{"id":11386,"date":"2024-01-25T16:23:32","date_gmt":"2024-01-25T16:23:32","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=11386"},"modified":"2024-09-15T15:12:21","modified_gmt":"2024-09-15T14:12:21","slug":"how-to-write-a-business-plan","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/how-to-write-a-business-plan\/","title":{"rendered":"How to write a business plan"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">A business plan is a comprehensive document that maps out a company\u2019s journey. Commonly used to secure investment in the start-up stage, a business plan includes key sections, including the company\u2019s objectives, market research, and financial forecasts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, we will explain what a business plan is and its purpose. We will also guide you through the main sections of a typical business plan, and share some top tips for preparing your own one.\u00a0<\/span><\/p>\n<h2 id=\"what-is-a-business-plan\">What is a business plan?<\/h3>\n<p><span style=\"font-weight: 400;\">A business plan explains who you are as a business, the goals you plan to achieve, and how you\u2019re going to achieve them. It is an essential document that every business should have.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For small companies, the main purpose of a business plan is to attract investors. Whether you&#8217;re crowdfunding, pitching, or applying for a loan, you\u2019ll need to explain some of the following key details:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Who you are and the products\/services you sell<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your key demographic and market research<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your competitors and what makes you stand out from the crowd<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Financials, including production costs, profit margins, and forecasts for the next few years<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your exit strategy if things go wrong<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A business plan explains why someone should invest in you. It should instil confidence in your company and show potential investors that you\u2019ve done your research and risk analysis, and that you\u2019ve got a successful future ahead.\u00a0<\/span><\/p>\n<h2 id=\"what-your-business-plan-should-include\">What your business plan should include<\/h3>\n<p><span style=\"font-weight: 400;\">There is no set way that a business plan should look. However, there are several key sections that it must cover:<\/span><\/p>\n<h4 id=\"1-executive-summary\">1. Executive summary<\/h4>\n<p><span style=\"font-weight: 400;\">Business plans typically start with an executive summary. This is a short but vital part, as it summarises the document and highlights its key takeaways &#8211; think of it as your company\u2019s personal bio (or the first part of a <\/span><i><span style=\"font-weight: 400;\">Dragon\u2019s Den <\/span><\/i><span style=\"font-weight: 400;\">pitch).\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This section should be informative but concise, covering the basics of who you are, what you do, and why you do it. It should also express your future business aims and your financial forecasts for the first year.\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n      <div class=\"shortcode shortcode-image\">\r\n        <a href=\"https:\/\/revolutbusiness.ngih.net\/daV2kQ\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\">\r\n          <img decoding=\"async\"\r\n            src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/revolut_mobile.png\"\r\n            alt=\"Revolut Business & Affiliates.\"\r\n            class=\"md:hidden\"\r\n            loading=\"lazy\"\r\n          \/>\r\n          <img decoding=\"async\"\r\n            src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/revolut_desktop.png\"\r\n            alt=\"Revolut Business & Affiliates.\"\r\n            class=\"hidden md:block\"\r\n            loading=\"lazy\"\r\n          \/>\r\n        <\/a>\r\n      <\/div>\r\n    \n<p><span style=\"font-weight: 400;\">Furthermore, add a snapshot of your background. For example, you may want to explain the reasons behind your company name, what inspired you to form this particular business, and any relevant personal experience you might have. The idea is to inform but also fuel more interest, encouraging a potential investor to read on and find out more about your company.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You might find it easier to construct your business plan first and return to the executive summary at the end. This will ensure that this opening section doesn\u2019t mention anything that isn\u2019t explained later on.