Whenever someone comes to a member of the Startup Assist UK team to ask for advice about a business idea or a startup , one of the first questions we ask is, ” do you have a Business Plan?”
60% of the time the answer is “yes’. So, if the conversation continues and we get involved to help the person with their business, we obviously ask to see the Plan. It is a ‘Plan’ in their mind , which is a great start, but it is usually just a collection of ideas or ambitious targets !
First it must be appreciated why a Business Plan is essential. It is created to define a roadmap for the business. What are the business targets and timescales, and the actions to be done, to achieve the targets. On the way it identifies such specific issues as marketing required, funding, set up costs, cashflow , etc. Miss any one of these items and it could be the reason a business fails.
Sometimes, in the process of creating the Plan, reasons are identified why the business planning should be actually stopped or the plans revised. An example fo this recently. Someone looking to set up a restaurant. 1. it was identified that he did not have enough experience, 2. He did not fully understand all the issues necessary to run a restaurant 3. The assumption that he could get the funding, ( which in practice ) would be almost impossible. When we discussed the issues with him, he accepted the advice and decided to completely change his ambitions.
But with the right questions and guidance, a working plan can be created.
It takes the experience of someone who has started and developed businesses to understand the great range of issues to address, and, the right questions to ask. But when you actually develop and agree a working plan, it will give a business the best chance of being successful.
A Business Plan should include:
- Confirming the services provided. ( And are specific )
- Confirming the target prospects / markets ( their needs and profiles )
- Any market research data ( e.g. Google search stats)
- The business’s sales targets ( and timescales )
- Identify the marketing activity necessary to achieve the sales targets
- Identify the budget necessary to undertake the necessary activity
- Confirm the sources of the funds.
- A working financial review that summarises costs and planned sales / over the period (s)
- A cash flow forecast ( in come situations )
Need help to create a Business Plan for your Business ?
Email for a Business Idea Review (free). info@startupassist.uk
Or click here to order your Business Plan