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How to write a business plan
A well-crafted business plan provides a roadmap to entrepreneurial success. Read our guide to writing a plan that meets your strategic and operational goals.
By Dan MartinA business plan is an important document that outlines key details about your venture, what you want to achieve and how you are going to get there.
When you start your business, a business plan helps to clarify your targets and objectives from day one. As your business grows, you can use it to measure progress, spot potential problems and make necessary changes to ensure you stay on track.
A strong business plan is also crucial when applying for funding. To craft a document that convinces finance providers to give you the money, it’s advisable to work with an accountant.
Read on for the sections to include when writing a business plan:
Executive summary
This is a one or two page summary of everything in the rest of your plan, so it’s advisable to write it last.
Your business plan’s executive summary should provide a high-level overview of elements including:
- what your business does
- the team running the business
- your target customers
- your goals and objectives
- your sales and marketing strategy
- your financial projections
If you’re applying for funding, this is a very important section. Make it enticing and convincing so lenders or investors are encouraged to read on.
Company description and business goals
This section is a high-level description of:
- the products or services your business provides
- the customer problem or need you are addressing
- your unique selling point
- how and why you started the business
- your business structure
You should also outline your business goals and objectives in the short and long term.
Be clear and concise about what you want to achieve with your products or service. One way to keep your objectives focused is by using the S.M.A.R.T method, which is an acronym for:
- Specific
- Measurable
- Achievable
- Realistic
- Time-related
Target customers and market research
This section focuses on the market your business is operating in, your position within it, the customers you are targeting and how you will capitalise on your position in the market.
You should detail the market research you have carried out to understand the market, your potential customers and competitive advantage. This includes:
- the size of the market
- the geographical spread of the market
- amount of potential customers that exist
- customer demographics such as age, gender, location, income and profession.
You should also outline any anticipated future changes in the market and how you intend to respond to them.
Another key area to include in this section is information about your business’ competition. Analyse factors such as the products or services they provide, the prices they charge and their marketing strategy. Detail how your strengths and weaknesses compare to those of your competitors.
You could do this using a SWOT analysis. SWOT stands for strengths, weaknesses, opportunities and threats. It helps you to identify the positive and negative aspects that could impact on the success of your business.
If you believe you have no competitors, you should explain the need for your product and service. You could focus on how your target customers currently deal with the problem, and what your product or service will achieve.
Management and personnel
Outline your skills and experience (and those of any fellow founders or directors) that relate to your business. This could be direct experience such as previously working for, or running a similar business, as well as relevant transferable skills you have picked up in previous roles.
This section should also include details of any relevant training or qualifications you’ve completed, and mentors or advisers who are supporting you and the growth of your business. Provide analysis of the employees you will need in the future. Outline how you intend to find those people.
Marketing and sales strategy
A robust marketing and sales strategy is essential for achieving your business goals.
Use this section to outline how you will promote your product or service, attract customers, retain customers, and the process for making sales.
Information to cover includes:
- how you will price your product or service
- how you will distribute your products
- promotional channels you will use such as social media, print marketing, your website, public relations, exhibitions and online advertising
- strategies for retaining customers
Financial planning and projections
Understanding your costs and how much money you expect to generate is crucial for making a success of your business. Clear and concise financial projections will also help investors and other stakeholders understand the financial viability of your business.
Numbers to provide in your business plan include those that outline:
- a sales forecast showing an estimate of your expected sales revenue
- a profit and loss forecast projecting how much money you will make from selling products or services and the profit you will make from those sales
- a cash flow forecast showing the amount of money you expect to move in and out of your business each month
Operations and logistics
You need to understand how you will operate your business on a day-to-day basis.
Areas to cover include:
- production and manufacturing processes if you’re selling a physical product
- any suppliers you will use to produce your products or services
- how you will handle the shipping and fulfilment to customers
- inventory management including how much inventory you will have and where it’s stored
- the technology and equipment your business needs
- premises you will operate from such as offices, co-working spaces and retail stores
- legal requirements such as trading licences, health and safety inspections and insurance
- protecting your intellectual liability such as registering trademarks and patents
Finalising and refining your business plan
The final step in writing your business plan is to review and refine it. This may involve getting feedback from trusted advisors such as accountants or using business plan software to ensure your document is polished and professional.
A business plan is an evolving document and you should regularly revisit it to check you are still on track. Update and adjust the plan as necessary.
Staying on top of your strategy, planning for the future and adapting to different market and economic conditions will help you to stay on the road to business success.
Get help writing your business plan from TaxAssist Accountants
Contact us for personalised support with your business plan and take the first step towards securing your business's future.
Date published 23 May 2024
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.![](https://ta-support.nyc3.cdn.digitaloceanspaces.com/head-shots/uploaded/1700476376_dan-podcast-image.jpg)
Dan Martin
Dan is a freelance journalist and event host who writes content for TaxAssist Accountants. With 20 years of experience, he has interviewed hundreds of entrepreneurs from famous names like Sir Richard Branson and Deborah Meaden to the founders behind the newest start-ups. Dan was previously Head of Content at small business membership organisation Enterprise Nation.
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