Plenty of great businesses start with a dream – an idea that comes to you in a flash and gets you motivated enough to think about starting your own business.
But whatever the dream, you will need to encapsulate your end goals, decide on a strategy and find the funding needed to get that company off the ground – and this means sitting down to write a clear, effective business start-up plan!
Getting your business down on paper
Writing a business start-up plan has two key benefits for you as an entrepreneur.
Firstly, taking the time to write a business start-up plan helps you to focus on your business idea and work through the details of your business model. It forces you to think about the key questions and get them down on paper, some of which are:
- What is your objective for creating the business?
- Who will your customers be?
- How much can you charge for your product/service?
- What will it cost you to make this product or deliver this service?
- What other main costs should be considered?
- Will you need employees or will you go it alone?
- What will your predicted profit margin be?
- What is your turnover likely to be in year one?
Once you’ve considered these questions along with many more (I can assure you!), and given your best shot at the answers, you will have a reasonably good indication of whether your business has the potential to bring in business, create the right revenues and deliver the income you (and your team) need to make a living.
Secondly, writing down your business start-up plan makes it easier to demonstrate your idea to investors and partners. It gives you a clear explanation of your business model that you can then work on further to create a structured financial business plan to bring to your bank, potential investors and other partners you may need to work with along the course of your business journey.
In a nutshell, writing the plan highlights the elements of your business idea that work, and shows you where improvements are needed to turn your dream into reality.
Researching the market
You may have had the best business idea since the wheel, but it means nothing if there isn’t a market for your product or service. So researching your intended market is a big part of making your business plan watertight.
- Is there a need for the business in your local area?
- Where will the best location be to set up?
- Who will your core audience be?
- How will you advertise and promote your business?#
- Can your product/service be sold online?
- What price are my competitors charging?
Understanding the potential market for your product/service is extremely powerful. It allows you to be far more realistic about your income potential, your predicted profits and the underlying stability of the company.
Dealing with the management and administration
Setting up the business is not just a case of finding customers and making money, of course. As the founder and owner, you will have all kinds of new responsibilities that you need to include in your detailed business start-up plan, just some are listed here:
- You have to decide on your business structure – will you be a sole trader or a limited company (the way you are taxed will be different for each)?
- You must register your new business with the Revenue Commissioners and the Companies Registration Office.
- You may need to register for income tax, corporation tax, VAT or PAYE, if they’re relevant to your business structure.
- You will need to look at tax planning and the impact of your tax payments on your overall cash flow for the year.
- You should consider putting insurance in place to protect your income in the event that you can’t work.
There’s also the option of outsourcing your bookkeeping and financial admin to a third party. Rather than spending time on data entry and bank reconciliation, you can hand over the admin and enhance your focus on driving the business forward.
Managing your finances
One of the big things to think about is how you source and arrange the capital needed to start the business. And once you’re trading, how you manage your finances to guarantee the best possible return on this original investment.
Your bank may be happy to offer you a business loan, or you may have to source your capital from private investment. But wherever the funding comes from, your partners will expect a transparent view of your financial progress, repayments made on time and a stable return on any private investment.
How Baker Tilly can help you
Working with a business adviser will really give your business start-up plan an edge.
With nearly two decades’ experience of working with Irish start-ups and small businesses, we can help you review every detail of your business idea to ensure your plan is clear, realistic and actionable within your stated timelines.
We can also help you streamline your financial management by taking on your bookkeeping burden and giving you back more business time.
Set up a meeting with our team and they will help you turn your business dreams into a profitable, efficient reality.
Related content
