Are you starting a new business? One of the most important steps you need to take when launching a new enterprise is to create a comprehensive business plan. But what exactly should be included in this plan? In this guide, Carrie Taylor-Mell, Team Manager for Small Business Banking at HSBC UK, and Stefan Johnson, International Trade Finance Manager for HSBC UK, share their expert insights on what makes a robust business plan and why it is important.
Why Do You Need a Business Plan?
A business plan is a critical tool to help you organize your thoughts and ideas. It forces you to evaluate the different aspects of your business, including your value proposition, marketing assumptions, operational plans, financial plans, and staffing plans. By taking a step back and looking at the bigger picture, you can identify gaps or challenges that might impact your success. A well-thought-out business plan is also essential for tracking progress, setting goals, and laying a solid foundation for your business.
A business plan is not just for internal use, however. Investors and potential partners will want to see a copy of your business plan to evaluate the viability of your business. Therefore, it’s important to make sure that your plan is professional, concise, and well-organized.
What Makes a Good Business Plan?
Below are some key tips that can help you create an effective business plan:
1. Keep it Professional
Your business plan should be professional in appearance and tone. First impressions matter, so make sure your plan is formatted correctly, free of errors, and easy to navigate. Include a cover page and a table of contents.
2. Begin with an Executive Summary
Your executive summary should be a brief overview of your business plan that outlines your vision, goals, and strategies. Keep it concise but informative.
3. Be Realistic
Don’t make unrealistic claims in your business plan. Make sure you back up any assumptions you make with evidence. Think about what might go wrong and how you can mitigate any risks. Remember, it’s better to be honest and upfront in your plan.
4. Be Flexible
Be prepared to adjust your business plan as circumstances change. Your business model might need to change over time due to market conditions, customer feedback, or other factors. Updated your business plan regularly to ensure that it remains current and relevant.
What to Include in Your Plan
Here are some key elements that should be included in your business plan:
1. Background Information
Include some background information about yourself and your business. Provide details about how and when you started the business, and what makes you and your product/service unique.
2. Market Analysis
Describe the market you are targeting, including who your customers are, and who your competition is. Highlight what sets you apart from other businesses and why customers would choose you.
3. Sales and Marketing Plan
Explain your pricing strategy, your intended sales channels, and your marketing plan. Describe your distribution strategy and how you plan to promote your business, such as through social media, advertising, or other means.
4. Organizational Structure
Outline your company’s structure and the key skills of your staff. Be realistic about what each employee will be responsible for and how you will manage the workload.
5. Financial Plan
Your financial plan is critical to the success of your business. Include a financial forecast that covers the short, medium, and long-term. Define your target turnover, profit objectives, and anticipated costs. Use a tool like HSBC Kinetic Current Account to manage your business finances and make informed decisions.
6. SWOT Analysis
A SWOT analysis (strengths, weaknesses, opportunities, and threats) is a valuable way to identify the key risks and opportunities facing your business.
Final Thoughts
Creating a comprehensive business plan takes time and effort, but it is essential to the success of your business. Remember to be yourself, be determined, and let your passion for your business shine through. Most importantly, be kind to yourself and give yourself time to adjust to the challenges of entrepreneurship.
HSBC Kinetic makes business banking simpler and faster, giving you the freedom to run your business. It offers categorised spending and cash flow insights, as well as partnerships that provide discounted business broadband and inspirational office space. Applying for a new business account is easy with HSBC Kinetic. Simply download the app and apply in minutes.
Start your business journey today with HSBC Kinetic.
