A business plan as part of the start of a business start-up - read 8 tips!

Business Plan is more than paperwork for a business start-up - it is a practical tool to help you get a clearer picture of your business and make financially sustainable choices. A well-designed plan will help not only to launch your business, but also to develop and grow it.

A business name is the simplest form of entrepreneurship, but profitability and clear goals do not come naturally. In this article, you will learn step by step how to a practical, easy to update and profitability-focused business plan.

Why should a business owner make a business plan?

Business entrepreneurship is often perceived as relaxed and agile, and it is often thought that no plan is needed if the business is not going to grow to a large size. In reality, a business plan helps:

• Define business objectives
• Assess profitability before you start operating
• Foresight - costs, risks, seasonality
• Develop customer acquisition and marketing
• Get funding, grants or start-up money (if you apply for it)

1. Summary - what is business about?

Briefly explain the basic idea behind the business:

• What are you offering? (Products or services)
• For whom? (Target group)
• How do you stand out from the competition? (Competitive advantage)
• Where and how do you work? (Location, digital, mobility)

Example:

I offer mobile home cleaning services in the Helsinki Metropolitan Area. The target groups are busy families and senior citizens. The service stands out for its flexible schedules and the possibility to order an ecological cleaning option.

2. Target group and customers

Describe who your ideal customer is:

• Age, place of residence, shopping behaviour
• What problem or need does the customer have?
• How does your product or service solve it?

The better you identify your customers, the more targeted and cost-effective your marketing can be.

3. Competition and market conditions

Analyse:

• Who are your main competitors in your region or online?
• How do their prices and services differ from yours?
• What can you do better, faster or simpler?

You can do a light SWOT analysis (strengths, weaknesses, opportunities and threats) to find out where to invest.

4. Marketing and sales

Plan how to make your customers aware of your service or product:

• What marketing channels do you use? (Social media, websites, Google, referrals)
• Need an online shop, booking calendar or blog?
• How do you track what brings in customers?

If you're not yet online, start with simple channels:

• Instagram account
• Google Business profile
• Free online publications and the use of customer stories

5. Resources and everyday tools

What you need to run your business:

• Tools and materials
• Workspace (home, rented space, mobile activities)
• Software (invoicing, accounting, customer management)
• Whether authorisation or notification procedures are required (e.g. hygiene passport, Valvira notification)

For example, a business owner can benefit from an e-invoicing service that makes it easier to manage finances and reduces administrative burdens.

6. Financial plan - profitability first and foremost

Profitable business is based on realistic estimates.

• Revenue: how much do you think you sell on a monthly basis? What is your target year?
• Expenditure: fixed and variable costs (e.g. fuel, software, materials)
• Pricing: does it cover the costs? Will there be a profit?
• VAT and taxes: be sure to include these in the calculation

Draw up a monthly budget and calculate how many customers or orders you need per month to keep your business profitable.

7. Risks and preparedness

Not everything always goes according to plan. Be prepared for risks:

• Sickness or temporary loss of working capacity
• Seasonal variations (e.g. summer holidays, slow months at the beginning of the year)
• Technical failure, delivery problems, unpaid invoices

The entrepreneur's risk management can include:

• Business insurance or accident insurance
• Similar to Kevyesti.fi service, which takes care of invoicing, taxes and offers the possibility of an advance payment
• A reserve fund for a few months ahead

8. Development plan

Draw up a short plan on how you will develop your activities:

• How are you expanding your services or customer base?
• How do you keep up with sustainability and digital trends?
• Can you scale up from part-time to full-time?
• Will you need partners, subcontractors or premises in the future?

Listing areas for improvement helps to maintain enthusiasm and clarify the direction for the future.

Summary

A well-designed business plan gives the business owner a clear view of profitability, growth and customer acquisition. It is not a bureaucracy, but a tool to achieve your own goals.

Use the plan also to help you monitor and update your business - it lives with your business.