WHY A BUSINESS PLAN CAN TRANSFORM YOUR BUSINESS?

Why your business plan is important

Extracted from ‘Getting started in the hair extension business by Diane Shawe’

Every type of business owner needs a solid business plan. Whether you are opening a new hair extension studio or your business is already in full swing, you need a plan to organise yourself. I know it seems mind boggling, but there are several good online or CD packages provided by banks and advice centres to help you streamline your business plan.

There is no need to pay hundreds of pounds to have one written up, not in this trade anyway.

A business plan will help you to establish all of the components of your business. Without a good plan there will be no solid goals, no specific direction. You need to know where you are headed and have some expectations of the future. Referring to it and updating it is important to maintain growth.

When you write your business plan, write it as an outsider looking in. Remember that that your business manager at the bank might not be familiar with your business concept, but by reading your business plan they should have a fair understanding of what it is all about.

Profitability is very important

To be truly profitable, you need to consider every part of the business before commencing. Otherwise what started out as a great idea may end up a disaster. Deciding on your preferred clientèle is great for starters. Your location for the hair extension studio will have a lot to do with the choice of clientèle. So will the fit out of the hair extension studio.

The correct combination of management and employees is also important. This will be a decision connected with the choice of clientèle. The skills and experience of your staff is important when considering the expectations of the client. The range of services you provide, along with the products you use and sell, will have to measure up too.

You must think really hard about what prices to charge. You must do much more than cover costs, but you don’t want to price yourself out of the market.

You need to know how much capital is needed and how it will be used. If you need finance to start your business, it is crucial to have a business plan to present to the bank. The bigger the loan, the more detailed the financials will need to be.

If you are unsure about the financials, you can hire an accountant for this part of the plan. It is good to have an accountant right from the start. You will find that you will be making the odd phone call throughout the year anyway, so it is better to call someone who already knows a bit about your business.

A good business plan will include:

• business description
• marketing plan
• your CV
• development & goals
• financials

The following are examples of which areas to look at:

business description

• what service your business provides
• range of services you offer
• location of your business
• hours of operation

marketing plan

• your target market
• competitive strategies
• advertising
• promotions

personnel

• management
• type of staff you will need
• accounting
• legal
• qualifications, expertise

development & goals

• plans with completion dates
• product growth
• additional services
• business expansion

Financials

• cash flow forecast
• capital requirements
• earnings’ projections

To read more and find out about how to really get started in the hair extension business   Click for more information