One of the most important documents in the world of commerce is the business plan, a document that details every aspect of a business operation and as far as the entrepreneur is concerned, their business plan is their guideline to success.
Crunching the numbers
Before you go to the trouble of writing a business plan, you need to crunch the numbers to make sure there is sufficient margin for the business to make a profit. Of course, you will need to apply for business loans in Sydney from a leading Australian commercial lender and once you have the capital, you can start writing your business plan.
Feasibility study
Prior to writing a business plan, you need to be sure that the venture is doable; ask yourself if you can get together the necessary resources. Be realistic and if there are issues, they need to be rectified prior to going any further.
Main components of a business plan
The main sections of a business plan are as follows:
- Overview of the business – A single page should suffice to describe the nature of the business and what it is all about.
- Sales & marketing – Of course, you need to outline exactly how you plan to reach your target audience.
- Startup costs – A detailed account of startup costs.
- Running costs – List all outgoings for running the business. A breakdown of all running costs that clearly shows all expenses.
- Organisation flowchart – This shows the structure of the business, detailing the roles and responsibilities of the major players.
- List of company assets – All assets should be listed, along with evaluation.
- 5-year forecasts – It is important to set goals and a 5-year forecast is considered standard, while some extend this to 10 or even 15 years.
The average length of a business plan would be 15-25 pages and you should spend as much time as you need to create the document.
Seek a professional opinion
Once you think your business plan is finished, you should approach a business coach and ask them to give you their professional opinion. There are likely to be issues that you have to amend and this exercise helps you to gain a deeper understanding of your business and the many variables that come together to form a business environment. If you have any problems compiling your business plan, you can invite a business guru to help you put your plan together. Click here to discover why outsourcing makes sense for a small business.
If you are seeking investors to fund your project, it is imperative that your business plan is complete and on-point. Any potential investor should receive a copy to study in advance of any arranged meetings, so they have a chance to study it and form questions for the business owner.
To summarise, your business plan is the most important document regarding the development of your organisation and therefore you should spend as much time as is needed to produce a comprehensive plan.
