The Definitive Guide to Writing a Business Plan by Alan Gleeson

Mistakes to Avoid5.

How do I Pitch a Plan?6.

The Marketing Plan7.

A to Z Guide of U.K. Start-up Resources8.

Key Business Plan Resources9.

Business Plan Pro 11.010.

About the Author

What is a Business Plan?

A business plan is not just a document. It is a holistic analysis of your company, theenvironment it operates in, and a route map to achieving success based on the resourcesavailable. Unfortunately, the image most of us have is of a 30-page bound document.While the business-planning process is in itself a very worthwhile pursuit, most business plansare produced for a specific purpose. The plan is used as a means to convey an idea with a viewto achieving a specific goal, e.g. securing funding. Hence, the plan needs to be tailored withthe audience in mind, and a good knowledge of their requirements will help shape a winningplan. For example, the requirements a Venture Capitalist will have when assessing a planseeking to secure a million-pound investment will differ considerably from those of a localbank manager who needs to see a plan presented in support of a small-loan application. Whilethe former will be primarily looking for capital growth, the latter will be more concerned withsecurity.

Why do I Need one?

The following list represents some of the key benefits of planning:1.

To plan for an uncertain future

Business planning is vital to help you manage your business more effectively. By committing your thoughts to a plan, you can understand your business better and also chart specificcourses of action that need to be taken to improve your business. A plan can also detailalternative future scenarios, set specific objectives and goals, and list the resources requiredto achieve these goals. In short, it can help ensure that you are prepared for all sorts ofeventualities.2.

To help grow your business

In an ideal world, all businesses would be self-financing in exploiting business opportunities. Inreality, few are afforded this luxury, and hence, will be required to secure externalinvestment. The production of a credible business plan is one of the primary requirements forany entrepreneur seeking investment to grow.3.

To commit to a particular course of action

A business plan can help a company assess future opportunities, choose one, and then committo a particular course of action. By committing to one opportunity, all other options areeffectively marginalised and the company is aligned to focus on key deliverables.

To manage cash flow

Careful management of cash flow is a fundamental requirement for all businesses. The reasonis quite simple—many businesses fail, not because they are unprofitable, but because theyultimately become insolvent (i.e., are unable to pay their debts as they fall due).5.

To ensure all bases are covered

When you start a new business, the temptation is to spend time on the idea and then react toevents as they come up rather than focusing on what is important. The very creation of abusiness plan ensures that you cover all the various bases when taking an idea from conceptionthrough to launch.As you’ll have garnered from the above, business planning is an essential activity, regardlessof the stage of business you’re at. The very process of producing a business plan enablesmanagement to give due consideration to the various factors creating the opportunity theyare seeking to explore. The resources required and the key drivers needed for success areidentified as well.