What Should a Business Plan Include?
A business plan is more than just a document for banks or investors.
It can help you clarify your idea, understand your market, plan your finances and identify potential problems before they become expensive mistakes.
A strong business plan should be clear, realistic and easy to understand.
Executive Summary
The executive summary gives a short overview of the entire business plan.
It should explain:
- What the business does
- Who the customers are
- What makes the business different
- What stage the business is currently at
- What the main goals are
Although it appears first, many people find it easier to write this section last.
Business Description
Explain what the business offers and how it works.
Include information such as:
- Products or services
- Business location
- Business structure
- How customers will buy from you
- What problem your business solves
- Your short-term and long-term goals
Keep this section practical and specific.
Target Market
You need to show that you understand who your customers are.
Describe:
- Who is most likely to buy from you
- Where your customers are located
- Their needs or problems
- How they currently solve those problems
- Why they would choose your business
Avoid saying that your target market is simply “everyone”.
Competitor Analysis
Every business has competition.
Identify your main competitors and look at:
- What they offer
- Their pricing
- Their strengths
- Their weaknesses
- How your business will be different
This can help you identify opportunities and avoid entering the market without understanding what already exists.
Marketing and Sales Strategy
Explain how people will find your business and how you plan to turn interest into sales.
Your strategy may include:
- Social media
- Paid advertising
- Search engines
- Email marketing
- Local advertising
- Partnerships
- Referrals
- Direct sales
You should also explain your pricing and how customers will purchase from you.
Operations
This section explains how the business will work day to day.
You may need to cover:
- Suppliers
- Equipment
- Premises
- Staff
- Delivery
- Stock
- Software
- Production
- Customer service
The exact details will depend on the type of business.
Financial Information
Your financial section should show whether the business can realistically work.
This may include:
- Start-up costs
- Monthly expenses
- Expected sales
- Profit forecasts
- Cash flow
- Pricing
- Funding requirements
Try to use realistic figures rather than overly optimistic estimates.
Goals and Milestones
Set out what you want the business to achieve.
For example:
- Launch date
- First customers
- Revenue targets
- Hiring staff
- Opening a location
- Entering a new market
- Reaching profitability
Clear milestones make it easier to measure progress.
Risks and Challenges
A good business plan should also recognise what could go wrong.
Possible risks may include:
- Strong competition
- Rising costs
- Low demand
- Supplier problems
- Cash-flow issues
- Regulation
- Staffing difficulties
Showing that you understand the risks makes your plan more realistic.
Keep Your Business Plan Updated
A business plan should not be written once and forgotten.
As your business changes, your plan should change with it.
Review it regularly and update your goals, financial figures and strategy when necessary.
Need Help Preparing a Business Plan?
At Help Always Here, we can help you structure your business plan, organise your ideas and present your information clearly.
If you are starting a business, applying for funding or need a professional business plan, contact us and tell us about your project.
We can help you prepare the next step.