A business plan is one of the most important documents for any company. It is a detailed report of what the business is, what it can provide and what the future looks like. The plan will need to provide a clear understanding of the strategy that will be adopted by the business and what its key goals are to achieve success both in the short and long term.
There are 3 very important questions that the business plan should address:
- How will your business make money?
- How do you plan to fulfil your growth plans?
- How do you anticipate the business looking in 1 year, 3 years and 5 years?
If nothing else the most basic of business plans should explain what the business will do, how it will achieve success (marketing and operational needs), the strategies that need to be undertaken and financial projections (to include both income and expenditure).
Some other very important questions to answer are all focussed on your competitors:
- Who are your competitors?
- What are they doing different to you?
- What are you doing different to them?
- How can you obtain a better competitive advantage?
The business plan needs to provide clarity and focus. Other key areas of importance include potential development plans, identification of priorities and exploration of opportunities that can bring future growth potential.
At some stage the business is also likely to require some funding. They will need to approach their bank or an independent lender whose first question will be to ask for a copy of the business plan. The financial planning element will need to be detailed as it will be thoroughly interrogated to ensure that any potential lending will be a sensible investment.
To summarise there are 7 key elements that should make up a business plan:
- Executive summary
- Business description and overview
- Marketing strategies
- Competitor analysis
- Development plan for products and/or services
- Operations and management
- Financial information (planning and projections)
If you have a question or need help with developing a business plan, please feel free to call us on 01993 706403 or e-mail hello@ngifranchisefunding.co.uk