During 2019/2020, a total of 665,495 start-up businesses were launched in the UK, according to recent data. For a new venture to survive the first year, it’s crucial to have a solid business plan in place. Here are some tips for putting together a sound plan, that can be referred to for guidance, and also help you to make a convincing case for funding.

Executive summary

This is the ‘elevator pitch’ for your business idea; i.e., a succinct summary which would enable you to explain your business idea to someone during a short elevator ride. State the unique selling points of your idea, how you plan to market it, and a brief financial forecast.

What is the business need?

State what gap in the market you have identified; this could be a service which is currently not provided at all, or there is not enough to meet demand; a product which there is a strong consumer demand for; or otherwise addressing a problem with a good solution.

What is your solution?

State how you will solve the problem, meet the demand; why should people buy your products or use your services? What is unique about them?

Business structure

You will need to decide whether you are going to be a sole trader, a partnership, or a limited company.

Market research

Include an analysis of the market you are entering and who your competitors will be. It should also identify your potential customers, and the current trends in the market.

Strategy

Explain the day to day running of the business, including sales and marketing, operations, and what, if any staff, you will employ.

Finances

Include a sales forecast, a profit and loss forecast, and a cash flow statement. Finally, draw up a balance sheet to show the overall picture of your assets, liabilities, and equity.

If you would like to speak to profit consultants, please get in touch today.