Lan Nguyen, Chartered Accountant
Thinking about jumping into a new and exciting business? Before you do, you must establish a business plan. I know it may sound a little daunting but a well written plan will contribute to the success of your business.
Here are the 3 steps to get you started: WHY, WHAT AND THE BENEFITS.
Some of you may be asking why a business plan is important. Well .. imagine building a business from scratch. Think about the challenges that may arise because there isn’t a blue print to follow. A business plan will therefore minimise the anxiety and stress as there is a map to systematically cover every aspect of your business from the anticipated obstacles to the solutions for overcoming them.
So? What does a business plan actually entail?
Executive summary – an overview
Description of the business
Product/service design & development
Industry analysis
Market analysis
Marketing plan
Management team & business structure
Operations plan
Legal and risk management plan
Financial projections
Phew, that is a bit of a handful hey?
As you may have guessed, a plan that covers all these areas will take time and effort BUT the finish product will enlighten you on how well you know your business and confirm the confidence that you should have when actually launching the business.
Speaking of confidence, it is best to write up the plan yourself (or at least attempt to do so). Do not underestimate this step as writing it yourself will generate more excitement and fulfilment as you are personally putting these ideas andvision to paper which will then transition to reality.
If the benefits mentioned earlier still have you sitting on the fence then the next step will hopefully have you on board and sailing out to sea.
(1) Who usually requires a business plan when considering an application for a business loan? Banks and
lenders. Without a plan or one that has been thrown poorly together will likely make a poor impression.
(2) Secondly, you will be able to measure your objectives and performance against the plan. The plan will make monitoring your progress a lot easier.
(3) And lastly, it is better to fail on paper rather than to realise when you start your business. So, will you be writing up your business plan before starting your business? Don’t forget to share about your journey towards establishing a business.
Written by Lan Nguyen, Chartered Accountant and Wealth Adviser from Success Accounting Group.