Your business plan is the sat-nav that keeps your company moving in the right direction. Having that guidance can be a massive benefit to your success as a business. But what elements should you include, and what are the main considerations to think about?
Why a Business Plan Matters
A detailed business plan will generally include:
- A Clear Direction for the Business – A well-crafted business plan gives you a defined path to follow, outlining your company’s purpose, goals, and strategies. This ensures that everyone is aligned and pulling in the same direction.
- An Overview of Your Financial Strategy – Your plan should include revenue projections, expense forecasts, and funding requirements. This financial guidance helps with budgeting, cash flow management, and securing investments.
- An Overview of Threats and Opportunities – A robust plan identifies potential challenges and risks. This helps you develop contingency plans, reducing risks and keeping your company on track.
- A Summary of Your Sales and Marketing Strategy – Outlining your sales and marketing strategy ensures you are targeting the right audience and differentiating your business in the market. This is essential for attracting customers and driving revenue.
- Attracting the Right Investors and Lenders – A solid business plan enhances your credibility when approaching investors or lenders. It demonstrates your commitment, market understanding, and ability to achieve long-term success, which is crucial for securing funding.
Seven Points to Kick-start Your Planning Process
There’s no ‘one-size-fits-all’ business plan. Your plan should clearly outline your goals and how you intend to reach them. Consider these seven points to kick-start your planning process:
- Describe Your Business – What’s your business, and how does it work? Have an ‘elevator pitch’ that quickly and simply describes the potential of your business.
- Set Out Your Business Goals – Define your objectives and vision for the business, ensuring clarity on your core mission.
- Outline Your Ideal Customer – Conduct research to identify your target market (the people or organisations you’ll sell to).
- Do Some Competitive Analysis – Identify your competitors, considering direct and indirect competition. What sets your business apart?
- Perform a Business Financial Analysis – Can you demonstrate your business is financial viability?
- Sketch Out Your Sales and Marketing Plans – Detail how you’ll attract customers and generate revenue. Consider the 4 Ps of marketing (Product, Price, Place, Promotion) and your return on investment (ROI).
- Outline Your Business Structure – Provide an overview of your organisational structure and the strategic and operational roles of directors.
Keeping Your Business Plan Dynamic
A well-structured business plan is essential, whether you’re a new founder just starting out or a seasoned business owner looking to grow and diversify. However, your business plan is never set in stone. It’s a dynamic document that evolves with your business. Regularly revising your business plan helps refine your strategy, improve your goals, and adapt to changing markets.
How Traktion Can Help
A solid business plan gives your company direction, structure, and meaningful objectives. As business advisors, we help you understand your goals and vision and translate them into a strategic business plan. We also track your performance against this plan and work with you to update it as your business evolves.
If you’d like to know more about business planning, we’re here to help. Get in touch to discuss your business plan today.
Or join our Business Planning Workshop this March and start the start the new financial year with a clear roadmap to success:
📍 Gisborne – Register here
📍 Hawke’s Bay – Register here
