A well-written business plan can help maximize potentials and minimize overheads, liabilities, and risks associated with any proposed business venture. It also shows exactly what revenues are expected and when to expect them, what overheads and expenses will need to be paid and exactly when they will be due.
What Is Business plan and How Does It Work?
A business plan is designed to plan in advance how a proposed business will be started, implemented and managed. In short, it is a working blueprint of the entire operation of the business. It contains all that the feasibility study has in addition to specific deadlines, detailed budgets with monthly and seasonal forecasts, letters of intent, resumes of staff, background, competition, strengths and weaknesses, worksheets and full notations, appendix and all related and required documents that will be referenced as the business is being developed.
Best Studies To Writing a Good Business Plan
In order to write a good business plan, here are some guidelines that can be of help:
- Keep the plan short, focused and readable;
- Consult as widely as possible;
- Solicit help from appropriate sources such as accounts or bankers or management consultants;
- Point out the obvious benefits of the product or service;
- Address fully any possible bones of contention;
- Outline the qualities and skills of the management team;
- Do not make assumptions on behalf of the readers;
- Do not be too optimistic in estimating income potential;
- Avoid use of long words, technical jargons, or over complicated sentences;
- Highlight critical risks and success factors peculiar to the business;
- Identify the target market;
- Keep the plan written in the third person. Use “he”, “they”, or “them”, instead of “I”, “We”, and “Us”.
11 Simple And Well Detailed Steps In Writing A Business Plan (2018)
As a general rule, a business plan should be about 25 to 30 pages, focusing strongly on the management and financial elements of the business. Note that the executive summary should not exceed two pages, normally, written last but appears first in the final plan. Below are the 11 easiest steps involved in writing a business plan:
#1. Set The Context
Here, you are to describe the background of the business, product, or service and a brief history of the organization; who the customers are; past performance of the organization (if the organization is an existing one); and any key factors that might dictate the success of the business.
#2. Define Business Objectives
Here, you are to develop a list of short-term, medium-term and long-term objectives. Note that measurability and deadlines are very important.
#3. Perform A Market Analysis
You are to persuade or convince the reader or investor that the product or service will secure a substantial market. Your market analysis should include: a description of the overall market and the specific market targeted; detailed information on current and proposed customers; names of leading competitors, market share, and alternative products or services; and of course, market influences, which include economic trends, seasonal fluctuations, legislation and social factors. Your target market is and the changes that may affect the market.
#4. Propose Your Approach to Marketing (The marketing plan)
Here, you are to describe your strategy and it should cover the following:
You are to touch on all aspects of researching, developing, producing, and delivering your product or service. You to describe the research, development, and production processes with the expected cost of raw materials, labor, and plant and equipment. It should also include a contingency plan for possible scenarios that might disrupt your Operations.
Here, you are to describe your strategy and it should cover the following:
- The image of the organization you wish to convey;
- Your product positioning;
- The key features of the product that differentiate it from others;
- The four Ps of marketing.
#5. Describe Your Plans for Development and Production (The operations plan)
You are to touch on all aspects of researching, developing, producing, and delivering your product or service. You to describe the research, development, and production processes with the expected cost of raw materials, labor, and plant and equipment. It should also include a contingency plan for possible scenarios that might disrupt your Operations.
#6. Clarify The Current Financial Situation (The Financial plan)
Here, you are to state exactly what is required of investors and lenders. The financial plan should contain data documenting of past, present, and projected performances, which should include startup costs, profit and loss statements (income statements), cash flow analysis, and balance sheets.
Repayment of the principal plus the interest will be of key interest to investors and lenders, so include break-even projections. It is also important to demonstrate how sound financial control will be exercised over borrowed and incoming funds.
#7. Demonstrate That The Management is Committed And Capable
You are to convince investor and lenders of your strengths and skills. An organization chart that shows the management capabilities, as well as responsibilities, should be presented. If there are weaknesses, you to indicate how you propose to deal with them.
