PLAN FOR SUCCESS

Drawing up a business plan can seem like a chore, but it is always worth the work. and right now, says Rosie MuRRay-west, in this time of unprecedented economic uncertainty, it has become more important than ever

WHETHER you are a new entrepreneur, a seasoned business owner or someone with the germ of an idea, experts say that getting a plan on paper will help your business to thrive.

Even so, business consultant Denyse Whillier, who runs Built To Succeed, says she often meets people who think they don’t need one.

‘Some believe that if you have a good idea and you know how to execute it, you should just go for it. Others will say they started without a business plan and it turned out just fine,’ she says. ‘This may well be true. But why would you embark on a journey and navigate it in the dark?’

Accountant Faye Watts, from accountancy firm FUSE, agrees. ‘Whether you are a start-up or an expanding enterprise, a business plan is essential. Not only might it be used for raising finance, it’s an opportunity to plan your roadmap for the future to ensure you remain focused,’ she says.

what is a business plan for?

A business plan can have many functions, and these will dictate how you write it and how long it is.

Angus Imlach, founder and CEO of Sweetshop Media and a veteran entrepreneur, says that the first function of the plan is to focus your own mind.

‘A business plan should convince you that your idea makes sense because your time, money, and effort are on the line. Excellent planning often is the difference between success and failure. Where your entrepreneurial dreams are concerned, you should do everything possible to set the stage for success,’ he says.

Sukhy Cheema, CEO at Branding

London, agrees that the plan is, first and foremost, for the entrepreneur or business leader. ‘A business plan gives you much more in-depth knowledge and understanding of how a business works, while bearing in mind the budgeting and finance details required for short-term and long-term goals,’ he says. ‘Entrepreneurs can be wary about planning too far ahead, but creating a good business plan can set the right foundation, overall vision and goals for a business.

‘A business plan is a written description of your business’s future, that describes what your aims are – in other words, your service offerings and an outline of how you plan on delivering them.’

But business plans have other functions, too. If you’re looking for funding, both banks and angel investors will want to see one.

Russell Winter, an SME fundraising expert, says that for small or medium businesses raising between £500,000 and £5m, the plan might be shorter than you think.

‘I specialise in helping SMEs raise venture capital. A business plan for them often is just a set of well-crafted PowerPoint slides combined with the succinct verbal delivery of their “story”,’ he explains.

what should it contain?

While this will obviously depend on your audience and purpose, Faye, at

FUSE, says a simple ‘one or two-page plan is sufficient’ for most businesses. She says it should cover key points including: business objectives, financial targets, long-term vision and growth strategy, the company’s ethos and sustainability targets, as well as the demographic of the customer and any short-term needs.

Sukhy, at Branding London, has a similar but not identical set of suggestions comprising an executive summary, company description, a description of products and services, industry analysis, a section on strategy and implementation, as well as a description of your management and financial plans.

Pamela Rae-Welsh, founder at online visibility consultancy Worsley Creative Services, says that there are three important things to include: marketing strategy, operations strategy and cash flow. ‘They don’t

‘why would you choose to start out on a journey and navigate it in the dark?’

have to be long – actually, short is better – but they will demonstrate to stakeholders that you have the capability to deliver, as well as just a good plan,’ she says. Financial forecasts are a key part of a business plan, but can be tricky with new businesses.

Cheryl Sharp, at Pink Pig Financial, a small business accountant, suggests a top line budget for financial goals.

Rutger Bruining, founder and CEO of biography-writing business StoryTerrace says that financials can be ‘quite high level for startups’, where the details can be hard to come by. However, he suggests ensuring that you include the milestones you expect to meet in coming months.

‘These could include sales and or user growth, the cost to acquire a customer, technical progress, regulatory approval, customer acquisition cost - it all depends on your business and your stage,’ he says.

How do I get started?

Writing a plan like this can be daunting. Phillippa Hurrell, of Hurrell Associates says that a good way to start is to make a SWOT analysis: a look at your strengths, weaknesses, opportunities and threats. ‘A SWOT analysis is a simple tool that can help you to analyse your business and can be very valuable to help you identify threats from Covid-19 and brainstorm opportunities for your small business,’ she says.

If you’re wondering where to start, Phillippa suggests answering questions such as: ‘What does the competition do better than you?’, ‘How is the market changing?’

She also suggests a focus on goals for the future. ‘Spend some time getting really clear on what you want your business to look like two years from now. Once you’re clear on this, break the vision down into concrete goals and targets.’

It’s also important to research the market that you’re in. Rutger, at biography-writing business

StoryTerrace, credits his success to understanding the market and planning well.

‘Will you be capturing a small proportion of a larger market or a large proportion of a more niche one? Either way, it’s important to prove to an investor that there is a strong demand for what you offer,’ he says.

Where can I get help?

For those who aren’t sure how to begin, there are tools to help. The Prince’s Trust charity has a template on its website (princestrust.org.uk), while the website startupdonut (startupdonut. co.uk) also has suggestions.

Other free services that can help you to write a business plan can be found at Enterprise Nation (enterprisenation.com), a network of support for small businesses.

Local business hubs and networking events could also give you access to suitable mentors to help with the process.

‘Once you’re clear on your long-term vision, break it down to concrete targets’

When to change it

We live in uncertain times, and experts are keen to point out that you need to be ready to flex your business plan and roll with the punches. ‘Your ability to be flexible is critical – to flex your offer, your ways of working, marketing, workforce and cost base. You need the ability to let go of how things were and put your energy into how they could be,’ says Phillippa, of Hurrell Associates.

Denyse at Built To Succeed says she would usually suggest reviewing annually, but the current uncertainty calls for more flexibility.

‘These are exceptional times and consumer behaviour is fast changing. My advice is to keep your business plan under regular review until there is far greater certainty when it comes to the pandemic and the economy.’