How to start writing your business plan
Learn everything you need to know about how to start writing a business plan from scratch
Writing a business plan from scratch may seem like a daunting task, but it doesn’t have to be. Following a clear structure will help you to visualise your goals and objectives.
A standard business plan usually includes the following elements:
Executive summary
Mission statement
Background
Competitor analysis
Marketing strategy
Operations
Financials
The content of each section should be concise and specific, providing a short overview of the main points you want to get across in a clear and professional tone. You can save the details for the operational and marketing plans.
We also advise reviewing your plan regularly to make sure you stay on track. You may find that your initial plans and provisions need to shift as your business grows. But the great thing about a business plan is it can be flexible, and you can adapt and update it to flow with the times.
Remember, a business plan is a continuously evolving document that is tailored to your business, so keep it in a format that is easy to locate and simple to amend.
In simple terms, an executive summary is a short section at the beginning of your business plan that gives an overview of the main points contained within it. It introduces your plan to the reader, so it's important it is concise, clear and well-constructed.
Start by writing a statement explaining the rationale for your business idea. Consider touching on any market trends, such as menopause or regenerative treatments or the growing demand and acceptance of non-surgical aesthetic treatments, but don’t go into too much detail here. You can do this in step 3, the background section. Or you can look at demand or demographics in your geographical area.
Business is about identifying a ‘problem’ people have and providing the solution, so outline the opportunity you have identified, what you can do about it and what your competitive advantage is. This section should be no more than two pages long. You may find it easier to write it at the end once you have drafted the more detailed sections of your business plan.
Your mission statement defines and communicates the purpose of your business. It’s like your ‘elevator pitch’ and should illustrate what success means to you in three to four sentences. It can be helpful to do some research.
Why not read the mission statements of other aesthetic professionals or businesses you admire for inspiration? But don’t be tempted to just copy someone else’s work. Your mission statement is about you. It should come from the heart and focus on what success looks like for your own business.
Are you, for example, offering state-of-the-art treatments in a luxurious environment or catering to the needs of busy professionals who require flexible appointments?
The important thing to think about with business plans is, first of all, what you are trying to achieve. What market are you going to be going into? Are you looking at the filler or botulinum toxin market? Are you setting up a clinic or looking at a mobile practice? Are you looking for female customers or do you want to target men? Do you want to be a local business or are you looking to have a much wider stretch? For me with Hamilton Fraser, we first thought about the type of business that we wanted to be. For example, we wanted to be a professional business that was very customer-centred. This vision or ‘mission statement’ becomes your USP. It is important to articulate that because the market is very tough out there, and there are a lot of practitioners all vying for the same business.
This section is your chance to go into a bit more detail and background about the aesthetics sector, highlighting any relevant industry trends and providing a short summary of how your business fits within the industry in your geographical area.
Our annual survey showed that regenerative procedures and 'prerejuvenation' (treating younger patients with preventative treatments) were the most popular trends, indicating a demand for treatments using the body’s own healing capabilities and a new generation of patients finding their way to the aesthetics market.
You can also include information here about your own background and training in aesthetics. As a business owner, it is important to convey that you have expertise in your field and demonstrate your commitment to continuous professional development as your business grows.
It is also vital to make sure that you are up to speed with developments in the rapidly evolving aesthetics sector. This can be achieved by carrying out research online and via social media, as well as by attending conferences and exhibitions as well as virtual events, which have become the norm since the pandemic and enable you to learn, ask questions and network with like-minded professionals.
Whether you plan to trade as a company or a sole trader, building a network of peer support around you is invaluable as it will provide you with a source of guidance to help with both the running of your business and any complication management issues that may arise.
Many aesthetic practitioners work alone. Our recent survey revealed that 55% worked solo, so connecting with other practitioners who may be experiencing similar business challenges can help you feel more connected as a business owner.
