Creating a business plan: do you need one and why?
When starting and running a business, making sure you have a business plan is one of the most crucial aspects to consider.
Despite not needing a business plan to set up a business in Ireland, it will give you a sense of direction on things like the general growth and operations within your company. It will outline the sources of funding and expenditure for the new enterprise.
Not to mention, the plan can often be used to acquire loans and funding that are essential for setting up the business.
Why do you need a business plan?
Creating a business plan assists you in thinking strategically. Having provided a lot of information to readers, this will give them a particularly good indication of what your business is trying to achieve and what you need to accomplish.
A business plan can also be used to acquire funding from potential investors and lenders. Sometimes, it may be difficult to explain your vision for the business. This will support your vision and explain to an investor on paper, as oppose to relying on your thoughts.
Not only this, but a business plan will also put things into perspective. You will need to put time into undertaking market research about the product or competitors. This may help you decide on whether your business idea is a feasible one. You will have a new insight into the probability of success and this may keep you from investing your time or resources.
What should be included in a business plan?
A business plan should cover your business operations, funding and expenses in a template highlighting the important aspects that help gain customers, funders, lenders and other stakeholders so they all know what your business is trying to achieve.
A business plan should include:
- A summary of the business and its objectives
- The legal structure of the company, its location, and any managerial staff
- The gaps in the market and answers to how your business will fill these gaps
- What product services you will offer in the market
- The resources that will be hired: including the marketing, financial and operating strategies
- Management structure and recruitment
- The financial forecasts: including the profits, expenses, assets, liabilities and capital in the business
- An appendix: to attach any other relevant information or statistics
Starting a new business is an exciting and challenging endeavour, at McMahon & Co. we have extensive experience as key advisers to many different businesses that can help you navigate the path to commercial success! For more advice, please contact us today.