A guide to developing a business plan
Developing a business plan provides you with clear sense of direction, as well as usually being required by lending or funding institutions to support your loan or grant application.
The following offers you a free template for preparing a business plan, which you can either use as is, or modify and simplify it to better meet your requirements. The template provides you with a suggested list of key topics or sections to appear in your business plan, together with a brief summary of the type of information to be included.
Some of the sections will require you to prepare more detail than others - with some sections possibly only comprising a couple of paragraphs of information (eg exit strategy), whilst others may comprise a couple of pages (eg. a description of the nature of the existing competition in the marketplace)
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Major Topic |
Summary |
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Executive Summary |
A maximum one page summary of the business, objectives, assumptions, approach, factors for success, cost and revenue summaries. This should have a “selling” focus to it, whereby you |
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Table of Contents |
To navigate the document |
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Company Description |
Overview, line of business, ownership, governance, objectives, location, image |
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Product |
The products or services that you intend to deliver - including pricing models, distribution methods and customer service procedure |
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The Market |
Who exactly is your target market and why? What could be the opportunity for market expansion, based upon consumer trends |
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Competition |
Who are the competitors that exist now and who might emerge in the future i.e. who might be looking at the same approach to the same market |
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Marketing and sales plan |
Describing how you plan to reach your target market - perhaps including internet promotions and other advertising |
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Potential Risks |
Vulnerabilities of the business, what would make it not work, what could emerge that is outside of your control - for example a change in legislation |
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Operational Plan & Staffing |
Infrastructure, product selection processes, delivery processes, accounting methods and practices, auditing, customer database . |
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Financial Plan - costs and forward projections |
Establishment costs, on-going costs, expansion costs and revenue projections |
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Exit strategy |
Longer term future plans e.g. expand by bringing in a partner, transfer control to a relative, or sell the business. |
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Proposed Time-line |
Subject to approval, the implementation schedule - milestones for implementation such as company registration, equipment purchase, staff recruitment, website and promotions |
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Appendix - Supporting Documents |
This could include copies of any existing registrations, or any relevant policies or procedures that have already been developed for the business |
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More resources
If you're starting out, then check out Selecting a Business Name
See also "Seven Common Business Pitfalls" if you want to avoid the most common causes of new business failure
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