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8 Key elements of a business plan you need to know

Debbie austin fcca explains the importance of business plans and what to include in yours..

Everyone wants the perfect business; a money making, well oiled machine that’s leading in the market. If only it were as easy as just wanting it!

Being a potential business owner, you will set goals around things like profitability, productivity, and growth (just to name a few). In order to reach these goals amidst the daily meetings, phone calls and e-mails, you’ll need to create an effective business plan.

Starting a business can be a very complex process. Having a plan is important to the success of your venture as it maps out all of the details surrounding your concept and strategy.

If you’ve already started up and your business is growing, congratulations! Reviewing the key elements of a business plan can help you avoid crisis situations. Remember, your document is at the core of all that you do, that's why we've written this post because it will  be a key facet to helping you achieve your goals .

What should a business plan include?

1. the executive summary, 2. a description of the business, 3. the market(s) the business will operate in, 4. a swot analysis.

5. Management team and personnel

6. The products or services offered

7. marketing.

8. A financial plan

The contents of a business plan

This is placed as number one on our list of components of a business plan , but it can easily be the final stage. That's because sometimes it's easiest to write your summary after you've covered all the other details.

A great summary is one of the key features of a business plan. It serves as an overview of your entire business and the elements surrounding it.

Be sure to outline succinctly the 5 "W"s (Who, What, Why, When, Where) as well as the mission statement . Think about why you started the business along with where you would like it to be in the future, how will you get there? Your mission statement is the start of creating a culture that people in your organisation will live and work by.

This section should contain details of things such as your goals and the customers you will service. What are the products and services you will offer to your customers? You'll need to provide an overview of them and how they will address customers' needs and wants?

You've come up with this great business idea , but how will it do in the market? Or, more importantly, what is the market for it? How well do you know the market? What does a typical buyer look like, what is their income level? Does the business have the hallmarks of disruptive innovation ?

This is the time to research and determine who your target market is and ask specific questions that relate to your product or service. Put you idea to the test. What have others done before you and what can you do differently and better? Analyse what information you've uncovered and outline it's potential impact in your plan.

Create a detailed list of your strengths, weaknesses, opportunities and threats. This needs to be done with an open and honest approach, keep emotions out of it, focus on being objective when analysing your business and those of your competitors.

Any strengths you uncover will represent internal, positive factors in your business that are within your control. Weaknesses are also internal, but are negative factors that need to be improved.

Both opportunities and threats are external factors. While opportunities will potentially positively impact on your business, threats represent negative factors beyond your control. For example, are there high barriers to entering the market? Does a competitor have the market cornered due to brand loyal customers? These could harm your enterprise, so you need to strategise for it in your plan.

5. The management team and personnel

Who will run the business, who are the directors in the business? What are the skills of the management team and how do their different responsibilities make maximum use of their abilities. What is the chain of command in terms of decision making?

Also use this section to identify how the management team, and taking on employees will help maximise strengths, while addressing identified weaknesses to help improve the business.

Finally, which of the UK's business structures will you choose to operate through?

• Limited company
• Partnership
• Limited liability partnership

In this section you need to detail what will be produced and how it will be sold. You should  explain how your product or service will meet a particular need in the marketplace, and how you'll get customers returning to make repeat purchases. Repeat custom is after all the lifeblood of many a good business.

Who will you rely on, in terms of suppliers, to help you assemble your products? What intellectual property, patents or copyright do you own, or might you be at risk of potentially infringing?

What is the branding to your business? What are the key messages you want to communicate with your target market and how will you go about reaching them? How will you achieve market share and at what cost in terms of your budget?

8. Let's talk money: A financial plan

Ideas are great, but how will you make them a reality and sustain a viable business. Creating a financial plan will give you the opportunity to address your financial concerns and talk money, think about start-up costs, financial projections , funding and investor pitches.

You'll need to list how much your start-up will cost, everything from stationary to leases should be outlined and balanced against your financial projections.

Don't fear change, your business plan isn't written in stone

It’s important to remember that your business plan isn’t written in stone. This is a document that you and your staff can improve and update as the business grows and changes. Your plan should be reviewed regularly.

Consider implementing a monthly review to track progress or make adjustments to your strategy. Accountability and motivation are key in making sure your goals are met, think about the people involved and what can you do to keep them inspired.

This post was created on 26/06/2018 and updated on 18/02/2022.

