A business plan is a guide of the strategies a business man or woman plans to use in order to reach the set goals. The more time you spend in coming up with a business plan and also updating it the more dividends you are likely to receive in the long run. A business plan follows generally accepted guidelines in the formation. A business plan is of great significance not only in guiding you how to conduct your business but also in the times of borrowing a loan. Many people think that formulating their own business plan is a great challenge but the truth is you can formulate a good business plan.
7 Steps to Write Perfect Business Plan
Step 1: Research
When writing a business plan you should research and also analyse your product, your market and your objective expertise. It is recommendable to spend twice as much time researching and thinking as you spend actually in writing the business plan. In order for you to write a perfect business plan you must know your company very well, your competition and the market intimately. In short it is s your responsibility to know everything you can about your business and the industry that you’re entering and this can only be achieved through qualitative research.
Step 2: Determine the purpose of your plan
A business plan we have already seen that it is a written document describing the nature of the business, the sales and marketing strategy, and the financial background, and containing a projected profit and loss statement. Despite the main purpose a business plan can serve several different purposes. It is for that reason important to note that in case you would like attract investors your business plan will have a different purpose thus, you will have to write a business plan that targets them do it should be clear and concise as possible. It is highly recommendable ensure that you clearly define your goals well.
Step 3: Create a company profile
The organization’s profile includes the past of your organization, the products/services offered by the organization, the market you are targeting, the resources, and your way of problem solving and the uniqueness of your organization. The profile of the company can be found on the official website of the company and it is used to attract potential customers and investors. Your company’s profile can also be used to describe your company in the business plan. The profile of the company is not only an essential component of your business plan but it is also one of the first written parts of the plan.
Step 4: Document all aspects of your business
For the cases whereby you would like to attract potential investors in your organization, you should put in mind that the investors want to be assured that your business is going to bring income to acquire their money and profit too. For that reason the investors will be interested in knowing everything pertaining your business. In order to help with this process, you should document everything from your expenses, cash flow and industry projections. You should not also forget the details which seem minor like your location strategy and licensing agreements.
Step 5: Have a strategic marketing plan in place
A great business plan should clearly present the strategies which will be put in place in order to achieve the set goals and objectives and also an aggressive marketing plan. In the marketing plan objectives sections, you mainly focus on what and the why of the marketing tasks ahead. In the section of implementation you mainly focus on the practical, sweat and calluses areas who, where, how and when. To achieve the market objectives will have costs definitely and for that reason your market plan should have a section in which you will allocate budgets for each planned activity.
Step 6: Make it adaptable based on your audience
You should take into account the interests of all the people interested in reading your plan because the potential readers of a business plan are a varied bunch, ranging from bankers and venture capitalists to employees. Due to this reason you should make sure that your plan can be modified depending on the audience reading your plan. Despite this it is recommendable that you keep these alterations limited from one plan to another. For that reason when sharing financial projections, you should keep that data the same across the board.
Step 7: Explain why you care
Your plan should that you are passionate and dedicated and show that you actually care about your business and the plan regardless of whether you’re sharing your plan with an investor, customer or team member. In this section you should discuss the mistakes that you’ve learned, list the problems that you’re hoping to solve, describe your values, and establish what makes you stand out from the competition.