\u00a0<\/span><\/p>\n<h4 id=\"2-about-the-owner\">2. About the owner<\/h4>\n<p><span style=\"font-weight: 400;\">The next part of your business plan is all about you, the owner. Essentially, this is your CV. Its purpose is to explain why you have started (or going to start) your new company. Here, you should cover the following details:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Why you want to run your own business<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Work experience (perhaps you\u2019ve formed a company before or worked in the same field)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Skills, qualifications, and education (including any relevant certificates and proof of training)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Hobbies and interests<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Additionally, if you have any business partners, they should each provide this personal information. Remember that everything you include here should express how it\u2019ll contribute to your company\u2019s success.\u00a0<\/span><\/p>\n<h4 id=\"3-your-products-and-services\">3. Your products and services<\/h4>\n<p><span style=\"font-weight: 400;\">Here, explain the products or services (or both) that you sell. For instance, if you own a hair salon, you\u2019ll be selling hairstyling services. Perhaps you\u2019ll be selling some products as well like hair tools and treatments.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You\u2019ll need to provide as much detail as possible, so that readers can easily understand what you do, especially if your business function is more niche. For example, you may have developed a brand new app that people aren\u2019t familiar with, or maybe you have a product that plugs a hole in the market. <\/span><\/p>\n<p>          <li class=\"marker:!text-primary\">\r\n            <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/7-business-mistakes-to-avoid-when-starting-up\/\" class=\"font-semibold\" data-wpel-link=\"internal\"><span>7 business mistakes to avoid when starting up<\/span><\/a>\r\n          <\/li>\r\n                            <li class=\"marker:!text-primary\">\r\n            <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/my-company-has-failed-how-do-i-bounce-back\/\" class=\"font-semibold\" data-wpel-link=\"internal\"><span>My company has failed: how do I bounce back?<\/span><\/a>\r\n          <\/li>\r\n                  <\/p>\n<p><span style=\"font-weight: 400;\">Additionally, you should express any particular timelines for the rollout of your products\/services.\u00a0<\/span><\/p>\n      <div class=\"shortcode shortcode-image\">\r\n        <a href=\"https:\/\/acn.ionos.co.uk\/aff_c?offer_id=3&amp;aff_id=8964&amp;url_id=309\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\">\r\n          <img decoding=\"async\"\r\n            src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/242634_Domains_Banner-Cooperation_QCF_325x340_UK.png\"\r\n            alt=\"FREE .co.uk Domain Name.\"\r\n            class=\"md:hidden\"\r\n            loading=\"lazy\"\r\n          \/>\r\n          <img decoding=\"async\"\r\n            src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/242634_Domains_Banner-Cooperation_QCF_980x150_UK.png\"\r\n            alt=\"FREE .co.uk Domain Name.\"\r\n            class=\"hidden md:block\"\r\n            loading=\"lazy\"\r\n          \/>\r\n        <\/a>\r\n      <\/div>\r\n    \n<p><span style=\"font-weight: 400;\">Going back to the hair salon example, you might start your business by offering basic cutting and colour services. As you expand and build a solid customer base, you might want to partner up with a haircare brand and use and promote their products in your salon.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The main purpose here is to explain how your products and services will evolve, and what you need to do to achieve those timeframes.\u00a0<\/span><\/p>\n<h4 id=\"4-your-customers\">4. Your customers<\/h4>\n<p><span style=\"font-weight: 400;\">Next, explain who you sell (or are going to sell) your products\/services to. Is it businesses (B2B), consumers (B2C), or both? You want to paint a picture of your typical customer in this section. In their profile, you should include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Their age bracket<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Average annual income<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Geographical area<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business size (if applicable)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The industry they operate in (if applicate)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How your products\/services are relevant to them and why they\u2019d choose to purchase them<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How and why they\u2019d choose to support your business over others (maybe it\u2019s your expertise, your prices, or trendy products)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you\u2019re already trading, portraying your typical customer is fairly straightforward. If you\u2019re preparing to trade, use market research to understand your target audience and explain how many planned orders you have in the pipeline (if applicable, supported by pre-orders or letters of intent).