Never written a business plan before? You’re not on your own. Most people starting a business have never written a business plan.
If you’re a mechanic, florist, therapist, dog groomer or cleaner, you might be brilliant at what you do but have no idea where to start with business planning.
The good news is that a business plan doesn’t have to be complicated. It’s simply a way of putting your ideas on paper and working out how your business will make money.
TEDCO runs a regular workshop called How to Write a Business Plan That Works which takes you through the process step by step, so you don’t have to figure it all out on your own. You’ll get a free Business Plan Template as well.
Amy Clark (pictured) from South Tyneside was once in the same position. Read how she started Shine and Smile Services Ltd with TEDCO’s support on our Business Start Up blog.
For now, here’s a quick guide to get you started.
Ask yourself why you’re writing a business plan
Before you start writing, think about what you want your business to achieve.Are you looking to turn a skill into a business? Apply for finance? Grow an idea into something bigger? Knowing your goal will help you focus on the information that really matters.
Make more money than you’re spending
At its simplest, a business needs to bring in more money than it spends. Your business plan should show where your income will come from and what it will cost to run your business. That could include equipment, materials, insurance, fuel, rent, software or anything else you need to operate. Don’t worry if spreadsheets aren’t your thing. TEDCO’s finance workshops can help you understand the numbers and build realistic forecasts.
Think about your customers and anyone funding your business
A good business plan should show that you understand your customers. Who is most likely to buy from you? Why would they choose you instead of somebody else? You should also think about who will be reading your business plan. That could be a lender, an investor or simply you, using it as a roadmap for your business. If you’re writing to support a funding application such as a Start Up Loan, we can help you to explore a range of funding sources.
Pull it all together
Once you’ve completed the main sections of your plan, write a short summary that pulls everything together. Think of it as the highlights version. Someone should be able to read it and quickly understand what your business does, who it serves and how it plans to make money.
Seek out support (that’s where talking to TEDCO is handy!)
Even if you plan on writing the business plan yourself, it’s still advisable to have it reviewed by somebody with experience. They’ll be able to offer suggestions on how to tighten up your plan and make it even stronger. They can also help with the numbers (the dreaded spreadsheets!) to make sure everything is in order.
Remember, your business plan doesn’t have to be perfect. It just needs to be good enough to help you move your idea forward. Most plans improve over time as your business grows.
If you’re in North East England and thinking about starting your own business, get in touch. Find out what support is available where you live (or want to start your business) on the TEDCO Programmes page.
A great place to start is by booking a place at one or more of our free TEDCO workshops or register for TEDCO support on the Initial Enquiry Form and we’ll be in touch to help you as much as we can.
This project is funded by North East Mayor Kim McGuinness and The North East Mayoral Strategic Authority.