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What is a Business Plan? Why Does Every Entrepreneur Need One?

A business plan is like a roadmap for your small business.

It outlines your goals, the steps you’ll take to achieve them, and how you’ll measure success.

Whether you’re just starting out or looking to grow, or maybe just revisiting your original plan at the start of a new year, having a business plan helps you stay focused and organised. 

But why is it so important?

In simple terms, it helps you understand where your business is headed, shows potential investors or partners that you’re serious, and can help you make smarter decisions along the way.

Think if it as a business health check up!

It can really help to keep you on track – as we all know, there will be twists and turns along the path to any goal, and it can be really helpful to revisit your business plan regularly, to help keep you on track!

It is also a document that potential investors/partners will expect a small business owner to have. For example, this could include banks/finance organisations as part of loan applications, or Government agencies as part of a grant applications or investors looking to invest funds in your business (either by way of loan or by purchasing a share of your business).

Let’s take a closer look into what should be included in your business plan is and why you absolutely need one.

How to Write an Effective Executive Summary for Your Business Plan (A Snapshot of Your Business)

The Executive Summary is the first section of your business plan, but often it’s written last, as it’s a summary of all of the other sections contained in your business plan, giving readers a quick overview of your business and its goals.

In simple terms, it tells people who you are, what your business does, and what you aim to achieve. Think goals, mission statement, key details.

This section should be clear and concise, highlighting the key points from the rest of the plan.

I often think of this section in terms of ‘explain your business in 60 seconds’ or as some may call it your ‘elevator pitch’ – it should be short, simple and easy to remember.

💡Good Tip: You can also use some or all of this summary as your introduction at networking events!!

The Executive Summary is crucial because it’s often the part potential investors or partners will read first—so make it count!

List your products and services

One of the key parts of writing your business plan is listing the products or services you offer. Help people to understand your business idea.

This section should clearly explain what your business sells and how it meets the needs of your customers.

Be specific about each product or service—what it is, how it works, and why people want or need it.

If you have more than one product or service, break them down into categories to make it easy to understand.

This helps potential investors or partners see the value of what you’re offering and understand how your business stands out in the market. 

Understanding your ideal customer

As part of your business plan template, it’s important to be clear about who your ideal customers are. This means thinking about the people or businesses that will benefit most from your products or services.

Ask yourself questions like:

• Who has a need for what I’m selling?
• What problems can I solve for them?
• What type of people do I help? Eg. young adults, busy parents, or other businesses?
• What locations am I targetting? Local/National/Global?
• Are you more likely to have regular customers or one-time customers?

Understanding your ideal customer helps you focus your marketing and sales efforts, and it shows potential investors that you know your market. The more specific you are about your target audience, the better you can tailor your approach to meet their needs.

Know your target audience!

Setting business goals – defining clear business objectives

Setting clear business goals is crucial for the success of your business plan.

Your goals give you direction and help you stay focused on what you want to achieve.

Start by defining both short-term and long-term goals, making sure they are specific, measurable, and realistic.

For example, instead of saying “Increase sales,” set a goal like “Increase sales by 20% within the next six months.”

Be sure to align your goals with your overall business vision and target audience.

Clear objectives in your business plan not only keep you on track but also show potential investors that you have a well-thought-out plan for growth.

By setting goals that are both achievable and measurable, you’ll create a roadmap that help keep you accountable and on track.

For example, if your goal was to increase sales by 20% within 6 months – at the end of that 6 month period, you should be able to confirm if you did in fact, increase sales by 20%. If you did not reach your goal, then you need to confirm the reason/s why – what worked, what didn’t work – so that you can apply this new knowledge and experience when making decisions for the next 6 month period.

What needs to change so that a better outcome can be achieved? Learning from mistakes is a huge part of the development of any small business!

Understanding Your Competition & Market Research

This part of a business plan is often carried out when starting a business initially, but it can be just as important to revisit your market research and competition analysis on a regular basis.

Understanding your competition is a key part of creating a successful business plan.

By analysing your competitors, you can identify gaps in the market, spot opportunities, and differentiate your business.

What is your unique selling point (USP)? What will make a customer choose you over the other businesses operating in your industry/sector?

Start by researching businesses that offer similar products or services to yours.

Look at their strengths and weaknesses, pricing strategies, marketing approaches, and customer reviews. This information helps you understand what works in your industry and what doesn’t.

It also allows you to position your business uniquely, offering something better or different. Including a detailed competitor analysis in your business plan shows potential investors that you understand the market and have a clear strategy to stand out in a competitive environment.

Financial Planning for Your Business: Essential Tips for Your Business Plan

When starting out to write a business plan, financial planning is a crucial section that helps you outline your business’s financial goals and strategies.  

Any winning business plan will have strong financial projections supporting the main business idea – without strong financial health, your new business will not last long, or will become a drain on personal resources.

Start by projecting your startup costs, monthly expenses, and expected revenue.

This will give you a clear picture of your financial needs and how much capital you’ll need to get started or grow. 

Be sure to include detailed forecasts for the first year or two, covering cash flow, profit and loss, and break-even analysis.

It’s also important to set realistic financial goals and track progress against them.

