Plan to Succeed - simple steps to a successful business plan

Being a mumpreneur is no different to being any other type of business owner when it comes to the importance of a business plan.  Most mumpreneurs start their business without major investment and wrongly assume that they do not need a plan.

mumandworkings’s Mumpreneur Guru, Antonia Chitty, knows the importance of a business plan. Here, she shares some tips from her book, The Mumpreneur Guide, on writing a plan that will move your business forward in the right direction.

“A plan can help you grow your business in the way that you want.  Without a plan it is harder to know if each activity you do is moving you towards, or further away from, your goals,” says Antonia.  “Even if you do not write a formal plan, make notes as you go along as this can help you expose weaknesses in your business idea and fill out areas that you have not yet thought about.”  If your business has already started trading then it is still worthwhile to write a business plan to ensure you have clear aims and know how to reach your goals.

Based on her own business experience and her work with hundreds of successful mumpreneurs, Antonia has the following advice on what to think about when faced with writing a business plan:

1. Executive Summary – write a brief outline of your plans for the business, what you aim to do and how you will do it.  You may find it easiest to come back to this section when you have completed the remainder of the plan.

2. History and background – list objectives so you can focus on what you want to achieve.  Be as specific as possible and make the examples measurable so you know whether you achieve them – think in timescales of up to 12 months, one-to-three years, and up to five years.

3. Your business offering – who will buy it? What makes your offering different?  Knowing what makes your business different to any other and you will be able to start to get your business noticed and create sales.

4. Market research – write about what you have done to show there is a market for your business.  Depending on what sort of business you are planning you may be able to look in trade journals and business reports.

5. Marketing – focus on who you are reaching out to – look at age, sex, location, lifestyle, etc.  If you have a new business idea you may be guessing at the characteristics of your potential customer.

6. Premises – many mumpreneurs start off working from home which keeps costs down.  However, there is a limit to the size of business you can operate from home and mumpreneurs who are aiming high should think about premises at some point.  Think about the size, costs of setting up and improving the property with quotes from builders.  What is the rent or mortgage payment each month?  How long is the lease?

7. Capital expenditure – You may need to invest in equipment – this is called capital expenditure.  Consider what equipment you have and what you will need to purchase.  Lease or hire purchase can help spread your financial investment.
 
8. Management and staff – give details of management and staff, including CVs of key staff.  List the number of staff you will use, whether freelance or employed, their rates, hours worked etc

9. Legal aspects – will you be working alone as a sole trader or proprietor?  Working with someone else as a partnership?  Set up as a limited company?  Other regulations you need to consider are if you need planning permission, trade licences or environmental health clearance.

10. Finances – a profit and loss forecast includes overheads, the cost of running the business, materials, equipment and depreciation.  A cash flow forecast shows money coming into and leaving the business each month – this is an important part of planning.  Sales forecasts are estimates of how much your business will sell, based on your market research.  A break-even analysis works out how many sales you need to be successful where your business is making neither a profit nor a loss. Draw up a basic budget to work out the minimum you can live on.

11. Emergency planning – a business plan keeps risks to a minimum but emergencies still happen.  Have you got insurance?  What if clients take a long time to pay?  What if key staff are ill for a long time?  What if your childcare falls through or your child is sick?

12. If buying a business ... your plan will need information on the worth of the business you are buying plus details of exactly what you are buying.  Unless you are a financial whizz, get help from a solicitor or accountant.
   
“A business plan should be a working document that is something you use regularly and not something that is set in stone which you never look at,” advises Antonia.  “If some of these steps are irrelevant to you, and you do not need a plan to present to a financier, then leave them out.  Make sure you include the steps that are important to you and the future of your business.” 

The Mumpreneur Guide by Antonia Chitty contains more detail on the above steps and is full of information on how to start a business as a mumpreneur.  Further details on the book can be found at www.themumpreneurguide.co.uk.