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Writing Your Business Plan

Your business plan is your blueprint for the future. It documents what your business is all about. It is also an essential requirement for obtaining external funding.

What Is A Business Plan?

A business plan is a written document that details the various aspects of your business - what it does, your vision, goals, strategies, market positioning and financial projections.

Why Do You Need A Business Plan?

A business plan is often a necessary part of getting started. It can be used for both internal and external purposes.

Internally, a business plan acts as a blueprint for your business. It helps you:

take an objective look at your business
think through the different aspects as you plan and execute
clarify and solidify your goals and direction
track and measure your success

Externally, a business plan is essential if you wish to secure external funding. The business plan serves as a key component of the assessment process.

A strong plan will give investors the confidence that you know what you are doing and have clear short, medium and long-term goals and plans. This gives them comfort that the business will be well-run, sustainable and increases the chances of them getting a healthy return on their investment.

Who Is A Business Plan For?

These are some of the institutions/people who will want to see your business plan:

Lenders like banks and financial houses
Investors like business angels, venture capitalists, friends etc.
Government agencies giving out assistance like loans and grants
Potential business partners

Just as important, the business plan is for you, your business partners and your management team. Writing a business plan is not a one-time effort.

It is a document that will go through many changes as your business grows and evolves and will be a useful reference point in your entrepreneurship journey.

What Goes Into A Business Plan?

Depending on the purpose, your business plan can contain all or some of the elements below. You can also refer to Preparing a Business Plan on the ACE website.

Business Plan Section	Content
Cover Page Table of Contents	Self-explanatory.
Executive Summary	A concise summary/overview of your plan and business, written after you have completed your plan. This is the most critical component, especially where investors and lenders are concerned, as many judge your business based purely on this section alone.
Your Business	Vision, mission, goals, products and/or services.
Market Analysis	The current market landscape and how your business fits into it. Who are your competitors? What makes your business different and unique?
Management Team & Organisational Structure	People are the most important aspect of any business. Present your credentials and how your team will work together and how it is capable of running a successful business.
Sales & Marketing Plan	How you intend to market and sell your product/service. Why would people buy?
Operational Plan	Describes the day-to-day running of your business, containing details like premises, systems, processes, etc.
Financial Projections & Plan	Financing the business, costing, revenue, targets, profit/loss projections.
Risk Assessment & Management	Being aware of potential challenges and pitfalls will help with contingency planning.
Growth Strategy	Medium to long-term growth strategies help you focus on the future while giving investors a better idea of how their money might be used in the future.
Exit Strategy	Do you wish to sell, grow or list your business? Having an exit strategy will help you to make strategic decisions more easily.