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Business plan

“Plans are of little importance, but planning is essential.”

Winston Churchill, former British Prime Minister.

A business plan is an outline that defines the goals, contingencies, and strategies of a business. A business plan is very important in determining the prospects of a business while giving a sense of direction to its stakeholders. A business plan is not a one-step process but needs to be reevaluated at every step or in response to changes in an environment. For example, the COVID-19 pandemic forced many businesses to replan their strategies, such as incorporating e-commerce services to boost their sales.

Steps in writing a business plans

Summary 

A business plan starts with a summary which gives an outline or overview of the business plan. The summary consists of the important points in a business plan i.e., strategic ideas and your finances. This section is written to give the reader a general idea about the business plan.

Your business 

This section of a business plan describes the general structure of your business which includes:

  • The problem – Your business is going to solve or a facility you are going to provide. 
  • The solution – Your business will provide to the given problem or how you will provide a facility.
  • History of your business – When was it established, and if it is new?
  • Your basic legal structure – Who is the owner? Who will work for who?

Market 

The most important part of a business plan is its market. This section includes:

  • Your product – What are you selling and to whom? Including your potential market, consumers you are targeting, and other prospects concerning your potential customers.
  • Market – What are the latest market trends? How are trends evolving? And the reason behind the trends or change in the trends.  
  • Competition – Whom are you competing? If there is any well-established industry of your product? How will you compete with your competitors?  

SWOT analysis

A SWOT analysis determines where your business stands and its prospects. SWOT is an acronym that stands for strength, weakness, opportunities, and threats. SWOT analysis is carried out before committing to any action or before making a certain plan. The strength and weaknesses in a SWOT analysis are determined by internal factors. These internal factors are but not limited to resources such as financials, location, equipment, employees, software and trademarks or patents, etc. While opportunity and threat in SWOT determine external factors. The external factors are market trends, funding, economic trends, political environment, and demographics, etc. 

You should not only make a SWOT analysis for your own business but making a SWOT analysis for the competitors as well will help you in winning business from them.

Execution of strategies

The above sections provide an overall analysis of your business prospects and the business environment. This part deals with the execution of your plan. The execution strategies include:

  • Marketing strategies and pricing – What are the features and benefits of your product? How will you market your product? What will be your prices? What platform will you use to sell your product or services?
  • Workings – How will you keep your records? Where will you be located? If your location is feasible for long-term growth? 
  • Human resources – What is your employee capacity? How is your employee team structured? What experience does your employee bring to contribute to business growth? 

Finances 

This section deals with your detailed finances and financial forecasts. This section might include:

  • Estimate your future sales
  • Forecast your profit or loss
  • Provide details about your cash flow defining: how much you will generate in a specific time and your cost in running the business.
  • Summarize the section by providing an overall picture of your finances with reference to set time while incorporating visual depictions i.e., graphs and flowcharts.

How can we help?  

A business plan is not only to forecast the prospect of your business but to pitch your business for potential investments and financial aid. With our extensive financial experience, Lyel Accountants provide the best business planning services while providing you with an accurate and realistic forecast. We make sure your business plan is optimized, ensuring maximum output and possible financial investments. If you need help in any aspect of your business plan, feel free to contact us.

If you would like more information regarding this, get in touch with us on 0113 436 0002 or use the form below.