Creating a Business Plan
Creating a Business Plan
Turn your business idea into a practical plan with clear objectives, an understanding of your customers and realistic next steps.
A business plan helps you organise your ideas and decide how you will turn them into a business. It gives you a clearer picture of what you want to achieve, who your customers will be and what you need to get started.
Your first business plan does not need to be lengthy or complicated. A straightforward document outlining your idea, customers, costs and goals is a useful place to begin.
- Why a business plan is useful.
- Which key sections to include.
- How to set realistic business objectives.
- How to identify the resources and costs you may need.
1. Describe your business idea
Start by explaining what your business will do. Describe the product or service you intend to offer and the problem it will solve for customers.
Consider these questions:
- What will your business sell or provide?
- What makes your offer useful or different?
- What customer need will it address?
- What do you want your business to achieve?
2. Identify your target market
Your plan should explain who your customers are and why they might choose your business. Use what you learned in the previous lesson to describe your target market and the competition.
Be as specific as possible. For example, rather than targeting everyone who needs marketing, you might focus on small local businesses that need affordable social media support.
3. Plan how you will reach customers
Think about how people will discover your business and how you will encourage them to buy from you.
- Create a website or professional social media profile.
- Build relationships through networking and referrals.
- Use suitable marketing channels to reach your audience.
- Explain clearly what you offer and how customers can contact you.
4. Understand your costs and finances
Before launching, identify the money you may need to start and run your business. This helps you estimate how much you need to sell to cover your costs.
Possible costs include:
- Equipment, materials or stock.
- Website hosting and marketing.
- Insurance, licences or professional fees where applicable.
- Travel, rent and other operating expenses.
- Tax and other financial obligations.
Separate one-off start-up costs from regular running costs. Estimate your sales and expenses carefully, and review your figures as you learn more about your market.
5. Set clear business goals
Goals help you measure progress and stay focused. Aim to set objectives that are specific, measurable, achievable, relevant and time-bound (SMART).
For example, instead of saying “I want more customers”, you could set a goal to “contact ten potential customers within the next four weeks”.
Putting it into practice
Use the activity below to create a simple first draft of your business plan. If you have not settled on an idea, use a business you might like to start.
Your business planning activity
1. Business idea
Describe the product or service you want to offer and the need it will meet.
2. Target customers
Who is most likely to buy from you, and why?
3. Marketing
List two ways you could reach your potential customers.
4. Costs
Identify three costs you expect to have when starting or running your business.
5. First goal
Write down one realistic goal you want to achieve in the next 30 days.
Record your answers in a notebook or business planning document. You can develop and improve your plan as your idea progresses.
Key takeaway
A business plan gives your idea direction. Start with the essentials, set realistic goals and review your plan regularly as you gain experience and learn more about your customers.