\u00a0<\/span><\/p>\n<h4 id=\"5-market-research\">5. Market research<\/h4>\n<p><span style=\"font-weight: 400;\">Now that you\u2019ve described your typical customer, the next step is to describe your potential one. In other words, as your business expands, what does your future demographic look like? To do this, you should conduct thorough market research.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You should explain your findings from both primary and secondary research.\u00a0<\/span><\/p>\n<h5 id=\"primary-research\"><strong>Primary research<\/strong><\/h5>\n<p><span style=\"font-weight: 400;\">This is information that you have collected yourself directly from your target market. This involves methods like surveys, interviews, and focus groups.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It also includes test trading, whereby you put your products\/services to the test and see if they sell before you officially launch. You can run test trades through pop-up shops\/stalls, or by selling them on marketplace platforms.\u00a0<\/span><\/p>\n<h5 id=\"secondary-research\"><strong>Secondary research<\/strong><\/h5>\n<p><span style=\"font-weight: 400;\">This is existing data that helps you understand your target market further. This includes sources like websites (authoritative sites like the <\/span><a href=\"https:\/\/www.gov.uk\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">gov.uk website<\/span><\/a><span style=\"font-weight: 400;\"> are best), books, study reports, and public statistics (such as <\/span><a href=\"https:\/\/www.statista.com\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Statista<\/span><\/a><span style=\"font-weight: 400;\">). You should also assess your competitors\u2019 customers to better understand your own.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Remember to be as detailed as possible in this part of your business plan. Include <\/span><b>all <\/b><span style=\"font-weight: 400;\">your findings (good and bad), explain what you\u2019ve learned, and how you\u2019ll apply those learnings to strengthen your business.\u00a0<\/span><\/p>\n<h4 id=\"6-marketing-plan\">6. Marketing plan<\/h4>\n<p><span style=\"font-weight: 400;\">In this section of your business plan, you should outline your marketing strategy &#8211; how are you getting customers to engage with your products\/services? Your marketing plan must reflect your current and future efforts to bring your brand to market.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You should also demonstrate a comprehensive strategy that encompasses multiple marketing avenues. Here are some common methods and the information they should cover:\u00a0<\/span><\/p>\n<h5 id=\"website\"><strong>Website<\/strong><\/h5>\n<p><span style=\"font-weight: 400;\">You\u2019re likely to have a website up and running already. Explain how people can (or will be able to) find your website (such as sponsored advertising to improve its visibility on search engines), and be sure to include the web address, so that readers can access it in their own time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you don\u2019t have a website yet, outline what it\u2019s going to look like, what its main features will be, and how much it\u2019ll cost you to set up and maintain it.<\/span><\/p>\n<h5 id=\"social-media\"><strong>Social media<\/strong><\/h5>\n<p><span style=\"font-weight: 400;\">If your brand has a social media presence, summarise which platforms you use and how many followers you have. Then, explain what your plans are for boosting sales and brand awareness. For example, maybe you\u2019re running targeted ads, or maybe you\u2019re collaborating with an influencer. <\/span><\/p>\n<h5 id=\"events\"><strong>Events<\/strong><\/h5>\n<p><span style=\"font-weight: 400;\">There are certain events like trade shows, exhibitions, and networking events, specifically designed for small businesses to penetrate their markets. If you\u2019re already taking part, explain which events you attend, how often, whether they are business or consumer events, how much it costs you to attend, and how they benefit your business (e.g. boosting sales, product trials, or newsletter sign-ups).