A solid set of projected financial results not only helps you stay on track but also shows potential investors that you’re prepared for the financial challenges of running a business.

It can also help you to identify potential problem financial areas in your business, for example, if business sales fall below a certain amount in the first 12 months, there won’t be enough funds in the bank to pay that large annual subscription due in Month 1 of Year 2! Or even worse the taxman!

By including clear financial strategies in your business plan, you’ll build confidence and ensure your business is on the path to profitability.

Creating a Marketing Strategy for Your Business Plan: How to Reach Your Audience

When starting a business, a strong marketing strategy is essential for reaching your audience and driving business growth.

In your business plan, outline how you’ll promote your products or services to attract and retain customers.

Start by identifying the best marketing channels for your target audience—and there are many – some examples are social media, email marketing, content marketing, or paid ads.

But your main source of sales could come from many other sources such as ‘word of mouth’ referrals, networking, writing articles/blogs etc.

Define your messaging and value proposition, making sure it resonates with the needs and interests of your ideal customers.

Set clear goals for your marketing efforts, like increasing brand awareness or generating leads, and track your progress. Especially is you are investing significant amounts of valuable business funds into paid marketing campaigns. It will be important to establish what works and what doesn’t work, early in your new business journey.

A well-thought-out marketing strategy in your business plan shows potential investors that you have a clear plan for growth and customer engagement, helping your business stand out in a competitive market.

Operational Plans for Your Business Plan: How to Outline Daily Operations

An operational plan is a key part of your business plan that outlines how your business will run on a daily basis.

It includes details about the processes, systems, and resources you’ll need to deliver your products or services efficiently.

In this section, describe your location, suppliers, technology, equipment, and any other tools that help you operate smoothly. For example, do you need a dedicated office/warehouse/client meeting space or can your business be run from your bedroom or cafe?

One of the most important decisions as part of operations will be – how will my customers pay me? For example, if payment is direct into a bank account, then this is simple and no further action required, other than to inform customers of your business IBAN. However, maybe your business needs are more complex, – you may need to be able to take payments in stages, or at point of sale on site (if selling at markets/conferences) or by regular direct debit, and this will mean that you need to consider various options available to your business, and which is the best fit.

You should also outline staffing needs, production schedules, and any key workflows. For example, if selling products online, you will need to consider packaging and delivery systems.

Other considerations may be accounting software and how to invoice your customers. If you hire staff, you will need to consider payroll & HR requirements in order to remain legally compliant and on the right side of the Revenue Commissioners!

A clear operational plan helps you stay organised and ensures everything runs according to plan. It also shows potential investors or partners that you have a solid strategy for keeping your business running efficiently.

Building Your Team: How to Outline Roles and Responsibilities in Your Business Plan

Building a strong team is essential for the success of your business, and outlining roles and responsibilities in your business plan helps set clear expectations.

It is of course, possible to run your new start-up business as a team of one, where you do absolutely everything that needs to be done, but maybe that is not the best use of your scarce time!

It will also be important to predict when your team of one, should become a team of 2 and the continued plan for team expansion into the future (and the financial income/investment required to cover these additional expenses).

Start by identifying the key positions needed to run your business effectively, whether it’s management, marketing, sales, or customer support.

For each role, clearly define the responsibilities and qualifications required.

This will help you understand who you need to hire and ensure that everyone is aligned with your business goals.

Including a section on your team in your business plan shows potential investors that you have a capable team in place or a strategy for hiring the right people.

A well-structured team is key to driving growth and achieving success, making it a critical part of your overall business strategy.

Review and Revise: How to Keep Your Business Plan Updated for Success

A business plan is a living document that should be regularly reviewed and revised to stay relevant and aligned with your business goals. 

As your small business grows and the market changes, it’s important to update your plan to reflect new strategies, challenges, and opportunities. 

Set aside time each quarter or year to revisit key sections of your business plan, such as your financial projections, marketing strategy, and operational plans.

This ensures that your business plan remains accurate and helps you stay on track toward your objectives.

Regularly updating your business plan also shows potential investors that you are proactive and adaptable, making it a vital tool for long-term success. By keeping your plan current, you can better navigate changes and continue to grow your business confidently.

Final Thoughts: Why a Strong Business Plan is Essential for Long-Term Growth

A strong business plan is the foundation for long-term growth and success. And regularly updating your plan will be a crucial part of this success.

It provides a clear roadmap for your business, helping you stay focused on your goals and navigate challenges along the way.

By outlining your vision, target market, financial strategy, and operational plans, a well-crafted business plan ensures that you have a solid strategy in place.

It also makes it easier to attract investors, secure funding, and build partnerships.

It will also help you to identify key points of change for your future business eg. the time to consider converting from a sole trader business format to a company format.

Regularly reviewing and updating your business plan allows you to stay adaptable in a changing market, helping your business thrive over time.

Ultimately, a strong business plan is essential for guiding your business toward sustainable growth and achieving long-term success.

Free Business Plan Templates

Here are few helpful (& free) templates to help you get started:

Business Plan Templates – Local Enterprise Office – DublinCity

Business Plan Templates – Create A Business Plan | Xero

Free Business Plan Template: What To Include for 2025 – Shopify