As a new business, you may find yourself asking, “why does my startup need a business plan?”.

Well, think of it this way, you wouldn’t go on a road trip without a map (or at least Google Maps on your phone).

While it is an exciting time in your career, diving straight in without taking careful consideration of any and all possibilities isn’t advisable. Having a plan will serve as a solid foundation for the future.

If you’re still unsure, this is why your startup needs a business plan.

A handy reference point

As a new business owner, you’ll undoubtedly have a lot on your plate, and that probably won’t change any time soon. So, if you feel as though you’re unsure as to what your next steps will be to drive everything forward, you can always look back on your business plan as a single point of reference.

Your plan will include your goals and any milestones you’ve set yourself, so you can track your progress as you go. It’s also a good way to ensure you’re working in line with your business’s values (and, by extension, your own).

Finding the funding

A major part of your business plan will comprise of financial projections. Although you can’t look into the future, you can put together some estimates of how much it’ll cost to run and fund your new startup.

This becomes especially important if you need to approach lenders or investors, as they’ll want proof that you’ve thoroughly researched your venture and, perhaps more importantly, know where their money’s going.

Keeping track of your finances

Not only can your startup’s business plan help you find the money you need, but it can help you keep track of the finances you currently have in the bank.

Cashflow projections will allow you to budget for any predicted expenses you’ll incur in the future. By looking forward, you’ll also be able to set out contingencies if something goes wrong or even head off any challenges before they develop into issues.

Financial planning for your startup is essential if you want things to run on an even keel.

Planning on your structure

As a startup, you’re still relatively fresh-faced and will be focusing on giving yourself a strong start straight out of the gate. But you need to give yourself some direction as you progress.

You may decide you’re quite happy running your business as a sole trader for now, but later you could consider incorporating your business by registering with Companies House.

Again, this should be included in your business plan, as whichever structure you choose will determine how you pay tax. If you have a clear goal of forming a limited company, you’ll need to understand corporation tax. By including this in your plan, you can prepare, and when the time comes, you’ll be ready to go.

We’ll help you

Every startup should have a business plan to help them set their goals for the future and prepare for every eventuality. We love it when a plan comes together, so we’ll happily guide you through creating your plan, financial projections and all.

Get in touch to discuss how we can help your startup with its business plan.