7 points to ensure that your business plan is robust

At the heart of every successful business is a well written business plan. It has been proven that written business plans lead to more focus which leads to more success.

Here are 7 key elements of a successful business plan:

1. An overview of the trading activities – this should include information about the nature of the business as well as the crucial factors that you believe will ensure that the business is a success. It should also give an overview of how the different elements of your business fit together.

2. Research your competition – you have to know who your competitors are in the particular industry that your business operates in. This will help you to focus on your marketing strategy and target the businesses that you should be looking to work with. It is important that your business positions itself in the market place to ensure that it is profitable in what is likely to be a competitive environment.

3. Marketing and sales strategies – this is perhaps the most important part of your business. Marketing creates customers and clients who then generate income. In this section you should therefore define the marketing strategies and tactics that you intend to apply. This section of your business plan should be constantly updated based on your results.

4. Management experience – you should include a list of the key individuals and their roles within the business. These days digital experience at the boardroom table is fast becoming a requirement. Consider if your skill set is as current as it needs to be and address this if necessary.

5. Products and services – the business plan should include a full explanation of the products and/or services that the business will offer. It should also include the target market of the business along with the proposed selling prices of the products and/or services.

6. Financial information – you should include the amount of any initial capital required plus a projected Profit and Loss Account, Cash Flow and Balance Sheet for 3 to 5 years. The figures should be realistic and achievable.

7. Review – it is important that business plans are continually monitored to make sure the objectives are being achieved. A good business plan is never meant to be written once – it should evolve as your business evolves. Ideally you should review your business plan monthly and certainly no later than quarterly. Your professional advisers can offer support in developing your business plan to help you to maximise your business performance.

At Johnston Smillie we assist clients with their business plans and the on-going review throughout the journey of their business. If you would like to discuss any aspect of this please contact Angie Harvey on 0131 317 7377 or angie.harvey@jsca.co.uk and she will ensure you are connected with the most relevant member of the team.