I guess the first question you are asking yourself is why do I need a business plan?

A business plan is more than just a piece of paper that gives you a sense of accomplishment when finished. It is a road map of your current and future business that helps you remain focused on your goals and objectives.

A business plan should never sit in your top drawer. It should be easily available at any time to edit and change. It is a working, living entity that should reflect your business as it grows and changes.

You may want to keep a historical copy of the document as it changes, but unless it is current and captures your business in its current form, it is simply a history paper that might give you some sense of happiness, or disappointment, when you read it in the future.

Where do I start?

The task of writing a business plan can be very daunting for a number of reasons:

• The thought of planning scares you. This is no joke. Many people have a phobia of planning, not for fear of not knowing what to do, but for fear that their ideas may not go as planned.
• Who has time to plan? I’m to busy working! A common excuse, but the reality is you don’t have time not to plan. Planning let’s you envision your direction, and ensures every decision you make helps you reach your target objectives.
• But I don’t really know what I want! Another common reason and an understandable one. You will be surprised that as you start writing your business plan, your vision will develop.
• I don't need a business plan. I've been in business for years and never needed one! This may be true, however a business plan can help you focus your business and increase its revenue opportunity.

Before you start writing anything, do a general audit of your current business. When doing this audit, don’t forget to include your greatest assets – your employees!

Ask them how they feel about the business, and take the comments, no matter how critical, on board with no prejudice. Some of your team may not feel comfortable telling you, as the business owner, how they feel. Therefore, you may want to delegate this task to a peer or manager that the team feels more comfortable with.

Your team is your eyes and ears, and will see your business from a different perspective. Take their comments in good faith and listen carefully.

Gather information on your current business, including the company itself, products and services, your team, your customers, your market, competition and don’t forget to include a list of any risks you see in your business today. These might include:

• your products - old, outdated
• competitors - existing and new
• your team - retirements, changes, training
• the market - changing demographics, demands
• you - often the most overlooked potential risk!

What do I include?

Once you have completed your audit and gathered all the information you need, you can start writing your business plan.

When writing the business plan, be realistic, yet optimistic, about your businesses growth potential, and more importantly what growth you can personally handle.

Your business plan should include:

Executive Summary
This should be the first section of any plan or document. It will outline the key elements or sections later detailed in the document.

Company Summary
This section should describe your business, and why you are in business – aka your vision! It should also highlight the skills you and your management team have, not forgetting to also profile your team’s capabilities and weaknesses.

Products and Services
What products or services do you sell? Include this important information in this section. Highlight their importance to your business, including, where possible, what revenue factor they contribute (IE, 35% of your revenue comes from non-decorated apparel).

This helps you focus on your strong products to maintain their performance, and highlights what products or services need a new direction or are costing you money.

Market Profile
What is the current condition of the market? It is critical to focus on the national and local market. Depending on your business you may also want to include the global market. For example, if you are an Australian business and 65% of your revenue is from contract digitizing you do for embroiderers in the United States, then the economical condition of America is critical to a large chuck your business’ cash flow.

Also consider local factors. Are there new businesses or business parks opening in your local area that could generate more business, or are businesses moving to move lucrative regions? These trends will affect your business and its potential for growth.

Sales and Marketing
Now that you know your team, products and services and market, the next question is how will you sell and market your business?

Explain how you will generate sales through direct marketing, advertising, websites and promotions. Factor the cost of these activities into your budget.

Revenue Projections
Now it is time to detail your yearly revenue projections and costs associated with doing business.

What's next?

Even though you may have finished writing your business plan, your attention and association to this document is not over. This document should be reviewed frequently, and updated as your business changes or grows.

Refer to it, and make sure your key staff and managers are familiar with it.