\u00a0<\/span><\/p>\n<h5 id=\"word-of-mouth\"><strong>Word of mouth<\/strong><\/h5>\n<p><span style=\"font-weight: 400;\">A traditional yet incredibly effective form of marketing is word of mouth. Ultimately, people want to know that the brand they choose will be money well spent. So, they often turn to friends and family for tried and tested recommendations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">People naturally recommend products and services when they\u2019ve had a good experience. However, you can also boost those recommendations by offering your customers an incentive, such as a discount on their next purchase, or an entry into a prize draw if they refer a friend.\u00a0<\/span><\/p>\n      <div class=\"shortcode shortcode-image\">\r\n        <a href=\"https:\/\/hubspot.sjv.io\/OrKdGZ\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\">\r\n          <img decoding=\"async\"\r\n            src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/hubspot_mobile.png\"\r\n            alt=\"Get Started With HubSpot's Free Tools.\"\r\n            class=\"md:hidden\"\r\n            loading=\"lazy\"\r\n          \/>\r\n          <img decoding=\"async\"\r\n            src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/hubspot_desktop.png\"\r\n            alt=\"Get Started With HubSpot's Free Tools.\"\r\n            class=\"hidden md:block\"\r\n            loading=\"lazy\"\r\n          \/>\r\n        <\/a>\r\n      <\/div>\r\n    \n<p><span style=\"font-weight: 400;\">There are many other marketing strategies that you could opt for. If you haven\u2019t carried out any campaigns yet, be sure to do your research, choose the right strategies for your business, and explain your activation plans and cost implications.\u00a0<\/span><\/p>\n<h4 id=\"7-your-competitors\">7. Your competitors<\/h4>\n<p><span style=\"font-weight: 400;\">Understanding your competitors is essential to scale your business. Regular competitor research will help you visualise your position in the market, evaluate your company\u2019s strengths and weaknesses against others, and make sure that you keep up with trends.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another important purpose of conducting competitor research is to be proactive. In other words,\u00a0 spotting the opportunities that they are missing and filling those gaps to stay ahead. Your research should include:<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\"><b>Direct competitors: <\/b><span style=\"font-weight: 400;\">Businesses that offer similar products and services to you (e.g. if you run a hair salon, a direct competitor will be another hair salon in your target area)<\/span><\/li>\n<li aria-level=\"1\"><b>Indirect competitors: <\/b><span style=\"font-weight: 400;\">Businesses that sell different products to you, but operate in the same category (e.g. if you run a coffee shop, another store selling tea and cakes is an indirect competitor, as both businesses are in the food and drinks category)<\/span><\/li>\n<li aria-level=\"1\"><b>Substitute competitors: <\/b><span style=\"font-weight: 400;\">Businesses that sell different products to you, but target the same customers<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">When covering each of these sections, you should outline your company\u2019s strengths and weaknesses versus your competitors and your USPs.\u00a0<\/span><\/p>\n<h4 id=\"8-logistics\">8. Logistics<\/h4>\n<p><span style=\"font-weight: 400;\">In this part of your business plan, you need to explain the practicalities of your products or services reaching your customers. You should answer questions like:<\/span><\/p>\n<ul>\n<li>How long does it take you to make your product?<span style=\"font-weight: 400;\"> (If you sell a service, explain how long do you need to order and receive stock from a supplier)<\/span><\/li>\n<li aria-level=\"1\">How long does it take you to deliver the finished product\/service to customers?<\/li>\n<li aria-level=\"1\">How does your business get paid for its products or services?<span style=\"font-weight: 400;\"> (e.g. cash, card, BACS, upfront, monthly etc.)\u00a0\u00a0<\/span><\/li>\n<li aria-level=\"1\">Who are your suppliers and why have you chosen to work with them?<\/li>\n<li aria-level=\"1\">Where do you carry out your business activities?<span style=\"font-weight: 400;\"> (e.g. from home, a commercial office, or a retail outlet)<\/span><\/li>\n<li aria-level=\"1\">What equipment do you need to be able to carry out your business activities?<span style=\"font-weight: 400;\"> (e.g. a computer or certain tools, and do you already have them or do you need to source them? How much will that cost?)