While the growing demand for aesthetic treatments is a positive thing for the whole sector, it does mean that aesthetic businesses operate in a fairly saturated and competitive market. For this reason, identifying your unique selling points and how you can stand out from competitors is crucial. A key part of this is carrying out a thorough competitor analysis.
You also need to consider the patient demographic that you will be targeting so that you can tailor your offering when it comes to your marketing strategy.
One of the most important things is your marketplace and your competition. Who are your competitors? What are they doing? What is their pricing structure? What are the qualifications of those individuals?
In a competitive marketplace, successful marketing is key to connecting with existing and potential customers and building your business’s reputation.
Your business plan should provide a high-level overview of your marketing strategy, but you will also need to create a separate, more detailed marketing plan.
This section should also include information about the products and services you will offer, your plans for pricing and promotion activities and the premises that you will operate out of.
Define your target market and identify how your sales and marketing strategy will cater to their needs: Refer back to your unique selling points and lay out how you intend to take them to market, retain and attract patients to grow your market share. This will involve defining your target market and summarising how your sales and marketing strategy will cater to their needs
Identify the products and services that your business will be offering: Next, you need to identify the products and services that your business will be offering, along with their benefits. Explain why you have chosen the treatments you have included on the menu. Is this based on research into what your key demographic is looking for? In addition to including the benefits, it is also advisable to acknowledge any potential disadvantages or risks. Identifying these early on can help to produce a well-rounded plan that can be adapted to adjust to challenges along the way
Pricing: How you price your treatments will vary depending on where your business is located in the country. For example, if you are based in London or another major city, it is likely that the local price of treatments will be higher than in a smaller suburban town. Do some research into what other similar clinics or businesses are offering in order to make sure you are competitive
Offers and promotions: Another thing to include in this section is your plans for any promotions. Will you offer discounts or packages to entice new customers? There is nothing wrong with this approach, but when advertising a promotion, it is important to be aware of the parameters that exist and make sure that you comply with them by referring to the Advertising Standards Agency (ASA)
Social media: The aesthetics industry is particularly active on social media platforms such as Facebook, Instagram and TikTok, so don’t forget to include a social media plan in your digital marketing strategy and marketing plan and reference it in this section of your business plan.
A lot of these tools work very well for education, so if you are specialising in a particular treatment, you can explain the benefits of it, why this is better than the alternative and why a patient should come to you as a practitioner.
Premises: If you are planning on opening your own premises, then an effective way to raise awareness of your business in the local community can be to hold an open day or evening. This gives you a chance to invite potential clients and local media to see the clinic and the range of treatments you will be offering.If you are renting a room within a clinic, salon or leisure centre, then you should focus on identifying ways in which you can tap into their existing client base (being mindful, of course, of any GDPR implications)
Location: There are a number of options available to you when it comes to choosing the physical location of your business – you may intend to work from your own home, as a mobile practitioner visiting patients’ homes, renting rooms within existing clinics or setting up your own clinic. Your physical location may evolve as your business grows; for example, you may begin by renting a room in a salon/clinic to keep costs to a minimum while you build up your own reputation. You may then plan to expand into your own premises once you are more established. Although your strategy may change as your business grows, it is important to mention your intentions in your business plan so that stakeholders have a clear idea of your aspirations and you can make sure that you are working towards your ultimate goal
Process: The marketing component of your business plan can also touch on your processes; for example, you may decide that your processes should be customer-focused. In this case, you might prioritise building rapport with potential clients during the consulting process or focusing on incorporating patient wellness services in your practice in order to establish a reputation for good customer service and to benefit patients' overall well-being
The operations section of your business plan is where you cover details concerning your day-to-day operations, such as hours of business, the equipment you will require and how you will keep track of inventory.
If you’re planning on employing staff, you should include a summary of how you plan to recruit and manage your team here.
Also, highlight any internal procedures that you anticipate you’ll need to implement when the business is up and running. These are not set in stone and will most likely evolve, but it is a good idea to note them in your business plan in order to maximise transparency and make sure that you have everything covered.
