How to write a business plan for professionals

If you are in the process of starting your own business, or perhaps looking to further your existing business, you may have been advised to draw up a business plan - but what is this and what does it look like? A business plan can be beneficial for many businesses, whether you are a new business pitching for funding, or you are an established business seeking to gain a better understanding of your business.

Read our step-by-step guide below to discover how to write a business plan.

What is a business plan?

A business plan is a document where you map out your business and plan what you hope your business will become going forward. This includes looking at what type of business you are looking to build, what actions you will need to take to get there and what your brand will stand for. Whether you are setting up an estate agency or becoming a self-employed business consultant, producing a business plan will assist you with the running of your business.

Why do professionals need a business plan?

Often, business plans are utilised at the funding stage, acting as a document that succinctly explains your business’ unique selling points, structure and aims to potential investors.

A business plan can also be advantageous on an internal level to help you understand every aspect of your business. Forbes shares how a business plan is beneficial by providing you with a roadmap for your business, helping you to identify potential challenges, and helping you to monitor progress.

These types of plans also function as a starting point to come back to when you start thinking about branding, marketing and your business’ image in the public sphere. It is a useful resource to help you, your employees and third parties understand exactly what your business is all about. Read our dedicated article to discover the advantages of business plans in more depth.

What to include in a business plan

Your business plan should be tailored to suit the needs of your business. No two businesses look exactly the same, so no two business plans should either. However, to understand how to write a business plan, there are a number of sections every business owner should include to make the most of their plan.

Markel Direct customers are able to access a detailed business plan template via the Business Hub: a website that experts at Markel have created, providing information and templates designed to help you run your business.

Cover page and contents page

Your cover page should include your name, your business name and document name, which is a business plan in this case. Whatever your business specialises in, it is important to have contact details in a prominent position so that investors or potential collaborators know exactly how to contact you.

A contents page is optional; however, it would be beneficial to any readers who may want to visit, or revisit, any particular sections within your plan.

Executive summary

This should be a short introduction which summarises your business plan, providing a brief but compelling overview. An outline of the below should be provided:

• Describe the purpose of your business.
• Highlight your target market.
• Explain what gap(s) in the market it aims to fill.
• Outline basic start-up costs and other important financial details. This should include initial overheads costs, stock costs, start-up business insurance expenses, etc.

Do not go into too much detail as the rest of the document is a chance to provide the specifics.

Discover our guide to how to write an executive summary for more in-depth guidance and an example of an executive summary.

Company overview

Now you can start going into more detail about your business. An article by e-commerce platform, Shopify, advises to include the following components in your company overview:

• Your business structure (Are you a sole proprietorship, general partnership, limited partnership, or incorporated company?)
• Your business model
• Your industry
• Your business’s vision, mission, and value proposition
• Background information on your business or its history (including when your business was first formed and where you are based
• Business objectives, both short and long term

This is also a good opportunity to discuss any previous achievements your business has made, such as awards, accreditations or endorsements, and to outline your business insurance coverage.

Market research

Research the industry you are planning on competing in, provide an overview of the market, including the size, and make sure to note any trends or fluctuations your analysis has picked up.

Identify and research your competitors, perform a SWOT analysis to look at strengths, weaknesses, opportunities and threats, and explore how your business aims to compete with them, in addition to noting how saturated the market is for your niche. If there is a gap in the market that your business fills, explain how that will give you a competitive advantage.

Describe your ideal customers – be specific when it comes to the psychographic and demographic make-up of your customer base. You could even include buyer personas and ideal customer profiles to help illustrate your point.

Management and organisation

Include a section on your key managerial employees and team members to help show your business is set up for success. Smartsheet recommend listing the roles and responsibilities of each person integral to the success of your business, and if it is feasible, to note the hierarchy or team structure. Highlight any accomplishments and qualifications of each team member, and if you are looking to fill any recruitment gaps, you can be transparent and share this.

Products and services

In this section, you need to explain what your business is going to sell or offer. Describe the product or service, pricing details, and how your offering will benefit your target customers. You must also detail any associated research and development you have done, and include how you will protect any intellectual property, including documentation for copyrights or patents.

Marketing plan

You should now explain how your business plans to interact with customers to attract and retain your target market. Detail the media you intend to use to promote content to new customers, including any upcoming advertising or marketing plans. It is also helpful to detail how your customers will buy from you, whether it is in a store, online, over the phone, in the post or a mixture of multiple options.

Operations and logistics

Your operations plan should be focused on what actually needs to happen on a day-to-day basis within your business. An article by the British Business Bank shares how your operational plans can include information on the location you plan to trade from, the number of staff you will need to employ, what their roles will be and any equipment or tools you may need to run your business.

It is important to specify what a successful day would look like, as well as setting goals for the next few years. If you have already established your business, detail your current operational structure and use existing performance data to set goals.

Financial plan

Investopedia, the world’s leading source of financial content on the web, advises established businesses to include financial statements, balance sheets, and other relevant financial information, and recommends that new businesses should provide financial targets and estimates for the first few years. Ensure you outline the assumptions powering your financial projections and make it clear how much revenue you expect to generate, as well as including information about how any funding will be used.

Your projections must be reliable and realistic, especially when presenting any funding requests to investors, so use industry research and statistics for assistance, and ensure you check your projections as best as you are able to, including comparisons with previous company performance.

Appendices

Any important documents should be included in an Appendix at the end of your business plan. You should provide supporting evidence, such as legal documents, patents, permits, licences or contracts, for what you have detailed and planned for your business.

Discover help & guidance for self-employed professionals, or read more about our insurance solutions for self-employed professionals.

Please note: This article provides guidance for information purposes only. It should not be relied upon wholly when making or taking important business decisions – always seek the services of an appropriately qualified professional. The views expressed by websites referenced to are limited to those of the websites, and do not necessarily reflect the views of Markel Direct.