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Ultimately a business plan is about how you plan to earn a profit. A winning business plan therefore needs to have elements of revenue creation and cost control.

To create revenue you need a product or service that people are willing to pay for. From the point of view of a business plan, the important thing to estimate is how much of that product (or service) you can sell and for what price. This is much harder than it seems, as there is no perfect information. Base your estimates on the best possible information, and, if you are planning to see a bank manager or investor with your business plan, make sure you have some figures to back up your estimate.

Cost control is easier - finding out how much the necessities for your business will cost is much easier than estimating potential sales. Simply identify the needs of you business (from accommodation to equipment) and get quotes. Wherever possible try to cut cost. If you find it hard to identify your potential costs, try "mapping" your process -> make a step by step plan of how your business will work, and work out a list of requirements using this map.

Combine the two, your expenses and your revenues, to see if you are making a profit. And keep revising!

Learn more about this author, James Jones.
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