Watching contestants on The Apprentice squirm as their business plans are comprehensively dismantled isn’t the easiest watch. But arming yourself with a plan can actually be hugely beneficial for your company. They’re not just for Sir Alan’s trembling hopefuls or big businesses – freelancers can benefit from having one too. It could save you time, stress and ultimately money, and we can all agree that that’s a pretty great thing.
You don’t need a 50-page dossier – a simple one-pager will do. Essentially, you’re creating a roadmap to help you to get your company where you want it to be.
Plan to succeed
Getting your thoughts down shouldn’t feel like climbing Everest. There’s no single ‘right’ way to format your plans and no set length to keep within – no two companies are the same, and neither are their plans. That said, there are some key topics to cover. Coming up with straightforward, realistic answers to these questions will give you a workable structure to build you business plan on.
Products and services
What products or services can I offer? Why would customers want them?
Target audience
Who will want to pay for them? How do I reach these people?
Product/service delivery
How do I create my products and services? How do I deliver them?
Growth
How will I expand my business in the future? How much will that cost?
Financial forecast
This is where you take what you’ve already said and add the finances into the mix. It’s about putting a price on everything you need to run your business, including the cost of products or services, all your expenses and the best bit – the money you’ll bring in. Once you’ve come up with some figures you’re happy with, it’s time to fit them together. For your business plan, you’ll need to include:
Sales forecast
How much you expect to sell during the forecast period – say, a year.
Cashflow forecast
The amount of money you expect to move through your business. This helps to give an idea of how much money you have access to.
Profit and loss forecast
As the title suggests, how much you expect to earn and lose. It’s a good idea to go a bit further with these – two to three years into the future should work
It’s not just what you say
Obviously the content of your business plan is key, but it’s about how you say it too. You know your business, but for most people reading your plan (potential investors, bank managers), it’ll be their first glimpse. Get your thoughts down in plain English, cutting all the jargon. You want their questions to be about your vision and master plan rather than the meaning of your mysterious purpose-built acronyms.
No rest for the wicked
So that’s part one out of the way. What now – pat yourself on the back and settle in for a celebratory nap? Not so fast. Okay, you can have a little well-done-me snooze, but this is an ongoing project. As your business develops, it’s useful to keep updating your plan to account for the inevitable changes to your products, customers and pricing – and even your thinking. You’ll get a constantly evolving picture of how everything’s going which will help you keep track of your company, show you whether you’ve gone off piste or even help you identify a profitable new direction.
And remember, if you’re ever in need of a helping hand with some of those figures… well, that’s what My Accountant Friend is for – online accounting with a human touch!