#8. Describe The Ownership Of The Organisation
An investor or lender will need to know the owners of the structure of the organization, whether it a sole proprietorship, a partnership or a limited liability company. You are to show how much investment has been made and by whom.
#9. Discuss Critical Success And Risk Factor
You are to present critical risks and problems. Do not omit actual and potentially negative factors. Also, provide a self-account of critical success factors.
#10. Conclude On A Positive Note
You are to summarise the key features such as strategic directions, strengths and unique benefits, realistic projected sales and returns. Also, include a proposed timetable of events to demonstrate sound planning. In conclusion, write a strong conclusion that leaves the reader with a positive and lasting impression.
#11. Provide An Executive Summary
An executive summary is usually written last but it appears first in the final plan. It should include the unique features of product or service; the short-term, medium-term and long-term objectives of the organization; the benefits that the product or service offer to the target market; the qualities and skills of the people who will make things happen; a financial statement of assets, sales, and profit expectations and how much capital is required; and as a conclusion, a statement of return for the investors.
Format Of A Typical Business Plan
Find below the format for writing a good business plan (business plan examples):
#Title Page
#Table of contents
#Executive summary: Usually written last
#Business Description
• General background
• Mission
• Key success factors
#Marketing Plan
• Marketing research and analysis
• Target market
• Market size and potential market share
• Competition
• Marketing strategy
#Management Plan
• Management team - Key personnel
• Ownership/organization structure
#Location
#Operation plan
#Financial Plan
• Financial forecasting
• Profit and loss
• Cash flow
• Break-even analysis
#Financial risks and success factors
Now you know how to easily write a great business plan step by step without sweat and move your business from zero to hero.
Share it with friends on Social Media and have a great time. If you have questions, feel free to drop.
Here, you are to state exactly what is required of investors and lenders. The financial plan should contain data documenting of past, present, and projected performances, which should include startup costs, profit and loss statements (income statements), cash flow analysis, and balance sheets.
Repayment of the principal plus the interest will be of key interest to investors and lenders, so include break-even projections. It is also important to demonstrate how sound financial control will be exercised over borrowed and incoming funds.
#7. Demonstrate That The Management is Committed And Capable
You are to convince investor and lenders of your strengths and skills. An organization chart that shows the management capabilities, as well as responsibilities, should be presented. If there are weaknesses, you to indicate how you propose to deal with them.
#8. Describe The Ownership Of The Organisation
An investor or lender will need to know the owners of the structure of the organization, whether it a sole proprietorship, a partnership or a limited liability company. You are to show how much investment has been made and by whom.
#9. Discuss Critical Success And Risk Factor
You are to present critical risks and problems. Do not omit actual and potentially negative factors. Also, provide a self-account of critical success factors.
#10. Conclude On A Positive Note
You are to summarise the key features such as strategic directions, strengths and unique benefits, realistic projected sales and returns. Also, include a proposed timetable of events to demonstrate sound planning. In conclusion, write a strong conclusion that leaves the reader with a positive and lasting impression.
#11. Provide An Executive Summary
An executive summary is usually written last but it appears first in the final plan. It should include the unique features of product or service; the short-term, medium-term and long-term objectives of the organization; the benefits that the product or service offer to the target market; the qualities and skills of the people who will make things happen; a financial statement of assets, sales, and profit expectations and how much capital is required; and as a conclusion, a statement of return for the investors.
Format Of A Typical Business Plan
Find below the format for writing a good business plan (business plan examples):
#Title Page
#Table of contents
#Executive summary: Usually written last
#Business Description
• General background
• Mission
• Key success factors
#Marketing Plan
• Marketing research and analysis
• Target market
• Market size and potential market share
• Competition
• Marketing strategy
#Management Plan
• Management team - Key personnel
• Ownership/organization structure
#Location
#Operation plan
#Financial Plan
• Financial forecasting
• Profit and loss
• Cash flow
• Break-even analysis
#Financial risks and success factors
Now you know how to easily write a great business plan step by step without sweat and move your business from zero to hero.
Share it with friends on Social Media and have a great time. If you have questions, feel free to drop.