Such procedures include your consulting and consenting process, your approach to patient selection, how you will deal with complaints, your appointment booking, payment and record-keeping systems, and stock and waste management. It is also important to consider your obligations in relation to GDPR compliance, as you will be holding confidential client information.
Don’t forget to display your terms and conditions clearly – it’s important to be transparent with your clients at all times. This is also crucial if there are any subsequent issues relating to payments for treatments/services.
Building a support network, both online through social media and offline at industry events, can give you a source of ongoing guidance and an outlet to exchange experiences when it comes to best operational practices.
Last but certainly not least, you must include a financial section in your business plan.
This should provide facts and figures showing how fast you expect your business to grow and how you plan to fund that growth.
You will also need to demonstrate how you will monitor and report on the finances.
If you are starting out, you should include an assumption of start-up costs, taking into account the purchase cost of any equipment or fixtures, wages, benefits, lease and utility costs, insurance and other expenses such as membership of a professional body.
In addition, you should include an estimate of earnings based on your market research and likely market share for the first three to five years.
The financial section of a standard business plan includes four key financial statements:
Cash flow statementThe cash flow statement shows how much cash you will need to meet your obligations, when that cash is going to be required, and where it will come from. It shows a schedule of the money coming into the business and expenses that need to be paid. These figures go into a profit and loss (P&L) statement, which is generated on a monthly, quarterly or yearly basis.
Break-even analysisA break-even analysis is a composition of costs and sales revenue. Costs are broken down into variable costs and fixed costs. Variable costs fluctuate from month to month and include the products you will need to perform treatments, utility costs, operating expenses, equipment and employee wages.Variable costs can be direct or indirect. Direct costs are those that are directly attributed to production, such as wages and products like botulinum toxin. Indirect costs are not directly attributable to production, such as the maintenance of any equipment.
Balance sheetThe balance sheet outlines a business’s assets, liabilities and equity. Assets include cash, inventory, accounts receivable, and equipment and fixtures owned by the business. Liabilities include any loans or outstanding bills.
Equity is the amount of worth a business obtains by amortising loans and the worth of company-issued shares or stock. Assets must be equal or balanced to the company’s liability and owner’s equity.
Income statementAn income statement is a scorecard based on the financial performance of your business that reflects a balance between sales and expenses. It is calculated by combining earnings, business expenses, capital, and inventory and raw material costs. Using these financial categories, an income statement will show a net profit or net loss, usually over a company’s fiscal year.
The key points to remember when putting together your business plan are:
Be concise – potential investors should be able to understand what your business is about from your plan
Be specific – explain how you are going to deliver your plan
Know your market – show that you understand your target audience and competitors
Be clear about how you are going to make a profit
Your plan will be essential when it comes to securing loans or investments, but it also provides a useful framework to help you understand your objectives and how you are going to deliver them.
Most importantly, have fun creating this blueprint for your business. It’s all about planning for a successful future and seeing it in black and white can invigorate your passion for your aesthetics business.
No matter what is going on around you, things are always changing, so there really is no time like the present to plan for the future success of your aesthetics business.
“For me, having a business plan was very important in terms of securing investment. Previously, a lot of aesthetic clinics were self-financed, but I think more and more we've seen interest from investors in this space. It's becoming an attractive option for investors, and it's now a much more established industry than when I was pitching 11 years ago.
“Having a roadmap is good in the initial phase of starting a business. I viewed mine as a roadmap of where we were going and what we hoped to achieve. It was helpful to have targets as well because we based our financial targets for the first year or two and our growth targets on them. “Once you have secured investment, you have to be fluid and flexible because there are things you'll have no control over, such as family circumstances or a global health pandemic! We had planned to open another clinic in 2021, and then COVID hit. Obviously, that's something that's being delayed.”
To find out more about Dr Leah Totton’s career in aesthetics and the lessons she has learned as an entrepreneur, read our article ‘Life as an entrepreneur: A conversation with Dr Leah Totton