Writing a business plan can be really daunting. You’ve got a great idea. You know it can work. You want to get started! But the Bank Manager says, May I see your business plan!

This is when you need How to Write a Business Plan – Free Information for Entrepreneurs. You really can write a business plan in an afternoon.

What is a Business Plan?

A business plan for a new business is a document or report which answers key questions about your idea including:

• What goods or services will it provide?
• Who will buy them and why?
• Who are your competitors and how are your products/services different?
• How much do you expect to sell and when?
• What resources (e.g. money, employees, premises) do you need?
• Etc, etc

If you have thought about your business start up idea carefully and carried out some research, creating a business plan should be relatively easy. All you need to do is to write your ideas down.

Why Do I Need a Business Plan?

Mainly you need a business plan for yourself. Working through a list of questions needed to compile a plan will highlight any areas of your business which you have overlooked or on which you need to do more research.

Sometimes, of course, it may be your Bank Manager or an organisation offering you a grant who will require a plan.

Your basic business plan will be the same whoever reads it but the audience can make some differences.

If the plan is for your bank or to apply for a grant, you may need to use a specific format or even fill in their form.

If the plan is to be viewed by third parties who you want to impress, then presentation, spelling and grammar will be important. Not as important as the content but important. You may also want to include lots of evidence that what you say is true. As an example, it could be helpful to include your full CV and even copies of your qualification certificates as appendices.

If the plan is purely for your own use, perhaps to pull your ideas together and make sure that you have really considered all angles then you may choose to spend less time on presentation. You may also omit some pieces of evidence but be careful not to use this as an excuse for failing to carry out enough research.

How Long Should My Plan Be?

There are no strict rules. 15-20 pages plus appendices would usually be plenty long enough. It may be longer if the area of business is especially complex but many professionals consider that overly long business plans are the written by people who are not thinking clearly. And everyone hates waffle!

Possible Structure

There are lots of business plan structures to choose from. The outline below is just one suggestion. Provided the sequence is logical and you have covered all key issues the exact structure is not critical.

Executive Summary

A one or two page summary of the plan, write it at the end. Worth spending time on because many people will only read the summary.

Introduction

The introduction should include a very brief outline of your business idea.

Market

This section is about the people who will buy your product.

• Who needs your product?
• Where will purchasers be based?
• How
• Market characteristics – emerging, growing or stagnating, recent or impending changes and their likely effects
• Competition – What competition is there? Why are you better or different?
• Other

Your Business Idea

• What is your idea?
• How will your product or service be different than your competitors?
• How much will your product or service be sold for?
• Market research undertaken

Team

Use this section to consider whether your team will be able to deliver your plan.

• Who will your team be?
• What are their strengths and weaknesses?
• How will you fill any skills gaps?

Resources

• What resources will you need to get your business going?
• Where will you get them from?
• Do you own any intellectual property (e.g. copyright and trademarks) relevant to your idea? Have they been protected?

Marketing

• What marketing do you plan to carry out?

Financial Projections

• Key projections are profit and loss and cashflow. The first shows how much money you are planning to make and the second is essential to ensure that your plans will not result in you running out of cash. A balance sheet is also helpful.
• Include explanations of any calculations and assumptions.
• Show graphs to summarise detailed figures contained in the appendices.
• If you have limited financial expertise, contact an accountant for further advice and support.

Appendices

Include any very detailed information or supporting evidence as an appendix. Refer to it clearly in the main text.

Good Luck with Your Business

Well done, that is it. Wasn’t that difficult was it! Now the hard part is implementing the plan. Many people come up with great ideas and plans – only a few implement successfully. Good luck!

But I Need More Help!

If you are still feeling that you would welcome some more help on How to Write a Business Plan, free information is available from Business Link or contact:

Bplans – click on the links on their home page to access a huge number of sample business plans.

Teneric – they offer a free business plan writing course.

Author: Caroline Blatchford
Article Source: EzineArticles.com
Provided by: Creditcard Currency Conversion Fee