Please be aware that information provided by this blog is subject to regular legal and regulatory change. We recommend that you do not take any information held within our website or guides (eBooks) as a definitive guide to the law on the relevant matter being discussed. We suggest your course of action should be to seek legal or professional advice where necessary rather than relying on the content supplied by the author(s) of this blog.

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Main Components of a Business Plan

• Executive summary  This is your five-minute elevator pitch. It may include a table of contents, company background, market opportunity, management overviews, competitive advantages, and financial highlights. It’s probably easiest to write the detailed sections first and then extract the cream to create the executive summary. Try to keep it to just a couple of pages.  
• Business description and structure   This is where you explain why you're in business and what you're selling. If you sell products, describe your manufacturing process, availability of materials, how you handle inventory and fulfillment, and other operational details. If you provide services, describe them and their value proposition to customers. Include other details such as strategic relationships, administrative issues, intellectual property you may own, expenses, and the legal structure of your company.  
• Market research and strategies  Spell out your market analysis and describe your marketing strategy, including sales forecasts, deadlines and milestones, advertising, public relations and how you stack up against your competition. If you can’t produce a lot of data analysis, you can provide testimonials from existing customers.  
• Management and personnel   Provide bios of your company executives and managers and explain how their expertise will help you meet business goals. Investors need to evaluate risk, and often, a management team with lots of experience may lower perceived risk.  
• Financial documents  This is where you provide the numbers that back up everything you described in your organizational and marketing sections. Include conservative projections of your profit and loss statements, balance sheet, and your cash flow statements for the next three years. These are forward-looking projections, not your current accounting outputs.
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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, how often should a business plan be updated, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

A business plan is a document that details a company's goals and how it intends to achieve them. Business plans can be of benefit to both startups and well-established companies. For startups, a business plan can be essential for winning over potential lenders and investors. Established businesses can find one useful for staying on track and not losing sight of their goals. This article explains what an effective business plan needs to include and how to write one.

Key Takeaways

• A business plan is a document describing a company's business activities and how it plans to achieve its goals.
• Startup companies use business plans to get off the ground and attract outside investors.
• For established companies, a business plan can help keep the executive team focused on and working toward the company's short- and long-term objectives.
• There is no single format that a business plan must follow, but there are certain key elements that most companies will want to include.

Investopedia / Ryan Oakley

Any new business should have a business plan in place prior to beginning operations. In fact, banks and venture capital firms often want to see a business plan before they'll consider making a loan or providing capital to new businesses.

Even if a business isn't looking to raise additional money, a business plan can help it focus on its goals. A 2017 Harvard Business Review article reported that, "Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical nonplanning entrepreneurs."

Ideally, a business plan should be reviewed and updated periodically to reflect any goals that have been achieved or that may have changed. An established business that has decided to move in a new direction might create an entirely new business plan for itself.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. These include being able to think through ideas before investing too much money in them and highlighting any potential obstacles to success. A company might also share its business plan with trusted outsiders to get their objective feedback. In addition, a business plan can help keep a company's executive team on the same page about strategic action items and priorities.

Business plans, even among competitors in the same industry, are rarely identical. However, they often have some of the same basic elements, as we describe below.

While it's a good idea to provide as much detail as necessary, it's also important that a business plan be concise enough to hold a reader's attention to the end.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, it's best to fit the basic information into a 15- to 25-page document. Other crucial elements that take up a lot of space—such as applications for patents—can be referenced in the main document and attached as appendices.

These are some of the most common elements in many business plans:

• Executive summary: This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services: Here, the company should describe the products and services it offers or plans to introduce. That might include details on pricing, product lifespan, and unique benefits to the consumer. Other factors that could go into this section include production and manufacturing processes, any relevant patents the company may have, as well as proprietary technology . Information about research and development (R&D) can also be included here.
• Market analysis: A company needs to have a good handle on the current state of its industry and the existing competition. This section should explain where the company fits in, what types of customers it plans to target, and how easy or difficult it may be to take market share from incumbents.
• Marketing strategy: This section can describe how the company plans to attract and keep customers, including any anticipated advertising and marketing campaigns. It should also describe the distribution channel or channels it will use to get its products or services to consumers.
• Financial plans and projections: Established businesses can include financial statements, balance sheets, and other relevant financial information. New businesses can provide financial targets and estimates for the first few years. Your plan might also include any funding requests you're making.

The best business plans aren't generic ones created from easily accessed templates. A company should aim to entice readers with a plan that demonstrates its uniqueness and potential for success.

