ANIR ADVISORY
What Should a Business Plan Include?
A business idea is a starting point. A business plan helps you explore how that idea could work in practice: who your customers are, what you will offer, how much it may cost and what resources you will need.
You might prepare a business plan when starting a new business, expanding an existing one, considering an investment or seeking financing. The level of detail will depend on its purpose, but most plans benefit from a few key sections.
1. Executive summary
The executive summary gives readers a short overview of the business and the purpose of the plan. It usually includes your idea, objectives, target market, financial highlights and any funding needs.
Although it appears at the beginning, it is often easier to write after completing the rest of the plan.
2. Business overview
Describe what your business does—or plans to do—and the products or services it offers. Include your objectives, stage of development, location and the people involved.
For an existing business, this section can also include a brief history and an overview of its current operations.
3. Market and customers
Who are your customers? What need does your product or service address? How large is the opportunity?
This section should explain your target customers, the market you operate in and the factors that may affect demand. Where possible, support your conclusions with reliable research and relevant sources.
4. Competition and positioning
Identify your main competitors and consider how your business compares with them. Think about factors such as price, quality, location, customer experience and the features of your offering.
The aim is to explain clearly why a customer might choose your business.
5. Sales and marketing
A good idea needs a way to reach customers. Explain how you intend to promote and sell your products or services, which channels you will use and how you have approached pricing.
Your plan should also consider the resources and costs needed to attract and retain customers.
6. Operations and management
Describe how the business will run day to day. Depending on the project, this may include premises, equipment, suppliers, staff, technology and key responsibilities.
If you are planning an investment, outline the main steps and expected timetable for putting it into operation.
7. Financial forecasts
Financial forecasts turn your assumptions into numbers. They may include expected revenue, operating costs, investment costs, profit and cash flow, as well as the amount of funding required.
The assumptions behind the figures are just as important as the figures themselves. For example, explain how you estimated sales volumes, prices and costs. Consider what might happen if sales are lower or costs are higher than expected.
8. Funding needs
If the business requires funding, explain how much is needed, what it will be used for and the proposed sources. Depending on the purpose of the plan, you may also need to show how the business expects to meet its financial obligations.
9. Risks and challenges
Every business faces uncertainty. Identify the main risks relevant to your project—such as changes in demand, rising costs, delays or competition—and explain how you plan to manage them.
A plan that supports your decisions
A business plan is most useful when it reflects your specific business and is based on realistic, clearly explained assumptions. It can help you organise your ideas, identify questions that need further research and communicate your plans to others.
At ANIR Advisory, we help entrepreneurs and businesses prepare business plans, financial forecasts and feasibility studies tailored to their projects.
Have an idea or investment in mind? Contact us at aniradvisory@gmail.com.