{"id":1539,"date":"2020-07-24T13:55:53","date_gmt":"2020-07-24T05:55:53","guid":{"rendered":"https:\/\/www.sage.com\/en-my\/blog\/?p=1539"},"modified":"2025-10-10T13:44:10","modified_gmt":"2025-10-10T05:44:10","slug":"how-to-write-a-business-plan","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-my\/blog\/how-to-write-a-business-plan\/","title":{"rendered":"How to write a business plan"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-my\/blog\/category\/strategy-legal-operations\/\" class=\"entry-header__link\">Strategy, Legal &amp; Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tHow to write a business plan\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2020-07-24T13:55:53+08:00\">24 July, 2020<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"How to write a business plan\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-my\/blog\/how-to-write-a-business-plan\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-my\/blog\/author\/keirthomasbryant\/\">\n\t\t\t\t<img decoding=\"async\" alt=\"\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2020\/05\/keir-blue-tie-rounded_med_hr-150x150-1.png\" class=\"entry-author__image\" height=\"40\" width=\"40\" fetchpriority=\"high\" \/>\t\t\t\t<span class=\"entry-author__name\">Keir Thomas-Bryant<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n<p class=\"dark-grey h3\" id=\"news-article-subtitle\">Whether you\u2019re starting a business or planning to expand, having a business plan can help to get you on track and get some detail behind your ideas.<\/p>\n\n\n\n<p>However, <a href=\"http:\/\/talkbusinessmagazine.co.uk\/2015\/01\/29\/1-4-uk-smes-dont-use-business-plan\/\" target=\"new\" rel=\"noopener noreferrer\">research from Barclays<\/a> shows that one in four businesses don\u2019t have a business plan. So what are the advantages of business planning and how could it help your business to succeed?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-business-plan\"><strong>What is a business plan? <\/strong><\/h2>\n\n\n\n<p>There are numerous reasons why you might want to start a business.<\/p>\n\n\n\n<p>You might have a great idea. Perhaps you\u2019ve always wanted to run your own company. Or maybe you\u2019ve been made redundant \u2013 perhaps due to the <a href=\"https:\/\/www.sage.com\/en-my\/coronavirus\/\">coronavirus<\/a> (COVID-19) outbreak \u2013 and you\u2019re ready to take the leap to entrepreneurship.<\/p>\n\n\n\n<p>But for your business to be a success, your passion, enthusiasm, hard work and skills should be built on a practical framework.&nbsp;And that\u2019s the case whether it\u2019s a new business or an existing one.<\/p>\n\n\n\n<p>This is where your business plan comes in.<\/p>\n\n\n\n<p>A key part of that practical framework, a business plan is a document that maps out the purpose of your company, what it does and its strategic goals, among other things.<\/p>\n\n\n\n<p>Creating a business plan for your company will guide you in defining your unique selling proposition (USP), and give you clarity of the marketplace you wish to operate in and the competition your business will be up against.<\/p>\n\n\n\n<p>You\u2019ll use your business plan to work towards a series of milestones that will help you to grow your company.<\/p>\n\n\n\n<p>But your business plan shouldn\u2019t be a static document \u2013 you should update it regularly as your company evolves, so you can ensure things are moving in the right direction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-benefits-of-writing-a-business-plan\">Benefits of writing a business plan<\/h2>\n\n\n\n<p>Jennifer O\u2019Toole, Senior Partner at accountancy firm Thomas R Dixon, says:&nbsp;\u201cA business plan is like a flight path. It lets you know where you want to go, what you want to achieve, what you have in order to achieve your goals and probably most importantly what problems you can expect along the way.<\/p>\n\n\n\n<p>\u201cBeing able to identify potential threats, problem areas that could affect the business, and to be able to develop coping strategies in a proactive manner rather than in a reactive stance, is key to business survival.\u201d<\/p>\n\n\n\n<p>It\u2019s also a great way to share information about your business, to develop your thinking and test scenarios before you make any changes (like leaving your job and going it alone), and it gives you a way to measure how things go when you do start up.<\/p>\n\n\n\n<p>And if you\u2019re looking for finance, then a business plan can make a difference. Rebecca McNeil, MD for Business Lending and Enterprise at Barclays, says: \u201cA strong plan can help applications for finance from a business loan to alternative forms of finance and investment.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-reasons-people-skip-business-planning\">Reasons people skip business planning<\/h2>\n\n\n\n<p>If it\u2019s so helpful, why don\u2019t more people choose to have one? Here are some of the common challenges:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Time.<\/strong>\u00a0If you\u2019ve thought through your business, it shouldn\u2019t take long to create your business plan. Keep it short and simple and choose a format that works for you.<\/li>\n\n\n\n<li><strong>Uncertainty. <\/strong>It\u2019s true that you can\u2019t know what will happen until you start a business but a plan can help you spot potential pitfalls and helps you to understand the finances behind your idea. Read our advice on ways to get more accurate figures in your business plan.<\/li>\n\n\n\n<li><strong>Lack of agility. <\/strong>Some people think business planning stops businesses evolving, but a good business plan should be current and adapt as you test and learn. It needs to be part of the business, not left in a drawer.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-best-format-for-your-business-plan\">The best format for your business plan<\/h2>\n\n\n\n<p>Many people assume that a business plan will be a hefty document containing lots of facts and figures, but it doesn\u2019t have to be. The key thing is to choose a format that will work for you and your business. That would be:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>One you\u2019ll use.<\/strong>\u00a0Something that can become part of your day-to-day business rather than something you\u2019ll never refer to. Have your business plan on the wall as a manifesto or mind map, make a presentation or create a visual guide \u2013 whatever works for you.<\/li>\n\n\n\n<li><strong>One that makes it simple to express your views. <\/strong>If you\u2019re a writer, you may be happy with a document, a designer might like a more visual medium. Your business plan should excite and inspire, so pick a format that lets you do that.