2 Types of Business Plans

Business plans can take many forms, but they are sometimes divided into two basic categories: traditional and lean startup. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These plans tend to be much longer than lean startup plans and contain considerably more detail. As a result they require more work on the part of the business, but they can also be more persuasive (and reassuring) to potential investors.
• Lean startup business plans : These use an abbreviated structure that highlights key elements. These business plans are short—as short as one page—and provide only the most basic detail. If a company wants to use this kind of plan, it should be prepared to provide more detail if an investor or a lender requests it.

Why Do Business Plans Fail?

A business plan is not a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections to begin with. Markets and the overall economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All of this calls for building some flexibility into your plan, so you can pivot to a new course if needed.

How frequently a business plan needs to be revised will depend on the nature of the business. A well-established business might want to review its plan once a year and make changes if necessary. A new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is an option when a company prefers to give a quick explanation of its business. For example, a brand-new company may feel that it doesn't have a lot of information to provide yet.

Sections can include: a value proposition ; the company's major activities and advantages; resources such as staff, intellectual property, and capital; a list of partnerships; customer segments; and revenue sources.

A business plan can be useful to companies of all kinds. But as a company grows and the world around it changes, so too should its business plan. So don't think of your business plan as carved in granite but as a living document designed to evolve with your business.

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

U.S. Small Business Administration. " Write Your Business Plan ."

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Basic Elements of a Business Plan

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Business plans are essential to small businesses. They provide you with direction, help you stay focused on key activities and are required when seeking investment or finance.

At their core, business plans have 5 basic pieces of information. They include a description of your business, an analysis of your competitive environment, a marketing plan, a section on HR (people requirements) and key financial information.

The following is an explanation of the 5 key elements to a business plan.

1. Your business description

Your business description should give a brief, simple explanation of your business. Don’t go into too much information, as those reading it will either be short on time or have little understanding of your specific business.

The goal with your business plan is to be pragmatic, so include what the business is, the products or service you are (or will) provide and who your target audience is.

2. Your competition

Are your competitors someone in the same shopping strip or centre, or someone else local? Is your competition not defined by geographic location? Is the focus more on industry segment, or product/service? Is your business online, competing with others in this space?

The goal of defining your competition is as much for you as anyone reading your business plan. Do your ‘due diligence’ and thoroughly research your market. Try to determine who are the most successful players in your space and identify what makes them a success (e.g. product offering, best pricing, superior service). Once you have this information you then need to assess how you can beat them, however, it’s important to be realistic.

If they are a success because they have 20,000 products, don’t say you can beat them by having 21,000 products. The same with price. If you’re only focused on being the cheapest, then the person who’s willing to drop their price further will win. This ends up a race to the bottom and is an unsustainable business strategy.

Additionally, make sure you have ‘best case’ and ‘worse case’ scenarios of your modeling. Most small businesses overestimate their impact and projections in the short term, which is why they don’t survive long term.

3. Your marketing

Unless you have experience with marketing, this one may be a little bit hard. The first thing you need to do with your marketing is develop a ‘positioning statement’. A Positioning Statement is an organisational statement that defines the benefit of your product/service to your target customer and states how you’re different from your competitors. Once you have this statement, you can then start working on your marketing strategy.

Your marketing strategy should focus on the channels that are right for you. Most will include a website. If you’re in the consumer space, you may also focus on social media channels such as Facebook, Instagram, Twitter and Google+. If you’re in the B2B space, you may focus your social media activity around LinkedIn. You may also want to consider PPC (Pay Per Click) advertising, which is available on most online and digital channels.

The most important considerations with a marketing plan are knowing where your market is, knowing how to access them, and knowing what will create a ‘call to action.’

4. Your people

Does your business have face-to-face engagement with customers, or are your relationships digital? Do you currently have a team of people in place? If so, who are they, and what skills and experience do they bring to the table. If not, what people and skills do you need and for what roles. Most businesses still ultimately rely on people to be successful. Make sure you have the right people in the right roles.

With the ‘people’ section of your business plan, it’s helpful to create an organisational chart that includes roles and responsibilities. This organisational chart should also identify the people gaps that you may need to fill.

From an investor’s perspective, they want to see that you have your team in place and that they have the relevant experience to make your business a success.

5. Your Financial Data

This is where it’s important to have some basic bookkeeping and accounting skills. If you don’t have them, talk to Bizally for assistance.

Your business plans need to include a balance sheet (this outlines your current financial position in a universally accepted format), and your current profit and loss statement (also in a universally accepted format. Again, Bizally can help). Your financials should also include your income sources and costs (such as wages, rent, and other costs).

