Why and how to write a business plan 

business plan

If you’re thinking about setting up in business by yourself then the first step will be to write a business plan. It is the key to success and one of the most important aspects of starting a new business. In addition to giving you a clear focus for your business it is also essential if you need to look at financing the venture. No bank manager will lend money without a considered business plan. Your plan should provide a detailed examination of the way in which the business will start and develop. It should describe the business, product or service, market, operation, capital requirements and projected financial results.

Why write a business plan? 

Writing a business plan will give a new business the best possible chance of success. It will ensure that you pay attention to both the broad operational and financial objectives of your new business and the details, such as budgeting and market planning. You will be able to set clear objectives for your business and clarify your thinking. Some times it allows you to take an idea and do the math. In some instances this will show future problems which might arise and you can make an informed decision whether to go ahead with the venture.

You will also use the plan to seek funding, whether that be from banks or private investors. In a way this is part of a negotiation taking place between you and your prospective financial backers. The section of the plan where you detail your financial needs can be considered your opening bid in this negotiation. I

How to write a business plan 

A business plan needs to be relatively in-depth and should cover a range of aspects. As a rough guide the following headings would be:

  • Overview
  • Description
  • Personnel
  • Product
  • Marketing
  • Practices
  • Financial Forecasts
  • Financial requirements

If you need help writing a business plan or with start-up finances then D. E. Ball Limited can help. They are accountants and business advisors in Shropshire. Visit their website for more information.

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