Business Plan Information
Alternate Names:
A Business Plan can also be called a:
- Marketing Plan
- Business Strategy
- Business Proposal
- Sales Plan
What is a Business Plan?
A Business Plan is an important planning tool used by first-time or existing business owners to outline company goals, objectives, and challenges, as well as information regarding internal management, marketing, and finances.
LawDepot's Business Plan template can be used in:
- Australian Capital Territory (ACT)
- New South Wales (NSW)
- Northern Territory (NT)
- Queensland (QLD)
- South Australia (SA)
- Tasmania (TAS)
- Victoria (VIC)
- Western Australia (WA)
What information should I include in my Business Plan?
The information you include in your Business Plan will vary depending on the type of business you own and the type of information you want to include in your plan. Generally, most business plans will layout:
- Ownership (i.e. whether you are a sole proprietor, in a partnership, in a corporation, etc.)
- Management structure (e.g. an explanation of how day-to-day operations of your business are handled)
- Goals and objectives
- Which products and/or services are offered by your company
- Information about the products and/or services offered by your company (such as your pricing strategy, patent or trademark licence details, etc.)
- Marketing strategy (e.g. the target market, whether or not you have established customers, etc.)
The information you include in each section typically depends on the reason you are making your Business Plan.
For instance, if you are creating your plan to send to investors to secure funding, you'll want to spend additional time explaining your goals and objectives as well as the products or services you are planning to sell and how it aligns with your target market.
Alternatively, if you are using your Business Plan as a blueprint to help you achieve a specific goal (like reorganising your business structure so that your company's management processes are more efficient), you'll want to spend time identifying your current management structure, how you plan to change it, and how the success of this goal will be measured.
When is a Business Plan used?
Common situations where a Business Plan may be used include:
- An existing company is purchased and the new owner would like to record key details about the business to determine if operational changes need to be made
- A group of individuals would like to create a start-up and use a Business Plan to present their business idea to potential investors
- A board of directors would like to establish new opportunities for growth for their business, so they create a Business Plan covering the company's target market as well as the potential sales tactics the company could use to reach that group
- A fast-growing company would like to adjust their company structure, so they create a Business Plan to identify their current organisational hierarchy and how it should change
How long should my Business Plan be?
The length of your plan will depend on the reason you are creating it, the category of business you operate in, the number of goals and objectives you decide to include, and, in general, how much information you decide to cover.
For example, small companies with only one or two company goals, a few products and employees, and a limited marketing strategy may only need a few pages whereas a midsized company with broader needs, lots of products and employees, and a complex marketing strategy may require several pages for their sales plan.
Do I need a Business Plan to start a business?
Though you do not need a Business Plan to start a business, using a plan is strongly recommended as it will help you organise your business' structure and needs in a clear, easy-to-read format.
Starting a business without a Business Plan in place can get chaotic if important considerations, such as outlining the company's organisational hierarchy, main products or services, or marketing strategy, are neglected, dismissed, or forgotten.
When should I update my Business Plan?
Whenever there is a significant change in your business structure, products, or needs, you should update your Business Plan. A good Business Plan helps guide business owners in achieving a particular goal or keeps them on track by setting out the business' main purpose.
What is a SWOT analysis?
Some business plans will include a SWOT analysis. SWOT stands for strengths, weaknesses, opportunities, and threats, and it is a planning technique used to identify areas where a company does well (strengths), doesn’t do well (weaknesses), could improve on and how (opportunities), and any potential issues with the business or products, such as expected material shortages or a change in consumer practices (threats).
Typically, strengths and weaknesses will deal with internal factors that are within a company's control, such as the organisation of the company, whereas opportunities and threats will consider external factors that are sometimes not in a company’s control, like a growing number of competitors.
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