Ambition workshop: how to craft a solid business plan

When CGU Insurance launched its ABN Rescue campaign – in a bid to get small businesses back on track – Mendes saw the call-out, and asked for help. Photograph: CGU

The words ‘business plan’ can be overwhelming. You might have visions of a 40-page document full of jargon. But experts say it’s better to keep it simple and learn as you go

Planning is vital to business success. Without it, you won’t know whether you’re meeting your targets, achieving your goals or setting yourself up for future growth. But creating a business plan can be daunting.

Thea Mendes started her small enterprise, DOMUTS, with her son in 2017, selling chicken-flavoured treats to dogs. She says she had a spontaneous approach to the business.

“I didn’t step back and formulate a business plan or develop goals that I wanted to achieve,” Mendes says. And while she had some success, ultimately the business’s ABN, like almost half a million others in Australia in 2018-19, was allowed to lapse.

When CGU Insurance launched its ABN Rescue campaign – in a bid to get small businesses back on track – Mendes saw the call-out, and asked for help. Now, DOMUTS is getting back on its furry feet.

CGU Insurance saw the potential in DOMUTS and Mendes’s application was successful. With the help of a business adviser and marketing expertise, she is now equipped with a business and marketing plan, and a clear way forward.

“They provided me with my business mentor, David Stefanoff,” Mendes says. “He has helped me formulate a clear business plan with specific milestones to hit to then know when we can scale the business further.”

If your great idea needs a kick-start, we have the tips you need to craft the ideal business plan.

1. Only include what you really need

Business plans don’t start life as thick tomes that no one reads, and yours doesn’t have to become one. Be choosy, and only write down what’s really important.

• A business summary
As the name suggests, an overview of your business and what’s included in your plan.

• The big picture
Your business purpose – sometimes called a vision statement – with goals, milestones, ambitions and objectives.

• Information about your business
The nitty-gritty details about your business: who is in it, how it’s structured, what it does and where it lives.

• Details about what you’ll do
The fun stuff: who your competitors are, how will you market yourself, what your customers look like.

• Making the costs work
The not-as-fun stuff: how much it will all cost, projections, details of any loans, potential turnover.

2. Keep it simple

Stefanoff, who helped Mendes with her plan, says there are many misconceptions about crafting the ideal business plan. “It does not need to be complex,” he says. “In fact, the opposite is true – the simpler the better.”

You may only need one page for each section of your plan. Remember, it will change as your business grows. Give yourself space to change and reshape it as you learn what works best for you.

3. Do the right research

With access to more information than ever before, you can start researching without even leaving your chair. Be rigorous and realistic – the more you know about what to expect, the more success you’re likely to have.

Make sure you answer questions like these across a range of topics:

• Structure and legals
What kind of business structure will work best for you?
Do you need policies and guidelines in place?
Are there legal requirements for producing or labelling your goods?
What insurances do you need?

• Market analysis
What are your competitors doing?
How many businesses are already up and running?
What other products or services like yours?
Where can you sell your products?

• Production
How will you make your products?
Where will your products be manufactured?
How can you make sure they are safe?
Are you protected in case something goes wrong?

• Marketing and promotion
What marketing platforms are available to you?
What sort of budget do you need for advertising?
Do you need a logo, website and social media accounts?
How can you cut through the noise?

Read more: theguardian