How to write a killer business plan (1/2)

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Whether you're selling Mr Whippy to day-trippers or private jets to sheikhs, a clear set of goals can help your new venture from nosediving six minutes in.

WHY BOTHER?

Would you start building a house without plans? Or dismantle your carburetor without some book-based back-up from Mr. Haynes? No, and yet, according to business mentor Chris Kaday, around 90 per cent of business start-ups 'forget' to get anything down on paper. "For some reason, people find it hard to do," says Kaday, "but you've got to have one, and it's got to be in writing."

Dragons' Den mainstay - and multi­millionaire, of course - Peter Jones agrees: "A business plan is crucial. You need it to make sure that you have a direction, prioritise tasks, manage goals and attract investment"

And remember to ensure that everybody is clear on who owns what - goodwill isn't enough if a partnership runs into trouble. 02 and the Law Society have drawn up a checklist for a partnership agreement (like a pre-nup). The 'SME-nup' can be downloaded at 02blueroom.co.uk.

WRITE A MISSION STATEMENT

There is no hard-and-fast rule about how to create a business plan, but many people, including property millionaire Gary McCausland, author of How To Make A Million From Property, prefer to begin with a bold statement of intent. "I like to think big in my mission statements," says McCausland, founder of the Richland Group, "as if I have plans for it to be the biggest corporation in the world." And remember, some of the biggest companies on the planet started out in bedrooms and garages. "Steve Jobs' mission statement from day one was, 'I want to be the biggest computer company in the world'," he adds, "and that's pretty much what he's done with Apple."

KNOW YOUR PLACE IN THE MARKET

"You have to know what your proposition is," says Kaday. "What exactly are you offering? And be specific - maybe you're going to supply kitchens to upper-class people. Write down why people would buy this product or service, why they would buy it from you, and how what you're doing is different to everyone else." Kaday says that "everyone and his wife" now has a back-room enterprise flogging printer ink to eBay customers and turning over a few hundred quid, but wonders why anyone would take on the likes of PC World, "You have to have a unique selling point," he says. "What's your niche? Maybe you're a niche within a niche."