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)
- 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?
- 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?
- 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:
Find out more:
www.mygov.scot/writing-a-business-plan | www.bgateway.com
www.businesswales.gov.wales – look under ‘Starting up and Business planning’
www.arts.wales – look at ‘ Funding’ for advice for arts in Wales
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