If you’re a start-up, your business plan should include start-up costs (such as plant, business registration, fit out ETC), at least the first year’s financial statements and a cash flow budget. The purpose of these figures is to demonstrate that you know where you’re going and how you’re going to get there. Depending on your sector and offer, try to create realistic cash flow projections over at least a 3 to 5 year period. This helps both investors and those providing finance that you have a strategy going forward.

‘I’m not confident in creating a business plan without help.’

If you’re starting a new business or even if you have been in business for some time, some of these items may be a little outside of your skill set and knowledge. That is where the help of an organisation such as Bizally can be invaluable. Bizally can demystify the whole process and help you with specific areas, such as projections and cash flow modeling, as well as profit and loss and balance sheets. Simply contact Bizally today and arrange a discussion.

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10 Important elements of a good business plan

Everybody plans before doing something big. don’t you think so?  So, why not consider a business plan ? Just like on a road trip, a map is needed. Likewise, every start-up business or a full fledged running business needs a direction. This way you don’t have to sit back and let the waves rock your boat. We will discuss some key elements to pay attention to that we might miss when we are in planning mode no matter what stage your business is at. Find here the key elements of a business plan to consider when creating a business plan .

Also you can use this business plan and financial plan template to start writing your business plan

1. Executive Summary

The executive summary of your business plan should always be the last topic written in your plan, and it appears at the beginning of the paper. As the word summary implies, it should cover everything important to the one who is reading it; be they a lender, investor or financier. An executive summary is mainly highlighting the points that need to be discussed or known in order to make the favorable decision the reader is being asked to make.

A compellingly good summary is a summary that reveals the mission statement of the company, with a brief discussion of its services and products. The WHY question can be answered in the summary for the start-up business or the relevant experience of the entrepreneur can be added.

2. Company Description

The next thing that interests the reader in the business plan is the introduction of your company. It should have complete information about what the company provides or will be providing, its products and services, its targets or goals and the audience, prospects and customers it serves already or plans to serve. This description will also help the reader to find out why your business is different or differs from the competition that will help you cater the target audience.

3. Market Analysis

Your market analysis should be based on logical research or findings. Ideally, the market analysis shows if you know what are the trending ins and outs in that certain industry and the particular market you intend to enter. In this section when you discuss the data and the statistics, make sure you have coloured graphs, spreadsheets, and histograms to demonstrate your insights and the future goals of where the company will be and where it stands in the market. In addition, the details about the customers you will be marketing to need to also be shown, provided with the details of their income levels.

4. Competitive Analysis

To make your business plan a good one try to add as much clear and honest information you can in comparison with your direct and indirect competitors . Give the reader a clear picture to show how you can stack up against the competition, even when you know the strengths and weaknesses of the competitors. In addition, if at any point you think there could be possibilities, for example, of high outspoken costs that may prevent you from leaping into the market then it is better you say so in your business plan but this information will be revealed when you complete the competitive market analysis .

5. Management Positions and Business Structure

Create a clear outline of factors that influence your corporate culture. Show the management positions, who reports to whom, who holds each position and the job descriptions.  Moreover, do not forget to mention how your business will operate legally. Will it be a partnership, a sole proprietorship or a different ownership business structure?

6. Products and Services Breakdown

Give an overview of what products and services your business provides, incorporate facts and extra information as available.

By this time, the reader should have a pretty decent knowledge of what you are planning to make and sell, the life of your products and their need.

Another good idea is to mention suppliers too. List the cost of production and how much financial backing you hope to secure and a list of related copyrights and patents can come in handy as well.

7. Marketing Plan

What is your main aim for this business plan? Outline your plan for marketing and promotions. You could use this marketing plan template . Describe how your audience will hear about, learn about and decide to take the next step to buy your product or service. Also outline the budget required for these strategies.

8. Sales Strategy

The most important question is to ask yourself: How will I sell my products? This answer is discussed with the sales strategy you plan. Be as precise as possible. Add numbers. How many agents will you hire? How?  Add specific sales targets. Will you sell online, will you use sales reps?

If you are interested in getting funds devote an entire section to explain the amount of money you will need, and how you plan to put to use that capital. Even if there is need of extra money in the future in order to complete a particular project be explicit in explaining that as well. Here you can find a financial business plan .

10. Financial Projections

The last final section, you will reveal your financial goals and potentials based on the market research you completed. This section will have a report of your expected revenue for the coming year, also the annual anticipated earnings for the next five years.

