Top 5 Tips: Business Planning
Top 5 Tips: Business Planning
A practical guide to business planning in 2023.
If you’ve met with one of our business advisors, heard us speak at an event or had a look at our socials, you’ll know how important we think plans are. Whether it be a content plan for your social media, a budget for yourself and your business, a plan for your business operations, or a myriad of other things you may need to plan for in your business – the one thing that is for certain is that all businesses need planning.
Why do I need a business plan?
A business plan is an essential part of all businesses. It helps you to define your business, set goals, and identify the resources and actions you need to achieve them. A great business plan not only helps you to focus on the most important aspects of your business, but it also helps you to communicate your vision and strategy to others, this might be investors, partners, and employees.
Our General Manager, Chris Davis, shares his top 5 tips for creating a great business plan:
- Make your plan fit for purpose
- Define your customer(s)
- Note your assumptions
- Don’t forget the numbers
- Remember the plan is not set in stone
Tip #1: Make your plan fit for purpose
A business plan should be tailored to suit your business (and personal) needs and goals. What a lender or investor wants to see is different to what you need to communicate to your employees. All plans serve a purpose so remember to make sure the particular plan you’re writing is fit for purpose.
Chances are the plan you’re developing now is to get ideas out of your head and onto paper so make sure it’s in a format that makes sense to you. Whatever it looks like, it should be concise, clear and focused on the specific needs of your business.
Tip #2: Define your customer(s)
Identifying your target market is crucial for the success of your business. A clearly defined target customer base helps you to understand their needs and preferences and allows you to tailor your products or services to address their challenges or needs. It also saves a whole heap of resources, whether it be money wasted on scattergun advertising, or social media content delivered via a platform that your customer is not on.
Tip #3: Note your assumptions
It is important to be realistic when putting together your business plan. Make sure to note any assumptions you are making about financial projections, the market, competition, or potential challenges you and your business may face. This helps to ensure that your plan is based on solid foundations and allows you to remember what educated guesses you took when you are adjusting your plan.
Tip #4: Don’t forget the numbers
A business plan should include financial projections, including projected income and expenses. These projections will help you to understand the financial viability of your business and to make informed decisions about your resources and budget. If you are starting out in your business journey, don’t forget to do the personal budget, how else are you going to work out if you can afford to pay your bills?
Tip #5: Creating a set of goals in a silo
A business plan is a living document that should be updated and modified as your business grows and changes. Make sure to review and update your plan regularly to ensure that it remains relevant and accurate.
A business plan is a valuable tool that helps you to define and achieve your business goals. By following these tips, you can create a plan that is tailored to your needs, grounded in reality, and flexible enough to adapt to changing circumstances.
If you would like to chat with one of our Mentors about your business plan in 2023, our Digital Solutions program is a great place to start. Contact us here to arrange an appointment.
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