A good business plan answers five questions: what you sell and to whom, why customers will buy from you rather than someone else, how you will reach them, how much you will earn and spend, and who will do the work. Write it in a few pages with realistic numbers, and update it every quarter.
Step by step
- 1
Summary
One paragraph that explains the business, the customer, your advantage and your target figure for the first year.
- 2
Market and customer
The size of the market you can actually reach, your first customer segment, and your direct competitors and their prices.
- 3
Product and pricing
What you offer, how you price it, and the profit margin on each unit or service.
- 4
Marketing and sales plan
The channels you will use, the budget, and the expected customer acquisition cost.
- 5
Operations and team
The roles you need, who will fill them, and the systems and tools you will work with.
- 6
Financials
Forecasts of sales, expenses and cash flow for twelve months, your break-even point, and the amount of funding you need.
A ten-page plan with tested numbers is better than fifty pages of theory. Funders and partners read the numbers first.
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