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No matter what stage of starting a new business you’re in, it’s important to write things down. Everything you write down can be put into your business plan.
A business plan is for all business owners – regardless of what size business your plan on running, the industry it’s in or the location of your business. Having all your research, thoughts and ideas in one place gives clarity and refinement to your vision.
Whether your business is an elusive idea or something you’re ready to set into motion – if you haven’t already, writing up a business plan is an essential step to starting your business.
What Is A Business Plan?
There’s a lot of different elements to running a business. Finances, legal factors, contracts, intellectual property – the list can seem endless. After all, starting a business is no small task! A business plan breaks each component of starting a business into actionable, manageable steps, taking into account potential risks and factors of your businesses unique operations.
However, business plans don’t just address the technical side of running a business – the creative aspects of your business can also go into your business plan. This is where your logo designs, product or service descriptions, marketing ideas can all be put on paper. Essentially, a business plan contains all aspects of your business, becoming the blueprint for your business.
Can My Business Plan Be Adjusted Over Time?
Yes, a business plan is the framework for your business however, this framework shouldn’t be overly rigid. In fact, it’s better to leave some room for adjustment in your business plan. No matter how much research and planning you do, there will always be unforeseen challenges — that’s simply the nature of the business landscape.
Therefore, while it’s crucial to be well-prepared, it’s equally important to remain flexible and ready to adapt to changing circumstances. Your business plan should reflect this, allowing for revisions and updates.
How Do I Start Writing A Business Plan?
The beauty of a business plan is that there is no strict, standard template. While all good business plans will cover many of the same essential elements — especially if you intend to present your plan to potential investors, your business plan can be tailored specifically to your business. This means you can include whatever you believe is relevant to your business’s unique needs and goals.
Before you start typing out the first sentence of your business plan though, there’s a few things you should do first.
Understand Your Objectives
When creating a business plan, it’s important to understand who you will be creating a business plan for. Are investors, company directors or consultants going to see this plan? If you have a target audience, then you will need to keep them in mind when writing up your business plan.
If you don’t have a target audience – that’s also okay. Your business plan doesn’t need to be something that’s shown to other people, it could be something that is just for you.
Do Your Due Diligence
Research is one of the most important factors when creating your business. Well conducted, thorough research will give you the insight needed to create the right business strategies and ensure your business is on the right path.
Take the time to perform research related to your industry, target market and competitors. This is also a good time to gather financial data and make sure you’re well aware of any legal requirements that will impact your business – chatting with a legal expert is a good way to get some professional insight.
Document Everything
When conducting your research, start noting down your findings and documenting everything. As you gather the right information, writing everything down will help you create an outline for your business plan.
What Should My Business Plan Cover?
As mentioned earlier, a business plan can be tailored specifically to your business. However, there are still a few sections that most effective business plans tend to include. Remember, you don’t have to strictly follow this list—feel free to add or remove headings as you see fit. Your business plan should reflect your unique business, rather than simply copying another template. Here are a few key sections you may want to address:
- Executive Summary: This is a synopsis of your entire business plan, condensed into a few short sentences or paragraphs to give the reader a glimpse of what’s to come
- Business Description: An overview of what your business offers, along with its goals, vision, and values
- Market Analysis: This section covers current market trends in your industry and an analysis of your target market
- Marketing Strategy: An outline of the methods you will use to promote your business and reach potential customers
- Competitor Information: A discussion of businesses offering similar products or services and how your business will differentiate itself
- Organisational Structure: A description of your business’s legal structure, governance, and day-to-day management plans
- Financial Plan: A detailed breakdown of how you will manage your business’s budget, including financial projections
- Intellectual Property (IP): An overview of your business’s IP assets, such as trademarks, unique business names, designs, or patents
- Contracts and Agreements: An outline of the key contracts and legal agreements your business will need
- Regulations: A section detailing the laws your business must comply with and your approach to maintaining legal compliance
Can I Just Write A Simple Business Plan For My Small Business?
Yes, you can always just write a simple business plan for your small business. Keep in mind that a simple business plan might not work if you plan on showing your business plan to consultants or investors, as they might need a bit more detail from you.
However, in certain instances – let’s say, your business plan is only for your eyes, you can opt to have a simple business plan rather than a complex one.
Can I Use ChatGPT To Write A Business Plan?
We don’t recommend relying solely on ChatGPT to write your business plan. While ChatGPT can be a useful writing tool and a great resource for research, it’s best not to use it as your only source. Your business plan should be something that is original and unique to your business. Many users have access to chatGPT and there’s a good chance there’s more than one person asking the same questions. Your business plan should be a reflection of your unique vision, creativity and business strategies rather than being something standard.
How Can I Legally Protect My Business Plan?
So, you’ve invested all this hard work, research and time into creating a solid business plan — you probably want to protect it, right? The good news is that you might gain automatic copyright protection. Australian copyright law provides automatic legal protection to original ideas that have been recorded in any kind of material form. You don’t need to apply for copyright protection – it happens automatically.
However, copyright doesn’t exactly come with robust legal protection. In order to further protect your business plan, you may want to engage in some additional legal instruments, such as a Copyright Disclaimer or a Non-Disclosure Agreement (NDA). An NDA is essentially a confidentiality agreement, legally binding the other party to not divulge the contents of your business plan to unauthorised parties. While an NDA can’t physically prevent someone from sharing your information, it does secure your right to a legal remedy if they do — which can serve as a strong deterrent.
Key Takeaways
A business plan is an important step in starting a business – be sure to go through the necessary process to create a plan that’s right for your business. Don’t hesitate to engage expert legal advice for professional guidance.
To summarise what we’ve discussed:
- A business plan is essential for all business owners, regardless of business size, industry, or location, as it provides clarity and refines your vision
- It covers both technical and creative aspects, breaking down components like finances, legal factors, and marketing into manageable steps
- Business plans should be flexible and adaptable, allowing for adjustments as circumstances change
- There is no strict template for a business plan; it should be tailored to your unique business needs and goals
- Research is crucial for developing effective strategies and ensuring legal compliance, and all findings should be documented
- While ChatGPT can assist with writing, your business plan should be original and reflect your unique vision and strategies
- Legal protection for your business plan can be enhanced with tools like copyright disclaimers and Non-Disclosure Agreements (NDAs)
If you would like a consultation on writing a business plan, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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