Developing Your Business Plan
Once you’ve confirmed the feasibility of your new business you’re ready to write your business plan. Business plans are essential for every business, not only in terms of obtaining finance, but also as an effective tool to plan the future of your businesses.
A business plan helps to save time, work and stress, avoiding wasted time, costly mistakes and lost opportunities. A plan helps you identify problems before they happen and turn them into opportunities.
Business plans provide the means to develop all components of the business and examine the consequences of a range or strategies relating to finance, management, staffing, marketing and much more. A good business plan will arrange strategic alliances, attract key employees and sell your vision to the world. It will also help you to prioritise how you allocate your time, money, equipment and other resources so you maximise your profit.
Business planning is an ongoing business activity and should be regularly reviewed and revised as your business grows or is affected by outside factors.
Depending on what type of business you intend to start, your business plan could include these elements:
- Executive Summary – a one-page overview of the plan, written after your business plan is finalised.
- Introduction – explains the purpose and objectives of going into business.
- Marketing Analysis – an analysis of the industry you are entering and how your business fits in.
- Marketing Plan – your marketing strategy.
- Operations Plan – how you’ll set up the business, i.e. structure, location, regulations.
- Management Plan – how you’ll manage your business.
- Legal and Risk Management Plan – how you can identify potential impacts on your business (both positive and negative), and produce contingency plans to avoid losses or make the most of opportunities.
- Financial plan – how you’ll finance your business, costing and financial projections, including budgets.
- The Action Plan – identifies the activities and tasks needed to achieve your goals, the resources that are needed and the personnel responsible for tasks and timelines.
For more information on how to develop a business plan, visit the DEEDI Business Resource Centre found at www.business.gov.au.
