How to Create a Successful Micro Business Plan
Fri, 24 March 2023
If you’re considering starting a micro-business or want to elevate your current strategy, creating a micro-business plan is an excellent way to get the ball rolling.
What is a Micro Business in the UK?
According to Companies House, in order to be categorised as a micro-business in the UK, a company must meet at least two of the following requirements:
- Have a turnover of less than £632,000
- Have a balance sheet total of no more than £316,000
- Have no more than 10 employees
Small Business vs. Micro Business
In short, a micro-business can be defined as a type of small business. However, there are a number of factors that separate the two. These include:
- Micro-businesses must employ less than 10 people. In contrast, if a company has less than 1,500 employees, it’s considered a small business.
- Since their salary expenses are low, micro-businesses can still make a considerable amount of money, with a large portion of their revenue serving as profit.
- A small business will often operate from a small office or store, while a micro-business will generally operate from the home of the business owner –
saving them money on renting a commercial space.
- Small businesses have relatively small brand equity, while for micro-businesses this is practically non-existent.
Types of Micro-Businesses
- Online content creators
- Amazon affiliates
- Beginner freelancers
- Etsy shop owners
As long as any of the above have a registered company in their name, they will be considered a micro-business owner. Identifying as a micro-business owner can help you better face the challenges you’ll likely encounter while running your company. These challenges will differ from those faced by more prominent business owners.
Some of the obstacles micro-business owners often encounter include:
- Difficulty attracting staff
- Limited client reach due to lack of exposure
- Difficulty securing loans
- Difficulty expanding into new markets
At SME Loans, we’re pleased to offer micro-business funding from £1,000-£500,000. We understand that micro-businesses are a distinct business group with unique needs. Our online application is quick and easy to complete, and no fees are charged for applying. To find out more about whether you’re eligible for business funding, please get in touch. Call us on 01244 506279 or click ‘Apply Now’ to begin your application today.
The Benefits of Starting a Micro Business
If you’re considering starting a micro business, there are a multitude of benefits that come with choosing to follow this type of business structure. These include:
Shifting gears to match ever-changing business climates is significantly easier as a micro-business. With quicker turnaround times for decisions and strategies, micro-businesses find it a lot easier to adapt to change.
Low Overhead Costs
Because micro-businesses have fewer salaries to pay out, fewer outgoings and no rent expenses, overhead costs are kept to a minimum.
As a micro-business owner, you’re in control of the future of your company. Not only can business owners revel in the freedom of choosing their career paths, but employees can also embark on a similar lifestyle.
What is a Micro Business Plan?
If you’re full of ideas and feel ready to take the next step in your entrepreneurial adventure, now is the perfect time to create a micro-business plan.
Similar to a small business proposition, a micro-business plan provides a roadmap for starting and managing your business.
Structuring Your Micro Business Plan
Within your micro-business plan, you should strive to include:
- A business overview
This is a brief description of how your company will operate. It will also cover your broader business goals.
- A target market summary
This will include a breakdown of your target audience, an analysis of your competitors and what makes you unique.
- A marketing strategy
This is an outline of the social media channels you will utilise to connect with your target audience. It will also outline whether you will use things like email marketing, content marketing etc.
- Expected costs
This is a calculated estimation of your expected business costs, including those you’ll pay once and those you’ll pay regularly.
- Predicted revenue
This is an estimated figure of how much your business will earn from every sale, including how frequently you expect to receive sales.
- Key objectives
This is a summary of the steps you’ll need to take to complete your objectives, and when you want those steps to be completed. For example, one of your targets could be to make eight sales within three months.
Why Choose SME Loans For Micro-Business Funding?
If you’re a micro-business looking to upscale your capabilities, we can help. At SME Loans, we can provide reliable, effective micro-business loans through a variety of financing options, including Unsecured Loans, Merchant cash advances and Small Business Loans. Our simple, straightforward requirements are that your micro-business must:
- Be registered and trading in the UK
- For business loans, have a minimum monthly turnover of £5000
- Have been actively trading for 6 months
- Have a director/owner who is over 18 years old.
To find out more about how to structure a micro-business plan, or to enquire about the loan application process, please get in touch. Call us on 01244 506279 and speak to one of our helpful, friendly advisors today.