Writing your Business Plan
By Yvonne Ruke Akpoveta, OliveBlue Business Consultancy

There are generally four categories of people with regards to how a business plan is viewed:

• Those who don't know they need to prepare a business plan prior to starting a business
• Those who believe a business plan is not necessary to start a business
• Those who write a business plan for the sake of it and don't end up using it
• And there are those who know the value of a business plan and make use of it once written

Which category do you fall into? As you read the following sections, we'll look at what a business plan is, why one is required and how to go about writing one.

If I had to say in a few words what a business plan is, it would be "It is the blueprint towards a successful business". Before a builder sets about building a house, he needs to have a set of architectural plans (blueprint). This guides and instructs him in the building of the house, without which sooner or later he is most likely to run into problems along the way such as; incorrect dimensions, foundations not deep enough to support the structure of the building, delayed completion. In other words, complete chaos! The same thing goes for someone who starts a business without a business plan, which could lead to; insufficient understanding of the service/product market, insufficient funds to start and run the business, lack of clients and much more. These are issues that could have been avoided earlier, or you would have been adequately prepared to deal with, if a business plan had been written.

Essentially a business plan is the detailed plan for your business that should be written for the purpose of:

• Enabling you to plan the start and growth of the business.
• Benchmarking, to measure your efforts and ensure your business is on track to achieve set objectives.
• Raising finances from external sources.

Your business plan should be well thought through, finely written and contain all information pertinent to the running and success of your business. When approaching external sources for the purpose of raising money, your business plan is your written sales pitch. It should show a good return on investment, show there is a market for the product or service and inspire confidence in the lender that you are able to manage the business either by prior experience or education.

When it comes to the question of who should write the business plan? YOU should write your business plan (or a business partner involved in the running of the business), as you will essentially have more knowledge about the vision for the business, and in the process of writing the business plan you will learn the what, why, and how of the business. Some people find it difficult to set out their ideas on paper; hence the availability of business advisers, coaches and consultants who can work with YOU in writing an effective plan. As they have more experience than someone who is new to the concept of 'Business Plan'. Do not someone who is not going to be involved in the business to solely write your plan without you being involved.

The length of a business plan will vary depending on its purpose. For Example, If the business plan is for the intention of raising funds to finance the business, the more money you need to raise (<£20,000), the longer the length of your plan should be to show a more detailed plan, analysis and strategy to convince the potential financiers of the viability of the business. And the less money you need to raise the shorter the length. The average length of a good and standard business plan should be 13 pages and will include all the sections mentioned below.

Two of the first phases that should occur prior writing your business plan are; develop your business idea and undertake preliminary research on the market for your business. As the work carried out at these stages will form a major part of your business plan. Please refer to two separate articles that have been written on 'Developing your Business Idea' & 'Research for your business'.

Your business plan at the most basic, should include the following sections:

Executive Summary - This is usually written last to summarise the entire business plan. It should give an overview of each section of the plan and contain vital information about the business such as the main purpose of the business, how much is required to start the business.

Management - Who will be managing the business and their management responsibility? State qualifications and experience, and where there is a skill or experience shortage, mention how this will be filled.

Purpose/Background of Business - Is it going to be profit or not-for-profit venture? Why has it been set up? What need is it going to meet? When is it going to start trading? Or if an existing business, when did it start trading and a brief summary of performance to date.

Business Objectives - These are the objectives of the business, what it will be working towards achieving. Your objectives can be grouped into short, medium and long term. Always endeavour to apply the SMART rule; Specific, Measurable, Achievable, Realistic and Time-framed

Product/Service - Describe the products or services you will be offering in more detail. What is the USP (Unique Selling Point/Proposition)? Mention any patents or trademarks that exist or have been applied for. Also mention complementary products that could be offered.

Market - The past, present and future of the market you are entering or already in. This section should contain a SWOT analysis (Strength, Weaknesses, Opportunities & Threats). As well as how business will fit into the current or future market and what the major drivers for the market are.

Competitor Analysis - This should describe who your competitors are, both direct and indirect. What they offer and how you plan on competing against them or even working with them.

Marketing Plan - having worked out your marketing strategy, this section will describe your plan to market your business. It will include the 4Ps; Pricing, Promotion, Product/Packaging and Place (distribution).

Operational Plan - Where you will be operating from, machinery/equipment required (will it be bought or leased), staffing requirements and logistics.

Financial Analysis - This should contain the; financial model, cash flow forecast and profit & loss forecast. Assumptions that have been made in reaching figures and even the risks that could affect figures. This ensures and also shows the reader that you have thoroughly worked out your figures and are prepared for any eventualities

Above is a bird's eye view of what your business plan should contain. Depending on the type of business and for what the purpose of the business plan is being written, it's content and structure will differ.

Remember that you can approach a professional to either work with you from the start to completion in writing your business plan or you could use a couple of other approaches:

• One approach is to use a professional at the start to get some guidance & direction, and then again at the end to appraise the plan before implementation or submission for raising finance.
• Alternatively you could write it yourself based on your existing knowledge, and then get the plan appraised by a professional, and refined before implementation or submission for raising finance.

If you fall into the category that writes a business plan just for the sake of doing so, maybe because; it is required to use in raising finances or you constantly hear the word branded about, therefore you think you might as well have one done. This will be a waste of valuable time and even money if it is not actually used for implementing and managing the business. Your business plan is there to ensure you build a solid foundation for your business that is able to withstand threats, grows, is profitable and most importantly, is fulfilling.