What is a business plan
A business plan is a good way to sum up:
- the customer need you’re aiming to meet
- how your business will meet that need while making a profit
It should clearly show the results of your customer research, and that you’re able to explain how you can turn your idea into a viable business before you invest lots of time and money.
Your plan can also be a very helpful tool to convince other people of the value of your business. This includes potential partners and sources of funding.
Why you need a business plan
A business plan is a written document that describes your business. It covers objectives, strategies, sales, marketing and financial forecasts.
A business plan helps you to:
- clarify your business idea
- spot potential problems
- set out your goals
- measure your progress
You’ll need a business plan if you want to secure investment or a loan from a bank.
It can also help to convince customers, suppliers and potential employees to support you.