It’s an important first step for any new business but what are the key ingredients of a robust business plan? Carrie Taylor-Mell, Team Manager for Small Business Banking at HSBC UK, and Stefan Johnson, International Trade Finance Manager for HSBC UK, share their insight and expertise on this vital topic
Why is a business strategy required?
A business plan’s principal function is to force you to plan! Stefan explains, “Writing a business strategy encourages you to analyze everything simultaneously.” Your value proposition, marketing suppositions, business operations, financial and personnel projections. It might let you stand back from your company and analyze how things are going. It can also make it clear what the company’s objective is. This kind of deeper thinking about your company might assist you in identifying any weaknesses or difficulties.
You may plan forward with a business plan by keeping track of your accomplishments, successes, and milestones. It’s a technique to build a solid foundation for your company. It’s not only about getting money; a well-thought-out business plan may help you recruit talent and investors and explain your venture.
What elements create a solid business plan?
Make the strategy seem professional, Stefan advises. Keep in mind that initial impressions matter.
Create an executive summary first. The business strategy should be brief. He continues, “Excessively complex company strategies are often immediately abandoned.
Verify the plan and make any necessary changes. To make the plan simple to explore, provide a cover and include a section of contents.
Don’t make promises you can’t keep. Stefan advises being reasonable and providing proof to support any allegations. This entails analyzing potential problems and identifying, evaluating, and reducing risks.
Be adaptable since your company strategy may need to modify depending on the situation. And much like your resume, your business plan has to be updated as your company expands and changes.
What should you include in your plan?
Some of the essential components your business strategy must include are as follows:
Give some background information, such as the specifics of your beginnings and the organization. It’s crucial to discuss oneself as well. What distinguishes you and your company? Give specifics about your product or service and your professional background.
- The marketplace and your rivals
Mention any pre-arranged clients you have. Describe the competitors and the reasons why clients will choose you over them. How can you distinguish yourself from the other companies out there?
“You are the simplest method to stand out. Your business is yours. Put your heart on that page,” Carrie advises.
What is the price structure? How do you intend to market? Describe the route from supplier to end user. What kind of advertising will you run? For instance, direct marketing or social media?
Describe the team structure and the essential personnel competencies. Be honest about your workload.
Do you have a place to work? Mention the finances, IT systems, and rules you must follow.
The financial projection presents your company in figures for the short, medium, and long terms, including intended turnover, profit, and projected expenses. Using resources like those offered by HSBC’s acclaimed business banking app. With the aid of useful cash flow forecasts, the HSBC Kinetic Current Account* may assist you in managing your company’s finances and helping you make wise choices.
Set sincere, attainable objectives advises Carrie. “Say so if you won’t turn a profit during the first 12 months. If your firm will accomplish long-term objectives, there is nothing inherently wrong with that.
Utilize the SWOT analysis (strengths, weaknesses, opportunities, and threats) to pinpoint important goals that will have a big impact and adhere to them within a predetermined time frame.
Last thoughts
“Be who you are. Be tenacious. And let your enthusiasm for your company come over,” advises Carrie.
But in addition to preparation and paperwork, launching a firm also calls for fortitude. Carrie advises businesspeople to treat themselves nicely:
“Anything worth having requires effort and commitment. So if some days don’t go as planned, try not to be too harsh on yourself. Pick yourself back up, resume your strategy, realign your attention, and go forward.
You get more with HSBC Kinetic than simply a business bank account; it strives to make business banking easier and quicker, giving you more time to operate your company. It is created with the small business owner in mind. In addition to the capabilities you’d anticipate, like accepting payments and handling standing orders, it also provides you control over your company’s finances with insights into your cash flow and expenditure by category.
By collaborating with fantastic partners that provide anything from reduced business internet to inspiring office space, HSBC Kinetic also assists clients in getting their businesses off the ground. The HSBC Kinetic app has all the information.
You can apply for a new business account in minutes with HSBC Kinetic. So if you’re a sole trader or single director shareholder limited company, find out more at business.hsbc.uk.
Simply download the HSBC Kinetic app and apply in minutes.
*HSBC Kinetic is subject to eligibility and Credit Check. Terms and conditions and fees apply.
This article was written as part of a paid-for advertising content campaign with HSBC.
