Why have a business plan?

A business plan should help you answer some fundamental questions about your business idea, such as who, where, when and how. More concretely, this means: Who is starting the company? Where will the company be based? What is the time scale for setting up the company? How will you accomplish all this – using what resources? Your business plan will cover all aspects of your project and should include:

• A description of the company, its managers and products
• A market analysis of potential customers and competitors
• The marketing plan
• Infrastructure (production and management) and technology
• Financial management
• Financial and operating plans
• A risk assessment

Some tips

Here are some basic guidelines to follow when drawing up your business plan:

• Be clear: Get your reader’s attention by keeping it simple and precise, making sure the key points of your project stand out.
• Be realistic: Clearly state both the strengths and potential risks of your strategy. And your strategy should give your company a competitive edge.
• Remember how important first impressions are: Your plan is your calling card – make sure it is interesting and thorough.

Your business plan and you

With your business plan in hand, financiers and other outside partners will see that:

• you know your business;
• you know the strengths of your business idea while recognizing the risks, and you are realistic about your chances;
• your financing plan is thorough and your profit outlook is feasible; and
• you have the background and skills needed to manage the company.

You can always get help from an outside consultant. They will make sure you are asking the right questions – and they’ll help you find the answers.