<\/li>\n\n\n\n<li><strong>One that\u2019s shareable.<\/strong>\u00a0A business plan will be seen by lots of people, from your bank manager and accountant to prospective investors or employees, so pick a format that makes it easy to share.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-to-include-in-your-business-plan\">What to include in your business plan<\/h2>\n\n\n\n<p>What should a business plan include? Every plan is likely to be different but there are some common pieces of information that are often included:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>An overview of the business.<\/strong>\u00a0What does it do and what makes it different?<\/li>\n\n\n\n<li><strong>Goals.<\/strong>\u00a0What does the business want to achieve? This should set some SMART objectives that will quickly show if the business is succeeding.<\/li>\n\n\n\n<li><strong>Your audience and the market.<\/strong>\u00a0Who will your business supply and how will it reach them? How big is the market and who are your key competitors?<\/li>\n\n\n\n<li><strong>Products and pricing.<\/strong>\u00a0What will you be selling and how will your prices be set? How does this compare with your competitors?<\/li>\n\n\n\n<li><strong>Who is involved.<\/strong>\u00a0Many investors say they invest as much in the people as they do in the business. Share some information about people\u2019s roles, experience and passions.<\/li>\n\n\n\n<li><strong>Financials.<\/strong>\u00a0Provide details about sales, costs, break-even points and where investment will come from. If you\u2019re looking for people to invest, you should include information about likely returns. If you\u2019re looking for ways to finance your business, crowdfunding, alternative finance and government funding are a good place to start.<\/li>\n<\/ul>\n\n\n\n<p>Some business plans will include other sections, like a SWOT analysis or a full marketing plan. You might find these useful for your business, so feel free to include them too if you wish.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-use-it\">How to use it<\/h2>\n\n\n\n<p><mark class=\"highlight-and-share\">Many business owners invest time in producing a business plan and then never look at it again. <\/mark>While it\u2019s valuable to get your ideas clarified and to test your thinking before you launch your business, it\u2019s even better if it\u2019s embedded into your day-to-day business too.<\/p>\n\n\n\n<p>As O\u2019Toole says: \u201cBusiness planning is a continuous process \u2013 from the initial start up any business to stage two of developing and growth of existing sales and developing new income streams.<\/p>\n\n\n\n<p>\u201cAs established businesses mature and diversify, business planning continues to play a fundamental role in ensuring that the company\u2019s long-term strategies are being met.\u201d<\/p>\n\n\n\n<p>Here are some ways your business plan can work for you:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Take the sales, cash flow and expense predictions and measure them against your actual figures. This helps you spot whether you\u2019re on track and if things need to be revised.<\/li>\n\n\n\n<li>Revisit your goals every month to see how you\u2019re progressing.<\/li>\n\n\n\n<li>Keep updating it to include customer input and quotes. Real feedback is essential for keeping a business on track.<\/li>\n\n\n\n<li>Revisit it once a year to see if changes to the market, technology or competition has had an impact. Businesses need to continue to evolve to survive in the longer term.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-where-to-get-help-with-your-business-plan\">Where to get help with your business plan<\/h2>\n\n\n\n<p>Sometimes you\u2019ll need additional information to pull together your plan. You could:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Speak to your accountant.<\/strong> They don\u2019t just help you with financials or <a href=\"https:\/\/www.sage.com\/en-my\/accounting-software\/\">accounting software<\/a>, they can also offer advice about planning your business.<\/li>\n\n\n\n<li><strong>Talk to your bank<\/strong>. Many have small business experts who can help.<\/li>\n\n\n\n<li><strong>Use business planning templates.<\/strong> Our free, easy-to-follow Word template will help to make the process easier.<\/li>\n<\/ul>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-9bb1029b-6379-408c-b78c-6f45c352c6f3\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-my\/blog\/wp-content\/uploads\/sites\/25\/2022\/04\/GettyImages-1178687924-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-my\/blog\/wp-content\/uploads\/sites\/25\/2022\/04\/GettyImages-1178687924-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A business plan is essential for reaching financial success. Download our business plan template and use it to help you achieve your goals.<\/p>\n","protected":false},"author":280,"featured_media":1465,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[17,15],"tags":[43],"business_type":[109],"context":[],"industry":[],"persona":[83],"imagine_tag":[146,147],"coauthors":[199],"class_list":["post-1539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-planning","category-strategy-legal-operations","tag-business-strategy","business_type-small-business"],"sage_meta":{"region":"en-my","author_name":"Keir Thomas-Bryant","featured_image":"https:\/\/www.sage.com\/en-my\/blog\/wp-content\/uploads\/sites\/25\/2020\/02\/RSPCA_2018_X3_EnterpriseManagement_BB_295631_00106.jpg","imagine_tags":{"146":"Small business","147":"Start up business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Malaysia","distributor_original_site_url":"https:\/\/www.sage.com\/en-my\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/posts\/1539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/users\/280"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/comments?post=1539"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/posts\/1539\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/media\/1465"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/media?parent=1539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/categories?post=1539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/tags?post=1539"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/business_type?post=1539"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/context?post=1539"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/industry?post=1539"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/persona?post=1539"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/imagine_tag?post=1539"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-my\/blog\/api\/wp\/v2\/coauthors?post=1539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}