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Writer's pictureAna Neve

What is a Business Plan and why do I need one?

Updated: Apr 11, 2021

You know you are a talented artist. Why aren't you getting the clients you want? Maybe it's time to look at your business plan.

There’s a pretty good chance that you’ve heard of business plans before, but it’s also possible that you think about it as a long tedious nonsense document prepared for a big company. And while those do exist, there are different templates and outlines used for business plans that actually work and can help you with your business regardless of its activity and size


The first thing to point out is that there’s no one right way to do it. However, it is very important to have one. Whether you are a freelance entrepreneur or an international corporation, a business plan is one of the keys to success. In this blog post I'll explain what exactly is a business plan and why you need one.

In case you don’t know much about me, I work mainly with small and medium creative businesses, so I will be focusing this post to this sector. I started working in this area when I saw a lot of my very talented and artistically gifted friends struggle because they had no idea of how to strategise their work and make an income from their craft. My job is to help them with the business side of things so they can excel in what they know best. That being said, let’s dive into the good stuff.


What is a business plan?

In the simplest terms, a business plan is the blueprint of your business.

A business plan is a document that contains all the main information about your business, what you sell, how it works, who your customers are, etc. The categories might be slightly different for everyone depending on what you offer. Regardless of the size of your company, even if you are a freelancer, sole trader, or any other type of solo work, you are a business and what you do can be treated as such. Not having a team is no excuse for not writing a business plan!


Now that we have very briefly covered what a business plan is, I’ll go over what it is NOT. I find this useful as it can sometimes seem an abstract concept or it gets daunting when it’s time to write one. Here are all the things that a business plan is not:


· An overly complicated document: there are businesses that are not as straightforward as others, but the business plan should be easy to understand

· A list of what you do: while your products and/or services can and should be included in there, a product list is not enough, there should be an understanding of what they are, who they are for, etc.

· A daily to-do list: I know the word “plan” can trick us into thinking it is a to-do list or a series of actions we need to do, but in this context we are looking at long-term strategies rather than short-term actions.

· A place to report sales: there may be exceptions to this if you are looking for investment and a detailed report is asked of you, but as a general rule the business plan will not focus on your completed sales, but rather the steps needed to achieve those sales.

· Set in stone: the business plan is there for you, and it can be amended when needed. In fact, it is god to update and change it as your business develops.


Now that we have established what we don’t see in a business plan, let’s look at the affirmatives! A business plan is:


· A template for your business: it provides a guide for all the steps you must consider to reach your medium and long term goals.

· Flexible: Few things ever go exactly according to plan, so changes, modifications and tweaks are all valid. As your business grows and develops, your business plan adapts as well.

· Comprehensive and simple: most people will be in need of a business plan to organise themselves and have a more established vision of their company, so it needs to make sense to you, the owner. However, when seeking investments or partners, it needs to be easily understood by everyone else. Keep it simple but effective!


Why do I need one?


The most straightforward answer to this question is “because it is there to help you”. There can be many reasons why it is a good idea to have and define a business plan, but the main one is that it is a tool that will help you keep your business in tip-top shape. Imagine you are an illustrator starting your own business with no idea how to get clients. When asked what you do, can you give a straight answer? If your answer is a generalised “Illustrations”, it is not very likely that a potential customer orders from you. Artists often take “any job” because the arts are unfortunately under-paid and anything that pays the bills is good. It might be inevitable that you end up taking the odd job you don’t enjoy, but if you firmly state you “transform any photograph into a customised illustration that can be printed into stickers, posters and cards” you are immediately more likely to get the clients you want. That will come from sitting down and working on your business plan! Once you understand your offer, you can work on all the subsequent areas of your business plan and solidify your standing in the market (aka be a force to be reckoned with).



I hope this post has been helpful! I would love to hear your comments below!


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