Creating a business plan for your shop
Making a well-crafted business plan can be rewarding and valuable. It provides clarity, direction, and a framework for moving forward.
Cost-Effective Planning Approaches
DIY vs Professional Business Plans
You can choose between crafting it yourself (DIY) or enlisting a professional. Both strategies offer distinct advantages and costs.
The DIY approach is cost-effective and typically free. It allows for intimate knowledge of your business and flexibility in timing and content. Many Australian banks offer free templates, which are familiar to the bank if you're seeking funding. A good one is available here, which is extensive and presentable.
Generally, it will take you about a week to work a few hours a day. It's one of those things that is easy on the third attempt, so count on mucking a few up in your first attempt. It should take a few hours a day over a few days. Remember, perfection isn't the goal; having something is better than having nothing.
If you prefer a professional business plan, writing typically costs around $6,000. You can expect a month-long timeline for completion. The process requires significant input from you to help writers understand your business model. While more expensive, this option provides high-level industry expertise. One plus is that it's perfect if you need a business plan for a bank or investors.
Draft the plan and present it to the professional for refinement to streamline the professional process and save time and money.
The closer the purpose aligns with securing funding, the more likely I find that the plan will be professionally designed and written.
Implementation and Monitoring
Your plan should include a section on budgeting for the upcoming year. Using your accountant's profit and loss statement is a good way to do this. I find the best approach is to take last year's figures, adjust them for the current year, and create a budget.
Once you've created your initial business plan, updating it in subsequent years becomes much more manageable. Typically, in my experience, only about 20% of the content changes annually, making it a manageable task.
The Power of Planning: Success Rates and ROI
“By failing to prepare, you are preparing to fail.” – Benjamin Franklin.
Don't overthink.
The goal is not perfection but a clear, actionable plan to guide your business towards success in the coming financial year and beyond.
