How to Create An Effective Business Plan

Creating an effective business plan requires patience, passion and accuracy. It is important to get your facts correct and covering all the necessary foundations about your business. As you continue to grow, your plan may change with updated financial data and different targets.

Summarise what your business is about

Before delving into any specifics and figurative data, an executive summary is necessary at the start of your business plan. This should outline what your business is, what business model you use and what makes your idea stand out in the marketplace. This section of the plan should take up a few pages and be clear, concise and address all the unique aspects of your business. A well-written summary will entice the reader and give them an overview of everything they need to know.

Company description

This component of your plan should provide detailed information about the company.  You can go into the company’s history, the mission it sets out to achieve and the core values. This will give the reader a good sense of the company’s ethos and reinforce the validity of your business proposal.

Products and Services

An effective business plan will always go into detail about the products and services on offer. Explain what exactly your product/service does and how it impacts customers in a beneficial way. Is there a high demand for it? If so, why should consumers buy into your brand? Additionally, you should also include information about where you source your product/service, and if it is environmentally and ethically friendly. 

Marketing Plan

The driving force behind every brand is its marketing plan. Without a good marketing strategy, your business will go unnoticed and can result in low sales figures. In this section of your business plan, you should go into specifics of how you want to advertise your brand and make it appealing to customers. For example, will you use celebrity endorsements to promote your business? Or take a different approach by setting up your own social media accounts and advertising on various platforms. There is a myriad of ways to market a new product/service, choose the one which will best get your message across and engage your target market.

Operations

Any potential investor will be sure to ask about the day-to-day running of your business. It is important to give a detailed overview of how the business runs. You should address:

  • Day-to-day activities- what daily tasks are carried out to ensure the smooth running of the business?
  • Stock control- how do you manage your business’ inventory? How often do you re-stock? How do you keep tabs on what is being sold? 
  • Staff – how many people help run the business? Do you employ workers? 
  • Management- Who runs and makes executive decisions about your business? 

Finances and Budgeting

To run any business requires funding. Having a budget and explaining where and what the money will be spent on will be crucial for readers to understand the financial planning behind your business. A sensible and realistic approach is the best way to budget. This section should be a large part of your document, going through sales figures, profits, losses, gross and net margins. Knowing your numbers as an entrepreneur shows you are serious about the profitability of your product/service.

budgeting for a business

Creating an effective business plan requires patience, passion and accuracy. It is important to get your facts correct and covering all the necessary foundations about your business. As you continue to grow, your plan may change with updated financial data and different targets.

How we can help

Here at Carrington Blake Accountancy, our experts are happy to advise you on how to set up a successful business with our business planning service. With all of the financial data and expertise required to write a comprehensive business plan, who better to write your business plan than your accountant? Contact us today for further information on the services we offer.

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