Writing a Business Plan

Posted on 12 July 2010

With businesses failing at an alarming rate the need has never been greater to start off on the right foot with a clear understanding of exactly what you hope to achieve and how you will do it.

Every business needs a plan. A well thought out and carefully structured business plan is the key to the long-term success of any business. Whether you are just starting a business, buying one already established, in need of extra finance for expansion or want to move your business forward towards your goals you need a business plan.

Understanding the Need for a Business Plan

Your reason for producing a plan will be different for each situation:

If you have an existing business and want to move it forward in a specific direction.
If you are starting a new business you will require a plan to clearly assess every aspect of the business and show how it will succeed.
If you are buying an already established business you will need to identify the strengths and weaknesses of the business to decide if you will be able to make it a success.
If you are already up and running and in need of extra finance you will need a plan to convince those putting capital into your business that you can and will succeed.
If you are applying for one of the many grants available.

The Target Audience for your Business Plan

Who will read your plan?

When you begin to compile a business plan you must always remember who the plan is for. Just as an author must always remember who will read his books so you must remember who will read your business plan. With this in mind you must present your plan in a clear and logical format. This will enable the recipient to achieve a clear understanding of your business and make a decision, or take appropriate action based on the information in the plan.

It doesn't (and shouldn't) read like "War & Peace" or be candidate for best door stop in the office! What it should be, though is concise, relevant, sufficiently thorough, practical… and convincing.

Some of the people who will benefit from your plan include:

YOU AND YOUR TEAM… who will be running the business and using the plan on a daily basis!
your bank manager
alternative providers of finance
business advisory organisations
friends and colleagues who will invest in your business

The bottom line is…. Without a plan you won't achieve the potential that you or your business have.

Isn't it time you had a plan?

[Return to our business coaching news index page]