Moreover, if there’s a need to apply for any loan, even a personal loan, you can add an additional section or an appendix that delivers additional fiscal information.

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What Are the Key Elements of a Business Plan?

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Final Summary for a Marketing Plan

A financial plan vs. a pro-forma cash flow budget, what is the overall purpose of a business plan.

• What Are the Basic Components of a Business Plan?
• How to Compose a Small Business Plan

The key elements of a business plan are much the same, whether for a large business or a small business. This doesn't mean your business plan must be as thick as that of a Fortune 500 company, but it should include the same elements of a business plan found in business giants such as Amazon and Apple.

Executive Summary

An executive summary of your business plan provides the reader with a snapshot of your company profile and goals, according to the Small Business Administration . It's often the most neglected element of the business plan, but it may be the most important, because it tells investors why your business will be successful in very few words.

It should include a mission statement, a brief history of your business, and the highlights of your company's growth, your product or service and a summary of future plans. It also should explain why you are seeking financing and information about your banking and currency investors.

Product Description

The description of your product or service is one of the biggest components of a business plan. It begins with the way your product or service affects your customers. This description includes details concerning the product life cycle, any intellectual property issues, and any research and development activities planned. Include mention of any patents or proprietary components to your product (or service), as that is your moat.

Market Analysis

Market analysis describes your industry, gives information about the target market for your product or service and describes how your product or service will meet the needs of the target market. It discusses the size of the target market, the market share you hope to gain, the pricing of your product or service and your projected gross margin.

It discusses your competitors – who they are what part of the market they hold and their weaknesses and strengths. This section also discusses the barriers to your entry into the market and whether or not there are regulatory constraints that will impede your entry into the market.

Company Information

The section on your company should describe what you do and what needs your company can fulfill within the marketplace. This section also explains how your company's product or services specifically satisfy these needs. This section also should include a list of your customers and explain why your business will be a product or service will be successful.

Company Organization

The organization of your company is critical to investors who will want to know if they are lending to a corporation, a partnership or a sole proprietors. Regardless of your company's organization, lenders will want to know who is in charge what experience they have in this business, the extent of their ownership, and their record of accomplishment.

Each member of management should provide a resume, which may be included in an appendix to the business plan, that includes unique experience, past record of accomplishment, any industry recognition or community involvement, how long they have been involved with your company, and their salary. The names of the members of the Board of Directors along with their position on the board, the extent of their involvement with your company, their general background, and any contribution to the company's success should be discussed.

Marketing and Sales

The marketing and sales element of the business plan should discuss your business's marketing penetration strategy, a strategy for growing the business once market penetration has been achieved, the subsequent channels of distribution and a communications strategy suitable for reaching your customers. This also should include an overall sales strategy that outlines your selling activities.

Business Financials

You'll have to provide complete financial information as part of your business plan, says Entrepreneur . This is particularly important if you are making a request for funding. The financial data will include both historical information that is company income statements balance sheets and cash flows for the last three to five years. This section also will include financial projections on the impact of the new product the new service or the cash infusion.

Remember to format your business plan sections clearly and carefully. Presentation is important when showing your business plan to prospective business partners and investors.

• U.S. Small Business Administration: The Essential Elements of a Good Business Plan
• Entrepreneur: Elements of a Business Plan

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• 1 How to Write a Comprehensive Business Plan
• 2 How to Write a Business Synopsis
• 3 6 Types of Business Plans
• 4 How to Write Your Business Proposal

6 Key Elements of a Business Plan

As an entrepreneur starting a business, or even planning a scale-up, a business plan is a very important part of the process. This strategic tool helps define your short and long-term goals while providing a blueprint for your next steps.

Most business plans are developed during the first stages of a start-up, but that’s not to say that they aren’t important when you enter the growing phase of your business.

Your business plan is not a 'set it & forget it' document. As your venture develops and grows, revisiting your plan will be crucial to measuring your success and to continue supporting your journey during a new set of challenges.

What is a business plan?

A business plan is a document that defines the goals of your business and how they will be achieved. It is an essential resource that provides strategic direction for your business.

When putting your business plan together you should ensure that you address these 6 key areas:

• Your executive summary
• The vision statement and goal overview of your business
• Target audience and competitor research
• Your products and services
• Business structure and operations
• Your financial plan

#1 The Executive Summary

Your executive summary briefly outlines the main points of your business plan and provides a glimpse of what your company does and how it operates.

It should include your mission statement which is a short description (1-2 sentences) describing your company, its purpose, and its values.

