Steps to Writing a Successful Small Business Plan

Creating a good business plan is an essential step for any small business. A good business plan will help to clarify your objectives and the direction of your business, and it could also determine how much funding you receive from investors.

But how exactly do you go about creating your plan, and what should it include?

All plans are different, but they tend to contain similar information. Here is a guide to how to write a small business plan so you can create yours in no time and then use it as a guide as you start to grow your business.

Step 1: Create a Mission Statement

The mission statement is a good starting point for your business plan. This is simply a statement that clarifies why your business exists. It provides a clear overview of your business, what it does and why it is different.

Creating your mission statement may be easy, or it may be a challenge. It's important to clarify it not just for potential investors, but also for yourself. It will help when you come across a problem later on because you can refer back to the mission statement and let this guide your decisions.

Step 2: Write Down Your Strengths and Weaknesses

Next, write down the strengths and weaknesses of your business. Perhaps you have a unique product to bring to market (strength), but it is more expensive than your competitors' products (weakness).

Be clear on these, and don't try and overstate your strengths and underplay your weaknesses. This is one of the most common mistakes when creating a business plan. Be honest, be detailed and be critical.

Step 3: List Your Product, Market and Competitors

Provide a clear guide to your products or services, including the prices and full details. Also clarify exactly who you are targeting with these products. Again, if you don't have a clear idea of this, this is the time to find out.

Also provide an overview of your market, including the size of the market and your competitors. Also make it clear how your prices compare to the competition.

Step 4: Focus on the People

Don't forget to include details about the most important people involved in your business, especially those holding management positions. People matter, and you don't want your business to be faceless. Investors often invest in the people as much as the products, so share information about the roles and their experiences.

Step 5: Clarify Your Goals

This is the time to set down some clear objectives for your business. Decide how you are going to work on your weaknesses as well as how you will get the most out of your strengths.

Spend time planning for how you will deal with threats as well as how you will make the most from the opportunities presented to you. Don't be too negative here, but do be realistic. It's all about finding the right balance.

Also include some clear sales objectives and make it clear what you want your business to achieve. This will help you in the future to work out whether the business is successful or not.

Step 6: Work Out a Budget

This is the section where you include details about your financials, including projected sales, costs and investment sources. If you want people to invest, you will also want to provide predictions for your likely returns.

Be smart with your budget and make sure you review your expenses on a regular basis. There are many factors to consider, and this is an area where an accountant can really help.

Step 7: Write It Down

When you have collected all of the information, write it all down in a professional format. You may want to get it designed professionally, and don't be afraid to use graphics and charts if needed.

Update Your Business Plan Regularly

Once you have created your business plan, don't put it in a drawer and forget about it. This should be a document that you refer to regularly and update over time. So set aside some time each month to review it, and use it to track your progress.

We Can Help

We provide assistance with creating business plans for businesses of all sizes, and we would be happy to help you with yours. We can help you to avoid the pitfalls and create a plan that you can use for many years to come, and we'll ensure you have an effective plan that will get your small business off to a great start.

We also provide business start-up support in a number of areas, so we would be happy to hear from you if you need any help when getting started.

You can find more information at the Gov.uk website here. You'll also find some business plan templates here that you can use as well as some business plan examples for inspiration.