A business plan is a formal document that details the aims and goals of a business as accurately as possible and in the most structured way. It is usually created at the beginning of a new business to outline what exactly the business is, what the intentions are and how the owners are going to go about setting it up and making it successful. They can also be vital for the growth, development and running of an existing business, so are not necessarily only needed during the start up process. A business plan is mainly used to outline everything completely so everybody is clear where the business is heading and how it’s going to get there.
There are a number of reasons why a business plan may be needed, if you are looking for people to invest in your business you will need to show them a business plan in order for them to be sure your business is worth investing in. A plan will also be needed when applying for a loan from the bank, so they can be sure the business is well thought out and worthy of a loan.
Depending on what the business plan is for, it can be tailored to suit your needs. For example, a bank will be more interested in the financial side of the business, as well as your financial history, whereas potential investors will be more interested in the type of business and the team that are going to be running it. If you only want a business plan for yourself and the running of the business however, then things like background information and personal financial history will be unnecessary.
The layout of a business plan can vary, but generally speaking it should include a description of your business, the team involved, finances and financial analysis and projections for the future.
If you would like help with a business plan or would like some more advice tailored to your business then please do not hesitate to phone or email us, or alternatively, you can simply use the live chat link available.
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About The Author
MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.