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Why A Good Business Plan Can Make (Or Break) Your New Business

You’re starting a new business? No doubt you have plenty of lists of all the things that need to be done, including creating a good business plan. 

We’re NBSL, an organisation that specialises in helping new businesses in the North East do just that. So, in this post, we’ll give you a rundown of everything you need to know about creating a business plan and why they’re so crucial for new businesses.

What is a business plan?

In its most simple form, a business plan outlines the day-to-day functions of the company as well as its goals and objectives. 

A well written and thoughtfully crafted business plan is a vital piece of the business puzzle and can inform internal and external decisions. Creating a document that requires so much thought can help you consider vital information that will impact the success of your business. This may include:

  • Goals and objectives
  • Competitors and the market
  • Target audience
  • Challenges and obstacles

Critically assessing and documenting all of these elements can give you a real head start in business. Informed and accurate decision making and plenty of research prevent new businesses from launching with no direction, which causes overspending on marketing and resources that do not bring results.

Do I need a business plan for bank funding?

Typically, yes, you do need some form of a business plan to be accepted for loans or funding. But, of course, some bank funding and loans will only require minimal information. Still, it benefits your business and investors to have everything prepared and correctly communicated in a formal business plan.

Banks will want to know information about your company, the product, market, team, and any financials. This helps them make decisions on lending and any approvals they need to make to release funds for your business.

How to write a business plan (and access funded support)

There are a couple of different formats you can use when creating a good business plan, including long, detailed documentation or lean business plan formats. Typically a business plan is between 15-25 pages, but this will vary from business to business.

Usual formatting sees business plans include the following:

  • An Executive Summary is an overview of your plan. It outlines the company mission statement and any important details about location, personnel or company operations.
  • Products and services offered by the company.
  • An analysis of the current market and any competitors. This will also include things like the target audiences.
  • Marketing and sales strategy outlining how the company intends to create a loyal customer base and make sales.
  • Financial details, including projections, balance sheets or other necessary insight.
  • Budgeting and any other stock and asset details. 
  • Any additional industry-specific information.

For a new business owner, this can be overwhelming (particularly if you’ve never had to put together a formal business document before), but don’t worry, we’ve got a full-funded support service to help you get your head around creating a good business plan.

Get fully-funded help with writing your business plan

As we mentioned earlier, we are an organisation fully funded through our Enterprise Support in the North East programme that specialises in helping new businesses in Northumberland through mentoring, 1-2-1 support and business workshops. If you’re looking to start a new business in the North East, we can offer 1-2-1 support sessions to help with things like creating a good business plan and turning your vision for your business into a reality.