<\/span><\/li>\n<li aria-level=\"1\">What transport do you need? <span style=\"font-weight: 400;\">(e.g. how do you visit clients? Maybe you need a van to store large\/heavy-duty tools)<\/span><\/li>\n<li aria-level=\"1\">Do you have business insurance? <span style=\"font-weight: 400;\">(including the right level of cover)<\/span><\/li>\n<\/ul>\n<h4 id=\"9-pricing\">9. Pricing<\/h4>\n<p><span style=\"font-weight: 400;\">In this part of your business plan, you need to explain your costs and pricing strategy. If you\u2019re already trading, you should show your profit margins and markups, by outlining your production costs and the final price you charge your customers. If you\u2019re not trading yet, present a forecast of what you expect these costs to be.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To work out your profit margins, divide your gross profit by your sales revenue and multiply the answer by 100. To work out your markup, divide the gross profit per item (or service) by its production cost and multiply by 100. You can try the <\/span><a href=\"https:\/\/www.xero.com\/uk\/calculators\/margin-calculator\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Xero calculator<\/span><\/a><span style=\"font-weight: 400;\"> to make it easier.<\/span><\/p>\n      <div class=\"shortcode shortcode-image\">\r\n        <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/fully-inclusive-package\/\" data-wpel-link=\"internal\">\r\n          <img decoding=\"async\"\r\n            src=\"https:\/\/cdn-quality.s3.eu-central-1.amazonaws.com\/assets\/custom\/images\/blog\/qcf-blog_sidebar.png?v=4\"\r\n            alt=\"Fully Inclusive Package\"\r\n            class=\"md:hidden\"\r\n            loading=\"lazy\"\r\n          \/>\r\n          <img decoding=\"async\"\r\n            src=\"https:\/\/cdn-quality.s3.eu-central-1.amazonaws.com\/assets\/custom\/images\/blog\/qcf-blog_banner.png?v=4\"\r\n            alt=\"Fully Inclusive Package\"\r\n            class=\"hidden md:block\"\r\n            loading=\"lazy\"\r\n          \/>\r\n        <\/a>\r\n      <\/div>\r\n    \n<p><span style=\"font-weight: 400;\">Once you\u2019ve done all your calculations, be sure to check your prices against your competitors, to see how you compare to others in your market. If your prices are below average, perhaps you need to increase them. Alternatively, if they\u2019re above average, think about the reasons why people should pay more for your products\/services.\u00a0<\/span><\/p>\n<h4 id=\"10-financial-forecasts\">10. Financial forecasts<\/h4>\n<p><span style=\"font-weight: 400;\">You now need to let potential investors and business partners know how much money your company expects to make in the next year, and how you\u2019re going to achieve those numbers. You should present realistic forecasts, as well as a worst-case scenario.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your sales calculations should be monthly, starting from the first month of trading. To work out your projected monthly sales, multiply the number of sales you make (or think you\u2019ll make) per day by 4.3 (the average number of weeks per month). Then, multiply your projected monthly sales by your profit margin to see your turnover.\u00a0<\/span><\/p>\n<p>          <li class=\"marker:!text-primary\">\r\n            <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/pay-yourself-through-limited-company\/\" class=\"font-semibold\" data-wpel-link=\"internal\"><span>How to pay yourself through a limited company<\/span><\/a>\r\n          <\/li>\r\n                            <li class=\"marker:!text-primary\">\r\n            <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/are-company-startup-costs-tax-deductible\/\" class=\"font-semibold\" data-wpel-link=\"internal\"><span>Are company startup costs tax deductible?<\/span><\/a>\r\n          <\/li>\r\n                  <\/p>\n<p><span style=\"font-weight: 400;\">Finally, your financial forecasts should show realistic numbers, as well as worst-case scenarios. Think about any external factors that might affect your projections (such as the weather or changes in the financial market). <\/span><\/p>\n<h5 id=\"cash-flow\"><strong>Cash flow<\/strong><\/h5>\n<p><span style=\"font-weight: 400;\">As part of your financial planning, you should also present a cash flow forecast. This is the net amount you expect to go in and out of your company. You can do this easily with a <\/span><a href=\"https:\/\/www.xero.com\/uk\/calculators\/cash-flow-calculator\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Xero cash flow calculator<\/span><\/a><span style=\"font-weight: 400;\">, for which you\u2019ll need the following monthly costs:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Projected monthly sales\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Other revenue<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total value of unpaid