What should my Business Plan Include?

Let’s start with a question!  Why are you writing a Business Plan?  Don’t get me wrong, I think every business needs one, but why particularly are you writing yours? And why now?  You see, what you put into a business plan will depend very much on the reason you are writing the plan.  If you are preparing the plan to get funding or investment or to give to an outside person who you hope will become a stakeholder in your business, you will need to tailor your plan towards that person or organisation.  In fact, some lenders will provide a form for you to fill in, and the format is therefore proscribed.  

The reason I believe every business should have a Business Plan is that it provides a framework for the business to plan, goals to strive for and the perfect place for the business owner and their senior management team to think about the business.  Once you have written the Business Plan, don’t just shove the paper in a drawer to be dusted off next year or file the pdf in some inaccessible Google Drive but show some pride in the process of planning.  The Business Plan should be on show, central to the planning and measurements of success and key to any decisions made. 

In my ideal version of the Business Plan that is structured to provide a clear picture of the business and its potential the following elements take centre stage.

Vision, Mission & Culture

• Vision and Purpose
  • What is the company in business to do, what does the future look like and what are the values of the company?  What is the Big Hairy Audacious Goal that the company is striving towards?
• Mission
  • How is the business going to get to its BHAG?  What are you choosing to do in the world to bring it about?
• Culture
  • What does the internal business look like, who are your team and your stakeholders, how do they communicate, work together and cooperate and what are the internal rules by which they govern the business.

SWOT

• Strengths
  These are the internal strengths of the business and the team within the business. Most people struggle to list their own strengths, so start with what the team are good at. 
• Weaknesses
  What are the internal weaknesses of the business? Be candid and talk about mitigating any perceived problem areas. 
• Opportunity
  What are the external opportunities that exist in your marketplace and how will you capitalise on them?
• Threats
  What are the external threats to the business?  What could de-rail the business that you have little or no control over?  Government regulation is a good one to start with, but think outside of the box, what is the worst that could happen, and how will you mitigate or avoid the problems that would cause.  Think E-cigarettes and the effect on the tobacco industry.  

Execution - Marketing Plan and Sales Plan

A detailed marketing and sales plan on how you are going to reach your targets.  Things to consider are:

• Market Research
• Marketing goals
• Test and Measure metrics
• Client lifetime value
• Budget and Acquisition investment
• Ideal Customers
• Strategies and tactics
• Sales Process
• Ladder of loyalty

Financial Plan

Now lets get down to the numbers – these are the projection of the future, what you will need to measure your success and a material part of understanding the interconnected workings of the business.   The finance plan will also test the viability of your business and be vital to securing any finance or investment.  

Make sure you include and key assumptions and if money and numbers are not your thing, make sure that this part of the plan is drafted by someone who does understand accounting and business finance, or at the very least make sure that someone you trust in this sphere has sense checked your numbers.  

If you are applying for finance, ensure that you include a paragraph on how you are going to be using the financial aid.  

Top line Plan

• What does your business look like when it is finished
• Key members 
• 5 year goals
• 12 months plan 

90 day action Plan 

In more detail, what are you going to be doing in the next 13 weeks to move towards your annual and long term goals?

Wow – what a lot of thinking you are going to have to do!  You probably already have all the answers rattling around in your brain, you can see what you want to achieve so writing it down should be easy!   In my experience, it is not as easy as it should be and can be time consuming but with support and a clear goal to achieve, you will come out with clarity around your business that will drive you forward and enable you to create the success you deserve.