A Complete Guide on Preparing A Good Business Plan
Writing a formal business plan is pivotal when starting your company in Australia from scratch. Unfortunately, only 3 to 5 per cent of small businesses prepare a formal business plan. This means most entrepreneurs don’t know the due diligence, importance and right strategies of a business plan.
It is a roadmap towards the success of your business in the near future. A well-written plan allows you to identify a targeted market niche, secure financial resources and mitigate potential risks and challenges.
Make sure it comprises the business goals, marketing strategies, product details and financial assessment to sustain and grow your business in the competitive business market.
Here is a complete guide to help you write a well-researched and professional business plan:
1. Know Your Business Concept
This is one of the crucial steps when preparing a business plan. It is important to know the type of your business and the products you want to sell.
Also, have clarity on the USP of your venture, targeted customers, in-house team members and management.
In this step, you will need to write the summary which concludes the vision, mission and a brief description of your business in Australia.
This includes name, structure, licenses, management team., logistics, and licenses. Etc. Keep this information handy and complete all the legal formalities in advance.
2. Do Necessary Due Diligence For Your Business
Are you starting a business from scratch? If yes, then write a business plan that includes the target audience, market and competitive industries on the paper.
However, it is important to perform thorough market research to know your geographical area for selling products and services. Also, focus on the SWOT analysis to stay ahead of your competitors.
Having a data-enriched approach leads to clarity and helps you meet customer’s expectations with ease.
3. Share Details of Your Products and Services
Do not forget to provide detailed information about the products and services you offer your targeted customers. Make sure it comprises of the following aspects:
- Pricing model of your products
- Description of your products and services
- Targeted customers
- Supply chain
- Sales strategy
- Product distribution strategy
It is good to discuss on pending trademarks and patents related to your products.
4. Conduct a Detailed Market Analysis
There is no denying that thorough market research helps you identify the economic conditions, latest market trends, competitors, supply chain networks and government regulations in advance.
It allows you to set up the business effectively and foster a value proposition to create brand awareness.
5. Know Your Targeted Customers
The data collected via research should be leveraged to develop the persona of potential buyers. This will help you price and market your products to the targeted audience.
Understand the buying behaviour and convert potential ones into regular customers. So, describe your buyers by age, gender, occupation, likes, dislikes, buying pattern and income.
6. Perform a Financial Analysis
Whether you are starting a business from scratch or owning an existing business, performing financial analysis plays a vital role in the success of your business.
Financial management is crucial so that you can run or expand your business with ease. Make sure you hire a professional accountant to know the working capital, annual and quarterly budget, expected expenditure and predicted income. Also, write a strategy for saving money in the first year if you are starting a small business.
They will create financial statements, such as cash flow, balance sheet and Profit and loss statements for the next three years to predict profitability.
7. Include Additional Information
This is the best time to add important information to your business plan. This includes the resumes of your key team. Equipment leases, permits, bank statements, licenses, contracts, business credit history etc.
Make sure your business plan conveys the outlined purpose effectively so that you can get approval to run a successful business in Australia.
Once you are done with all the technical details, proofread your business plan because spelling and grammatical errors can distract prospective investors and lenders.
You can also hire the best business consultants in Australia who can help you kick-start your business by creating a well-researched business plan.
Wrapping up
There is no rocket science behind creating a professional business plan. You can keep these simple tips in mind and cover all the details to help you attract lenders and investors with ease.
