Writing a business plan

Putting together a business plan will make you outline your business goals, get clear on your customers and products, sales forecasts and cost estimates and consider the true profitability of your business.
You will need one when applying for a business loan or if asking venture capitalists to invest in your business. Each business will have its own unique plan. While it is good to work from a template, make sure that you focus on areas of the plan that relate specifically to your business.
View this exercise as a way of testing your ideas, and deciding on strategies that will help you to reach your goals. After all, a solid business plan is essential for long-term business success. Where to start?
There are many good free business plan templates around, such as the Federal Government’s business.gov.au template page. A good business plan takes time, planning and research to put together, and it’s worth the up-front effort to assess if your idea is viable as a business and how you’re going to make it happen.
Generally the headings in a business plan and the information you’ll need to consider are:
The Executive Summary: The highlights of your plan
Location and History of Business, Facilities and Equipment; Legal Structure; Insurances: This section describes the legal entity and ownership structure, gives an overview of start-up costs and initial funding.
Products and Services: Describe the products or services you offer. Emphasise why buyers purchase those and what benefits they get. Show how much it costs to deliver what you’re selling.
The Industry and Market Analysis: Describe your target market and segment you will focus on, including market demographics, market growth, trends and forecast. Describe the nature of your industry and your competition.
Strategies, Mission, Objectives and Milestones: Marketing Strategies, Advertising and Promotion; Sales forecast and cost of sales; Distribution, Plans for Growth – Define your milestones with dates, budgets and specific responsibilities.
Management Structure and Staff Positions: Name and describe the key members on your team. List management team gaps, if any, and show how they’re being addressed.
Financials: Include a detailed financial plan and needs summary; sales forecasts, annual income and expenditure, profit and loss statement (P&L), cash flow statement and balance sheet.
Some key points to focus on are:
Outline what your core business will be. Also what is your offering and who will be your customers. This section should also detail your management structure, key products and services, innovations and insurance and legal considerations. It can be as simple or as complex as your business is.
Templates will differ, but the basic approach is the same for all business plans. It’s the time to assess your business closely, see what has worked in the past, consider what will work best in the future and produce costed plans that quantify these steps.
Your business plan is your roadmap to success. It needs to be fluid and flexible, reviewed and revised at regular intervals throughout the year. And like any roadmap, it’s a plan. You can take a side trip or take a different route. But it helps to have something with a destination, to keep you focussed on the goals ahead.
This 20 minute webinar will showcase the difference that a business plan could make for your business, and will guide you on how to develop and maintain your plan.
This webinar is produced by the Davidson Institute, Westpac's home of free financial education resources, building confidence today for a better financial future.
Deposit Accounts for Business Customers Terms and Conditions (PDF 877KB)
To be eligible to apply for Business One – Low Plan, your business must be registered in Australia.
General advice: This information is general only and does not constitute any recommendation or advice. It is current at the time of publication, and is subject to change. It has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on the information, consider its appropriateness, having regard to these matters. Consider obtaining personalised advice from a professional financial adviser and your accountant before making any financial decisions in relation to the matters discussed in this document, including when considering the finance options for your business.