Every startup or enterprise needs a business plan. A business plan is a document which states the goals and objectives of a business. It usually also lays out the methods that a company will use to achieve those goals. It is a written piece of paper, and it works as a guideline for all the employees that work in a firm.
When it comes to writing a business plan, you need to do it right. A single mistake can create problems when your employees are following the guidelines stated in the business plan.
Here is a simple guide that will help you create a business plan in the right manner. Also, this blog will answer any other questions that you may have about a business plan.
Who Writes A Business Plan?
The creator of the business plan is usually the people who founded the company. It can be an individual or a group of individuals.
When Do You Write A Business Plan?
The owner should write the business plan before you commence your business. It is a guideline for running a business, so make sure you have this document with you before you make your business public.
The Components Of A Business Plan Are:
It is a comprehensive summary of what your business is all about. It also focuses on the plans that you have for the business. It is not more than one or two pages long. All companies should write their executive summary in the end. It will benefit you as you know the goals, problems, and solutions, making it more appealing and informative.
It can act as a stand-alone, and most investors look at this page only. It should be concise and clear. Include these things in it:
- One line sentence that describes your business in the best manner
- In a line or two, tell what problems of the customer you aim to solve
- The solution to the problem that you are going with
- The competition and target market
- The financial plan
- How many funds do you require?
- How will you measure your goals?
In the last point, how you measure your goals, add some examples that show how interested your customers are in your product. That will impress an investor more.
P.S. Don’t write an executive summary or keep it concise if the business plan is for internal use only.
It includes the essential details of your business. It will include:
- What products do you create?
- What problems are you solving, and what methods are you using for the same?
- The USPs of your business. To set you apart from your competitors, mentioning it is imperative.
- It will include an in-depth analysis of your target market.
- Details of your competitors and your target market analysis
- Lastly, find out the details of your future products. If you plan to expand in the future, a brief description of the products you will be expanding into is crucial.
The summary already covers it in brief, here you expand with conviction.
As the name suggests, this section of the business plan focuses on your sales or marketing plans. How will you achieve your goals? Also, address the metrics you will use for measuring the success of your dreams.
Marketing and sales plan in the execution section include:
- How will you market your business or products? Your pricing model and activities that you would undertake to make it happen.
- How will you promote your business?
- How will you use social media and content marketing tactics for your business?
- Details of Public relations and advertising aspects of the business.
- How will you operate the business? What technology will you be using?
- What metrics for measuring the business goals would you employ?
Company And Management
- This summary section includes a run-through of the types of employees that the business is looking for. It will have:
- The team members and the role and responsibilities that they may have.
- The company overview will include a mission statement, the location of the business, legal details, and a bit of history.
- Don’t elongate this section of the business plan. It needs to be crisp and short. The mission statement will deal with what the business is trying to do and not take longer than a line or two.
The most intimidating part of a business plan, which includes:
- Sales forecast: What you expect the business to make in the coming two years?
- Personnel plan: How much are you paying your employees? Break it into groups like sales for an enterprise. Startups can list the individual salary.
- Use of funds: If you ask investors for money, have a section that explains how you plan to do that, and how you will use it?
- Other things to include are cash flow statements, income statements, and balance sheets.
Use extra spaces in the document for product images and more. Again, this is optional, but if you have some legal information or charts to show your plan into better light, use this space.
A business plan is imperative for the success of any business as it guides them towards the right path.