Running A Business

How to Create a Business Plan for 2022

Dec 02, 2021 • 6 min read
Lendio 2022 Business Plan Checklist
Table of Contents

      According to a recent Kiplinger report, 2022 looks to be promising for small business: GDP is expected to grow 5.5% and consumer spending is forecasted to increase 4.7%. Things are looking up.

      That makes now the perfect time to start planning your strategy for the coming year. Start by creating a data-informed business plan now so you can hit the ground running.

      Checklist: create a 2022 business plan

      Ready to get started? Download our 2022 Business Plan Checklist.

       

      What’s a business plan?

      A business plan outlines your goals, helps you prepare for an unpredictable future, and can help you secure funding for accelerated growth. 

      How to use a business plan

      An annual business plan can serve multiple purposes.

      Drive goals: Your business plan puts annual goals front and center. Refer back to it while considering whether new expenditures contribute to a short-term or long-term goal.
      Acquire external financing: Most expansion requires capital. Lenders, investors, and other financiers will often want to see your business plan before making decisions.

      When to create your business plan

      Most experts advise creating a business plan annually, although some businesses update theirs more frequently.

      For 2022, a business plan may also position your business to take advantage of what economists predict will be a rebounding economy and year of growth for small business.

      What a business plan looks like

      What should your business plan look like? There’s no standard format for a business plan, but there are specific elements that lenders and financiers will want to see, including:

      • Forecasts for your industry and business
      • Data related to your current business/sales status
      • Industry overview, including customers and competition
      • Historical information about how your business fared during the previous two years and and how this will compare to the upcoming year

      How to write a business plan

      Start your business plan by putting to paper what you already know. Then research and analyze the rest. 

      Consider including the following sections:

      Goals for 2022: where you want to go and why
      Business Overview: what your business does, plus its history; for 2022, it may be a good idea to include the impact that COVID had on your business, too. 
      Market Analysis/Industry Analysis: where your industry has been, how it’s changed, forecasts for where it’s heading
      Competitive Analysis: who and what you’re competing against for customers and market share 
      Sales and Marketing Plan: how you’ll reach your audience and your projections for why your specific sales and marketing strategies will ensure you’ll meet your 2022 goals.
      Operations and Management Plan: how operations will change/evolve to reach your goals
      Financial Information*: 
      • Sales forecasts (best-case, worst-case, status quo)
      • Anticipated expenses; budget for expenses
      • Cash flow statement*
      • Profit and loss statement*
      Other: any other information you believe will be pertinent to lenders, investors, and financiers, or required to help keep you/your team focused on the year’s goals.

      *A bookkeeping app like Sunrise by Lendio can simplify this section’s work for you and help with future updates.

      When to use your business plan

      Check your business plan regularly. Since it’s a draft of your plan for the year, it can help remind you of critical factors and should influence important business decisions. An updated business plan is also essential when you apply for financing.

      Remember, however, that your business plan also a dynamic document that may need modifications from time to time through the year.

      Refer back to your business plan before making big expenditures—do they fit with your short- or long-term goals?

      Review your business plan frequently, update it annually, and follow the path to the future you’re building.

      Financing to Make Your 2022 Plans a Reality

      Not sure you’ll have the capital you need to turn your plans into a reality? You may want to consider financing.

      It takes about 15 minutes to fill out a short application with Lendio. You’ll then be matched with loans and other financing options that fit your current plans and your business.

      Start your application today.

       

       

       

       

      Disclaimer: The information provided in this post does not, and is not intended to, constitute business, legal, tax, or accounting advice and is provided for general informational purposes only. Readers should contact their attorney, business advisor, or tax advisor to obtain advice on any particular matter.
      About the author
      Lendio

      Lendio's team of experts is here to help you with every nook and cranny of your business. We'll make sure you have the best advice for financing, operations, management, hiring, and much more.

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