Starting a new business is exciting, but it can also be difficult to succeed, so it’s essential to prepare with a comprehensive business plan.
A business plan is a document that sets out your business. It outlines what your business does and what you are trying to achieve, covering things like the business objectives, strategies, sales, marketing and financial forecasts. A business plan can also help to convince your customers and suppliers to support your business. You’ll need a business plan if you want to secure any type of investment or loan from a bank.
A business plan will help you to:
- Clarify and strengthen your business idea by creating an effective strategy.
- Identify any potential problems within your business idea.
- Highlight your goals and measure your business progress.
- Determine any future financial needs and attract investors.
At Ashburnham Insurance we have provided our top tips for creating a great business plan that can help your business to evolve, well into the future!
Be Concise & Specific
It’s important that anyone reading your business plan can understand what your business is about from a quick glance. Include a summary of the business within your plan, using simple language but detailing how you plan to make money. It is also important to be specific on how your business will deliver on the plan.
Know Your Target Audience
Another important thing that will help your business become successful is knowing your target audience. Think about who will you be selling to and how many similar businesses there are in the area. Make sure that your business plan is clear about how to handle this.
Understand Your Finances
Finance is an essential part of a business plan. If your business doesn’t make any money, it won’t be successful and so you need to be clear about how your business will turn over a profit. This part of the business plan will be helpful when it comes to understanding your objectives and securing loans and investments for your business.
Review Your Business Plan
Finally, read through the plan and check that it is realistic, including evidence to back up what you say. Try to imagine the impression the plan will make on your bank manager. Show the plan to friends or an expert and ask what they think.
For more help with creating a business plan, you can download a free business plan template here from The Prince’s Trust website.
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