Mavis Amankwah
By Mavis Amankwah
The words ‘business plan’ can often cause panic for the new business owner. In days gone by, a business plan would have meant pages and pages of documentation, strategy, forecasts and statistics. Thankfully, today our aim is to work smarter and more efficiently. People have come to see the business plan as a simple and functional tool.
Your business plan should be created to explain and illustrate the vision you have for your business and to help others (namely your bank manager) help you achieve your vision.
You need a business plan if you’re:
- Starting a new business, you’ll need a plan to clearly outline every aspect of the business and show how it will succeed.
- Buying an established business, you need to identify the strengths and weaknesses of the business to decide if you can make a success of it.
- Already up and running and need additional finance, your plan will help you deal with and convince potential investors.
- Applying for grants.
Business Plan
What should be in your plan?
- Your marketing aims and objectives, e.g the anticipated size of your customer base at the end of your designated period.
- Operational information such as where your business will be based, premises and equipment required and the suppliers you’ll be using.
- Financial information. Sales and cash flow forecasts, profit and loss forecasts and accounts information.
- Business objectives including dates and targets.
Who will read your plan?
- Bank manager
- Investors
- Business advisors/ mentors
- You and your colleagues/ staff running the business who will be using the plan on a daily basis.
Of course, all of your information will have to be correct. But it’s equally important that your plan is clear and logically laid out. Most people will use their plan to attract and/or secure investors, but a good plan should also be a strategy document. Use it to identify where you are now and where you want to be in six months, one year etc. How you’re going to use your bank loan/funding. It should also ensure that you manage your business priorities and meet your key targets.
If you already have a business plan, it won’t hurt you to revisit it and see if any improvements can be made – it will help you in the long run. If you’re approaching your first plan, don’t see it as a hurdle, look at it as a tool to help sustain your business and keep you on the road to achieving your goals.
* Mavis Amankwah is an entrepreneur and the Founder and Managing Director of Rich Visions, a marketing and communications agency.
If you would like a FREE 15 minute business consultation with Mavis or details of future events, visit www.mavisamankwah.com and for more information about Rich Visions visit www.richvisions.co.uk