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Why you need a business plan

Whether you're just starting or have been running your business for years, business planning is essential to your success.

Here are the main reasons to have a business plan.

It helps you prioritise

A business plan:

  • gives your business direction
  • defines your objectives 
  • maps out how you'll achieve your goals
  • helps you identify and manage possible risks.

It gives you control over your business

The business planning process helps you learn about the different things that could affect your success.

If you're already in business, it helps you step back and look at what's working and what you can improve on

It helps you get finance

If you're seeking finance for your business, you'll need to show banks and investors why they should invest in you.

A clear, convincing business plan helps investors see that you know what you're doing and have a plan for success.

Use our business plan tool

Our tool helps you to develop a simple business plan to:

  • evaluate a new business idea
  • set some goals for the year ahead
  • keep your business on track.
Go to the tool

Download a detailed business plan template

Use this template if you either:

Business plan template

docx · 0.07 Mb

Tips to help you write your business plan

Work out who your plan is for and how you're going to use it. Is it just to guide you and your staff? Or will you share it with others, like potential investors or banks?

Knowing who and what your business plan is for helps you target it to the right audience. If you're developing the plan for people outside your business, you'll need to determine what they are most interested in.

Use our detailed business plan template if you are seeking funding for your business.

Lenders and investors want to see that your finances are in order and your business is in a strong financial position. They'll want to know how much:

  • money you currently have
  • money you need
  • money you expect to make in the near future.

While a bit of extra funding can help you cover unexpected costs, it's best to be realistic and not ask for more than you need.

It's OK if you're starting out and don't have all this financial information yet – our template includes resources to help you get your finances ready.

Your business plan summary should include details about your business, market, goals and what makes you different from other businesses. It's often easier to write this once you've completed the rest of the business plan. 

The summary is your opportunity to sell yourself, but don't overdo it. Summarise the main points of your business plan using as few words as possible. You want to get to the point but not leave out any important facts. 

Don't leave your business plan to the last minute. It takes time, research and careful preparation to develop an effective business plan.

If you need help with your business plan, consider getting a professional to look over it and give you advice.

Many business advisers can provide expert help with business planning. Find a business adviser in your area.

Your business plan will need to change as your business changes and grows. Review and update your plan regularly to stay focused and make sure your business keeps heading in the right direction.

It's a good idea to keep previous versions of your business plan in your records.

If you have innovative business practices, products or services, you might want people to sign a confidentiality agreement before you share your business plan with them.

It can also be a good idea to include words in your plan asking the reader not to disclose the details.

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