A business plan is essential to get your business off to a good start. Although it was extremely important to have a documented business plan ten years ago, this is no longer the case today, but it is still essential. In this article, I will guide you through each step in how to do a business plan.
What is a business plan ?
It is basically a written document that contains complete details about how a business (particularly a new one) is going to achieve its goals. Although, the business plan should be concise in size but specific in its facts and figures for an easy read. It comprehensively summarizes the objectives of a business and how it will realize those objectives to achieve a strong position in the current market environment.
Purpose of business plan
There are two primary objectives to make an epic business plan that will help you with investors and startup cash you would need. The first thing to keep in mind when planning is a vision of your business. A business map is actually your roadmap in the right direction and analyzes several aspects of your organization such as marketing, finances, sales, web design, manufacturing, etc. Secondly, you must capture the attention of your lender or venture capitalist. This is only going to happen if there is a realistic forecast for when your business will be able to start returning the investment. So you definitely need a perfectly drafted business plan.
How to do your business plan ?
A business guide website, SBA.gov, picked out a format that has the following recommended features:
Small Business Administration
We support America’s small businesses. The SBA connects entrepreneurs with lenders and funding to help them plan
- Executive summary: This is a brief section, after the title page, which tells your desire in regards to your business.
- Business description : Here, you must mention what your company does and description of the industry.
- Market analysis : An entrepreneur must thoroughly investigate and perform extensive research about all the aspects of the present-day market which in result lets you have clear ideas on how to build effective market strategies.
- Evaluating competitors: Studying about your competition gives you an advantage over them. It helps in determining their strengths and weaknesses within the market and how to have the upper hand.
- Organization and management: This section describes your company’s organizational and management structure. Include information about business owners, management team and its expertise, and other logistics of the organization.
- Service/product: Requires you to give details about the business products/services that are offered, its design and a chart referring to the development of the product.
- Finances: A report that has all the particulars such as balance sheets, financial statements, and other related documents. Also, new businesses must share the target for initial years and any prospective investor for the business.
- Appendix: It is an additional section that might include extra details- resumes, permits or product images. To devise a good business plan you must focus on 3 important rules; keep it short, know your customers/audience and do not get intimidated and you’re good to go.
According to all of the above information that I provided you with, now you know exactly how to do a business plan.
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