Whether you’re selling in-store, or run an ecommerce business, a business plan serves as the cornerstone of success.
Writing a business plan that is considered and in-depth, is vital. Let us walk you through the essential steps of a business plan, equipping you with the tools to craft a strategic roadmap for your entrepreneurial journey.
Understand the purpose behind a business plan
Before diving into the intricacies of writing a business plan, it’s crucial to grasp its purpose. Essentially, a business plan serves as a roadmap that outlines your business objectives, strategies, and tactics for achieving success. It not only communicates your vision to potential investors and stakeholders but also provides a structured framework for guiding your day-to-day operations.
Start with market research
The foundation of any successful business plan lies in thorough market research.
- Analyse your target market, identifying customer demographics, preferences, and purchasing behaviours.
- Survey your current shoppers to understand where you can improve. Consider using promotional codes as an incentive for customers to complete your survey.
- Evaluate your competitors to gain insights into their strengths, weaknesses, and market positioning.
By understanding the market landscape, you can tailor your offerings and strategies to meet the needs of your audience effectively.
The structure of your business plan:
1. Executive summary
An executive summary is a concise overview of your business plan, providing key information and insights to give readers a quick understanding of the business concept, objectives, and strategy. What are your short and long-term goals? Be sure to include these in your executive summary.
Even though it is the first section of the business plan, it is typically written last to ensure it accurately reflects the entire content of the document. You may want to include a mission statement in your executive summary.
2. Company description
This is where you can delve into the nitty-gritty of your small business. Expand on market needs that your business will cater to, and your competitive advantage, including your unique selling proposition (USPs) that will differentiate you from your competitors.
3. Market analysis
The third section of your business plan should delve into how your business can thrive in a specific market. It encompasses an overview of your industry; target market; demographics; market trends; and customer pain points. Consider outlining how your business will capture the demands of your target market (this may reference your USP).
4. Organisation and management
Detail the organisational structure of your small biz, starting with the owners, and those in management roles. Expand on the responsibilities of everyone on your team, and outline every person’s role in your team. This ensures there is cohesion within your company, and everyone is across their responsibilities.
Are you the only one working in your small business? Ensure you note down your responsibilities here, enabling you to hold yourself accountable in your role.
5. Your products or services
Here you will provide a detailed description of products or services you offer, and the product lifecycle.
The product lifecycle refers to the stages a product goes through from its introduction to the market, through its growth and maturity, and eventually to its decline and discontinuation. Each phase requires different marketing, financial, and strategic approaches.
6. Marketing and sale strategy
A robust marketing and sales strategy is essential for reaching and engaging your target audience. Identify your marketing objectives, whether it’s building brand awareness, generating leads, or driving sales. Outline your promotional strategies, including digital marketing initiatives, social media campaigns, and traditional advertising channels. Incorporate metrics to measure the effectiveness of your marketing efforts and refine your approach accordingly. For your sales strategy, delve into the sales process, customer acquisition and retention strategies.
It’s essential you use social media marketing as a means to promote your brand and products.
7. Funding request (optional)
Are you seeking funding from external stakeholders? Then be sure to include a funding request, where you will explain the current and expected future funding requirements; a breakdown of what the funding will be allocated on; and your desired terms and future funding.
8. Financial projections
Include detailed financial statements like income and cash flow statements, and balance sheets. Provide a snapshot of your finances, including financial assumptions, project profits and losses, and your break-even analysis. You can also mention key financial milestones and metrics that will be of significance to your business’ success.
If you’ve included a funding request – be sure to highlight how your funding request will help meet your projections – encouraging investors to invest in your small biz.
Little Big Shop’s “Big” Plan simplifies how you do your finances, with our MYOB and Xero accounting integrations.
9. Appendix
In your appendix, include any documents or supplementary information, market research and legal documents.
Writing a comprehensive business plan is essential for turning your entrepreneurial vision into reality, guiding your business’s growth, and attracting investors. Use your business plan as a living document, continually refining it as your business evolves and new opportunities arise.
For more guidance on writing a business plan, check out these templates:
