How to write a Business plan
Chances of successful business are mainly depends on having good business plan otherwise your business will be dump in an early stage. People think that if you have good idea then you really make a big business but it’s not always true. If you don’t organize and specified your all business steps then your dream will not come true or may takes longer time.
What is business plan?
Business Plan is a document that sets out the business strategy, goals and how the business is going to achieve those goals.
Why I need that?
- To help grow your business.
- To commit to a particular course of action.
- To manage cash flow.
- To focus on your goal
- To attract investors.
By failing to prepare, you are preparing to fail
Step 1) Executive Summary
This section is shows that
- Where your company is,
- Where you want to take it,
- how your business idea will be successful.
If applying for a loan, to know how much you want, precisely how you are going to use it, and how the money will make your business more profitable, thereby ensuring repayment.Many investor some time only read your executive summary so it’s good to right proper executive summary to attract investors.
Step 2) Company Description
It is also an important part, because it will help to attract partners.
- Mission Statement
- Describe the nature of your business.
- Explain the competitive advantages that you believe will make your business a success such as your location, expert personnel, efficient operations, or ability to bring value to your customers.
Step 3) Service or Product Line
The next part of your business plan is where you describe your service or product. It is important to learn that how your service or product is different or better than others.
- About your product
- How you manufacture it? Or what you need for that ?(primary scours, employees)
- Details about your product’s life cycle
Step 4) Market Analysis
Market analysis section is essential for you than others because this section is important to know you that how you can get potential customers.
- Who your costumers are?
- Information about Your Target Market.
- How much market share can you gain?
- Analysis of your competitors.
- How your industry is growing?
Step 5) Strategy & Implementation
Strategy & Implementation should include some different strategies:
- A market strategy.
- A growth strategy. This strategy for building your business might include: an internal strategy such as how to increase your human resources, an acquisition strategy such as buying another business, a franchise strategy for branching out, a horizontal strategy where you would provide the same type of products to different users, or a vertical strategy where you would continue providing the same products but would offer them at different levels of the distribution chain.
- Communication strategy. How are you going to reach your customers?(it will your salesman, website ads etc)
Step 6) Organization
This section should include: your company’s organizational structure, details about the ownership of your company,
- Organizational Structure
- Ownership Information(Names of owners, Percentage ownership Extent of involvement with the company Forms of ownership, Management Profiles etc)
Step 7) Financial plan
This section is also an important for investors. Most of the time, investors will want to see what you expect your company to be able to do within the next five years. Each year’s documents should include
- Forecasted income statements,
- Balance sheets,
- Cash flow statements,
- Capital expenditure budgets.
- Estimating startup costs
- Preparing financial statements
- Developing a cash flow analysis
- Breakeven analysis
- Borrowing money for your business
Step 8) Terminal remaining planning
In this section you should include terminal part or appendix it is shows:
- Credit history (personal & business)
- Resumes of key managers
- Product pictures
- Licenses, permits or patents
- Legal documents
- Copies of leases
- Building permits
- List of business consultants, including attorney and accountant