When you’re starting a business, you should definitely make a business plan. Let’s take a closer look at what it is and how to make one.
A business often starts with a great idea. However, there are a lot of important steps between having an idea and executing the idea; that’s where a business plan comes in.
How to come up with a business idea
But first, let’s take a step back. To start you need a business idea.
Some people start a business because they have a great idea. Others want to start a business and have to come up with an idea to be able to do that.
If you already have a business idea, you need to do some research and figure out how to run your business, and most importantly how you’re going to make money. In short, you need to figure out how to turn an idea into a business
If you don’t have a business idea, you need to do some research. What are your skills? What kind of businesses are needed in your area? Do some research, walk around the city, talk to other people and get some ideas going. You don’t necessarily need a brilliant new idea that no one’s ever thought of. before—most businesses sell products or services that already exist—but you need to provide goods or services that are in demand.
Not sure what type of business you want to start? These are 10 business ideas you can do from home.
Once you have an idea, you can start making a plan!
What is a business plan?
The short answer is that a business plan outlines what you’re going to be doing and how you’re going to earn money.
It’s up to you how complex you want plan to be. You can make it short and sweet, or you can include one or more budgets, plans for how to market your business, as well as information about your primary target groups
If you plan to do freelance work or work as a contractor you might not need to create a complex plan. However, if you’re planning to hire employees, expand your business, get investors onboards and so on, you need to have a business plan that explains your plans in detail. Here’s 10 reasons why you need a business plan
No matter what size business you’re starting, we recommend that you include budgets as well as a plan for how you are going to get clients.
Need a budget template? Download our free budget template and start planning for success.
Who is the business plan for?
Firstly, a business plan is a useful tool for all business owners. You can get all your ideas down on paper, get an overview of how much you’re likely to spend and to earn, as well as the long-term goals for your business.
If you’re the only one reading your business plan, write with yourself in mind. If employees or investors are going to see it, you need to make sure it’s clear, consise and easy to understand. How about adding a personal touch too, to build up your brand?
How far ahead should I plan?
When setting up a business plan, it’s common to include a timeframe. We suggest that you include goals and plans that cover a five-year period. If you want to get investors, it’s also a good idea to include long-term goals for up to ten years: Where do you envision your business will be then?
Keeping your business plan up-to-date
This is important! You can and you should update and adjust your business plan. It’s very difficult to create a five-year plan and stick to it. You don’t know what the market will look in five years and you don’t know what will happen to your business. It’s totally fine to adjust your plan if necessary. You can, for example, review your plan yearly to make sure you’re still on track, and that the goals outlined there are still the best way forward.
Best of luck with your business!
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