How to create a business plan for 2022

How to write a business plan and what to include

A business plan is a valuable document that lays out your ideas and strategies, including how your business will make money, its principal markets, the type of customer you’ll sell to, and the products or services you’ll offer.

Creating one offers many advantages, including assessing whether or not your idea is viable in practice, establishing how much money/investment you’ll need, and clarifying your overall strategy.

It can guide you through the start-up stage of your business or help you attract investors during a growth stage. In fact, it’s useful to develop at any stage of your business’ journey.

So how do you create a business plan for 2022 that will stand up to scrutiny from the banks and investors, whilst also creating a roadmap for the initial stages of your business if you’re starting-up?

How to create your business plan

The format of a business plan is typically dictated by the size of business, or the industry in which it operates. There’s no rigid structure, but these are some of the elements generally included:

Executive summary

The executive summary is a brief description of your business. It conveys the reason why you’ve developed this business plan and is typically a couple of paragraphs in length. It needs to be fairly concise to capture the reader’s attention so they carry on reading the entire document.

Description of your business

This is where you can describe your business and industry in more detail. Include the products or services you provide, whether it’s a start-up business or already established, the number of people you employ, your unique selling point, and your mission statement.

Your market

Include the results of your market research in this section, as well as a SWOT analysis – strengths, weaknesses, opportunities, and threats. Talk about market trends and how you intend to capitalise on them.

Business strategy

Discuss your business strategy and how it’ll be executed – your intentions and targets for marketing and sales, for example, staff and premises, and your operational systems including accounts and quality control.

Financials

This section includes financial information and projections. They need to be accurate and detailed so it’s advisable to seek professional accountancy help with this. Include a cash flow statement, profit and loss forecasts, and sales forecasts – the information you include will depend on whether you’re a brand new business or have been in operation for some time.

Tips for making your business plan

Here are a few key takeaways for your 2022 business plan:

• Keep it short and concise so the reader can quickly grasp your vision and practical details of the business
• Include supporting documentation wherever possible – this might include market research, employee CVs, or ideal customer profiles
• Don’t forget to reference the sources of any information you’ve provided - on the state of the market, for example, or your customer profiles
• Make sure you convey how your business differs from those of your competitors
• Present some data in graphical or table format to make it easier to read and understand
• Know your goal for writing the business plan – is it for investment, to unite your team, or maybe to take your established business in a new direction?

An accountant’s involvement can make the whole process of creating a business plan much easier, and crucially, ensures the figures are accurate.

Handpicked Accountants can provide you with a shortlist of fully qualified accountancy professionals in your area, who will offer trustworthy guidance and help you with your business plan. Please contact the team to find out more about how we can help.