Important factors that should be included in your business plan
A business plan summarises why the business exists and the direction the business plans to go in. This is a great resource for investors, employees and managers to refer to when making decisions regarding the business and its objectives.
In this guide, we will cover the important factors that you should be including in your business plan.
The Aim – Why is it that the business exists? Consider the ways your business makes a difference in customer lives.
Goals and objectives – This should include your financial goals for the business such as; turnover, profit and your projected customer base. This is crucial information and can help you attract investment for the business.
Human resource – This section considers the people that form your team and make the magic happen. Understanding the role that each individual possesses in your business is beneficial as it can help you to illustrate how these people are helping the business move in the desired direction. If they aren’t the right fit for the business at the time, you must question their purpose within the organisation. This activity would be important to consider before you hire anyone as it would help you find the right placement to begin with.
The product or service – Once again, this is another key piece of information for stakeholders such as investors, employees and management. With this summary, all the key stakeholders within the business can understand what it is your business offers and why the market demands it.
Who are your competitors – Complete a competitor analysis to understand your competitors and what they offer. Key details about your competitors will allow you to define your differentiators which will make you stand out from the crowd.
Finance – What financial obstacles do you expect to arise when you embark on your start-up journey? Projecting the costs to get this start-up running will ensure that you can fund it. If you can’t afford to fund the venture, you will need to consider attracting investment from other sources. This business plan will help you to do that. Plus, you can justify to investors the reason why you are looking for funding.