10 – Business planning tips

Last Updated on 6 April 2022

A business plan benefits you more than anyone else. It concentrates the mind wonderfully and gives you some perspective. You may also need one if you want a business bank account or a loan. It shows that you’ve thought things through.

OVERVIEW / SUMMARY

In a nutshell, what are the business aims and how will they be achieved?
Who is involved – include CVs in the appendix if applying for finance
What are the financial needs likely to be? (eg investment in kit or advice)

Note: Don’t forget to calculate living costs separately for periods when your business isn’t bringing in money. This is especially important in your set-up year.

DESCRIBE THE BUSINESS IN MORE DETAIL

A bit of history – and your vision for the future.

MANAGEMENT OF THE BUSINESS

How are you set up? PAYE / Sole Trader / Limited Company?
VAT registered? (Only if Sole Trader or Limited Company)

THE MARKET

What do you know about where work will come from?
What is the likely demand at different times of the year?
Who are your competitors and/or collaborators?
What are the going rates for what you are offering?
For services, what’s the fee structure? Per day/hour? Prep & travel days?
Why should someone buy from you, not someone else? What’s unique?

GENERATING BUSINESS

How will you let people know what you are doing?
How will you reach the people with money to pay you?
How will you demonstrate that you are different from your competitors?
How will you know if you are not generating enough business?

PREMISES

Where will you be working? Home? Business premises? (Coffee shop?)
What are / will be the regular costs (overheads)?

FINANCIAL INFORMATION (I.e. all the above in digits)

Start-up costs if you’re starting out.
Cash flow forecasts.

Check out our two cash flow templates:

Simplified cash flow planner for freelancers (incl personal spending) >

Traditional business cash flow template >

Find out more:
www.gov.uk/write-business-plan
Scotland:
www.mygov.scot/writing-a-business-plan | www.bgateway.com
Wales:
www.businesswales.gov.wales – look under ‘Starting up and Business planning’
www.arts.wales – look at ‘ Funding’ for advice for arts in Wales
Northern Ireland:
www.investni.com | www.nibusinessinfo.co.uk

For a more visual approach to planning, check out the Business Model Canvas from Osterwalder, Pigneur et al (2010)

Posted on 13 January 2020