Think of all the areas that are important in your business, such as sales and marketing, finance, staff. Depending on the nature of your company, you may also have to include stock, administration or systems, manufacturing, legal etc. Then start logging where you are and where you would like to be at the end of the year. There are plenty of examples on the web of a plan, so you can either take a template like that or just start writing your own.

The next step

If it helps you, break these figures or results down into quarterly or monthly targets. Then write down what you or each department will do to achieve this. Lastly work out what this will cost and how you will finance this. Ideally have a Word document for the main plan and use a spreadsheet for the numbers side of it. If you have any extraordinary things happening in your business, like you are planning to sell it, or you have an office move coming up, write these down as separate sections.

Most importantly

Have a plan that is easy to understand for you and your key staff. Make sure it makes sense to anyone else who may need to read it, like bank managers or venture capitalists if you are looking to raise money. Share it with everyone who is affected by what is in it.

So good luck writing your business plan and get started today! For any help, contact me on lizannejakobs@ologycoaching.com or 01784 770595.