invoices<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rent<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Marketing<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payroll<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Taxes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Inventory\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Insurance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Utilities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Equipment and supplies\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any other costs<\/span><\/li>\n<\/ul>\n<h4 id=\"11-exit-strategy\">11. Exit strategy<\/h4>\n<p><span style=\"font-weight: 400;\">The final section of your business plan is your exit strategy. As much as people naturally want to be positive and their businesses to succeed, the reality is that things might not always go to plan. <\/span><\/p>\n          <li class=\"marker:!text-primary\">\r\n            <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/how-can-i-sell-my-business\/\" class=\"font-semibold\" data-wpel-link=\"internal\"><span>How can I sell my business?<\/span><\/a>\r\n          <\/li>\r\n                  \n<p><span style=\"font-weight: 400;\">When it comes to seeking investment, it\u2019s essential to be honest and transparent about your company\u2019s potential. Having a backup plan also shows that you\u2019re thorough and prepared, and you\u2019ve considered all the possible outcomes &#8211; good and bad.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Think about your answers to some of these questions:<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">How long can your business last if nothing changes? <span style=\"font-weight: 400;\">In other words, if your company continues on its current financials, how long will it survive without additional financing?<\/span><\/li>\n<li aria-level=\"1\">Do you or your company have any existing debt that could impact the success of the business? <span style=\"font-weight: 400;\">If so, what steps will you take towards paying it off?<\/span><\/li>\n<li aria-level=\"1\">If your business starts to lose money, what will\/can you do? <span style=\"font-weight: 400;\">For instance, can you cut costs by changing suppliers, or boost your sales?\u00a0<\/span><\/li>\n<li aria-level=\"1\">What if you fall out with your business partner(s)? <span style=\"font-weight: 400;\">You should have relevant agreements in place that\u2019ll help you deal with broken professional relationships, without affecting the business.<\/span><\/li>\n<li aria-level=\"1\">How will you ensure that your business remains competitive? <span style=\"font-weight: 400;\">For example, will you regularly train staff or take part in industry events to keep up with the market?\u00a0<\/span><\/li>\n<li aria-level=\"1\">If you have to close up shop, will you sell or liquidate?<\/li>\n<li aria-level=\"1\">How will all the above affect your employees and existing investors\/stakeholders?<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">By having an exit strategy, you\u2019re showing that you have thought your business idea through from all angles. Remember that they\u2019ll be looking for a realistic, future-proof business plan, and a thorough exit strategy shows that you\u2019re prepared.\u00a0<\/span><\/p>\n<h2 id=\"conclusion\">Conclusion<\/h3>\n<p><span style=\"font-weight: 400;\">So, there you have the main features of a business plan. Its overall purpose is to inform readers about who you are as an individual (the business owner), what your company does, why it does it, and what its future looks like.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This comprehensive document is normally intended for securing financing, such as bringing new investors on board or applying for a business loan.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We hope you have found this article helpful in understanding how to write a business plan. If you have any questions, please post them below.\u00a0<\/span><\/p>\n"},"excerpt":{"rendered":"<p>A business plan is a comprehensive document that maps out a company\u2019s journey. Commonly used to secure investment in the start-up stage, a business plan includes key sections, including the company\u2019s objectives, market research, and financial forecasts. In this article, we will explain what a business plan is and its purpose. We will also guide [&hellip;]<\/p>\n","protected":false},"author":28,"featured_media":11477,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1229],"tags":[],"class_list":["post-11386","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-startups"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.0 (Yoast SEO v25.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How To Write a Business Plan | Quality Company Formations<\/title>\n<meta name=\"description\" content=\"A business plan is a must-have document for every company, especially start-ups. 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