June 22, 2016

How Do You Build a Business Plan?

Are you starting a business and wondering how to build a business plan?

Starting a new business can be very daunting, and in order to set your business off to a good start, you will need a good business plan. A Glasgow accountant from The Kelvin Partnership we want to help you establish your company with a brilliant business plan.

Man working on how to build a business plan

What is a Business Plan?

A business plan outlines the goals you have for your business, typically planning for the next three to five years. A good business plan should outline the steps required to take in order to meet these goals and establish your company. You may also choose to include background information about the company.

Why Do You Need a Business Plan?

Firstly, it is important to remember that a business plan is much more than a fund-raising tool.  A business plan allows you to monitor your progress as you develop and establish your company. By setting out a clear set of aims for your business you can quickly determine whether you have reached your goals as they were first proposed in your business plan. By monitoring your progress, it becomes much easier to identify areas where you are exceeding your goals – or areas where you aren’t as successful as you had hoped – allowing you to re-evaluate your business and make changes accordingly.

As well as setting and monitoring your aspirations for your business, a business plan forces you to consider everything at once. By taking a good look at the plans for your business, you may pick up on issues that may have gone unnoticed until the problem appeared. Issues such as anticipating 10,000 customers by year two, but only planning for 2 members of staff – it is incredibly unrealistic to expect to two members of staff deal with so many customers, so you would need to reconsider your plans to ensure they are realistic.

Furthermore, if you are fortunate enough to reach a target well before the deadline you need to think about how you achieved this, did someone put in a special effort? Or did you simply over estimate? By monitoring your success and failure it allows you to plan more effectively for the future. The business plan acts as a learning tool as you reflect on all that has happened throughout the different stages of establishing your business. This learning process will improve your judgment while developing your understanding of your own business. There is a lot to it, but don’t worry you will know how to build a business plan in no time!

How to Build a Business Plan!

When building a business plan there are several elements you must include. From the summary to competitive analysis, your business plan should outline and consider a wide range of factors and areas of your business. It can be challenging to know exactly what to include in your business plan as a business plan is specific to each business. You may also struggle to calculate the figures and expected numbers for the future of your business. It can often help to have an accountant on board to ensure that you are on the right tracks. Hopefully all of our advice has now made you aware of how to build a business plan!

How Can an Accountant Help Build a Business Plan for Your Business?

With so many factors to consider when building your business plan, it can be helpful to have an accountant at your side. An accountant can help set out a realistic and comprehensive business plan, they can also help with the numbers to ensure that you set realistic goals for your new business. Having an accountant by your side from the start of your company means that you will always have access to reliable and trustworthy business help. Also, if you are starting up a company working for yourself, why not look at our last post! There is lots of information about financial planning.

At The Kelvin Partnership we want to help establish your company with a realistic and comprehensive business plan. We will also help monitor your progress to ensure you continue down the path to success.

If you are interested in creating a business plan or if you are interested in any of our other accounting services, then do not hesitate to get in touch.