Remembering to keep your executive summary clear and concise, think about:

• Why you’re in business
• What services and products you offer
• Who your customers are
• How you’re different from your competitors
• What role you and your team will have
• What your goals are and how you’ll reach them
• Key relationships and how they will be maintained

Don’t be afraid to brainstorm with others connected to your business. This could be individuals directly involved such as employees, investors, or business partners.

Another option is discussing your executive summary and mission statement with those who play an external support role in your business such as your advisor or accountant.

Not only will they have knowledge of your venture, but they also have strategic planning experience. This will help reveal the strengths and weaknesses in your statement, as well as identify things you may have missed.

#2 Vision Statement and Goal Overview

You should have a section of your business plan dedicated to the future aspirations of your business. Your vision statement will articulate what you want to achieve and in turn provide a common direction for the entire team.

It’s important to keep your goals S.M.A.R.T (specific, measurable, attainable, relevant, time-based).

Five questions to ask about your goals:

• Are they clear and specific?
• How will the goals be evaluated?
• Is the goal 100% achievable?
• How will the goal improve the business?
• Do your goals have due dates? 

#3 Target Audience and Competitor Research

In order to sell your product or service, you need to define your target audience. A target audience is a group of people you have identified as potential customers.

To help determine your target audience you will generally look at demographic traits such as:

You’ll then look at your product or service and the specific problem it solves. This, combined with the demographic data will help you fine tune the details surrounding your defined audience.

Defining your target audience will help you plan and execute your marketing strategy in the most efficient and effective way.

Once you've identified who you're selling to, research your market and identify your competitors. Evaluate how they promote their product or service as this will give you a better understanding of the overall market, allow you to identify any gaps, and help you develop or improve your business's strategy.

SWOT Analysis

As an additional project, it would be a good idea to perform and SWOT analysis and include this in your business plan. This detailed list of your strengths, weaknesses, opportunities and threats will give you further perspective of both your business and your competitors.

#4 Products and Services

This section of your business plan will describe what your business offers to its consumers.

Although descriptions of each product or service is needed, don’t over complicate it. Keep wording easy to understand and ensure you’re including how your product or service differs from the competition. 

If you own or have applied for any of the following, you should also include these in this section:

#5  business structure and operations.

The business structure you choose will have significant implications on the tax you pay and your liability.

There are four main types of business structures in the UK:

• Sole Trader - business is run and owned by one individual
• Partnership - business is owned and managed by two or more parties
• Limited Liability Partnership - business structure where liabilities are limited to the amount each individual has invested in the business
• Limited Company - business is separate from the individual and run as its own legal entity

Operations include the physical necessities required to run your business, businesses typically engage in these activities on a daily basis and they are essential to providing the highest quality product or service.

Four key areas of business operations you should address:

• Process - systems and procedures you will have in place
• Location - where you will do business (bricks and mortar/online)
• Team - who will be doing the work
• Equipment - the tools you will use

#6  Financial plan

A financial plan is not just where all the numbers come in, it’s the moment where you start turning your ideas into a reality.

In your financial plan, you’ll want to consider:

• Start-up or expansion costs
• Various business expenses
• Funding requirements
• Financial projections

A good plan of action would be to sit down and create a list that outlines what costs will be associated with your business. 

For those revisiting their business plan and making adjustments during a phase of growth, these may be familiar things like lease fees, but at a higher amount. It could also be completely new costs or funding needs that are required to expand the business.

If you’re in the start-up stage, you will have to build your list from scratch as you won’t have the same historical financial information as an established business.

This is a list of some of the common businesses expenses to help you get started: 

• Marketing, sales and advertising costs
• Office supplies
• Lease payments
• Licenses and permits
• Staff and employment
• Professional fees

The importance of the expert second opinion

Whether you’re in the start-up or growth stage, a business plan will play an important role in the success of your venture.

Bringing an expert on board will help build a solid foundation and uncover challenges you may face moving forward.

Working with your accountant will:

• Provide a second opinion backed by experience
• Offer constructive feedback on the key areas of your business plan
• Give you advice on the legal structure of your business and the financial implications of each
• Help make important decisions and offer other beneficial elements you may want to consider

Working with DSA Prospect

The DSA team have worked with clients across all industries, helping them get their business off the ground and prepare for the challenges ahead.

We have a wealth of knowledge that can help you develop a business plan that will guide you through your business journey, as well as a dedicated team here to support your individual needs and vision.

Title: How to write a business plan: 6 key components to a good plan

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