Creating a business plan
What is a business plan?
A business plan is a written document that is a guide and a roadmap. It describes in detail how a business defines its objectives and how it will achieve its goals. The business plan will layout a roadmap for the firm from Marketing, financial and operational standpoints
What is the purpose of a business plan?
A business plan is essential for startups but is also an important tool for established businesses. The purpose of a business plan is to maximize profits for its owners while maintaining a corporate social responsible
Steps to take when writing a business plan
1. Executive summary
- This section will outline the key points of your plan. The goal here is to explain what your company does and why it will be successful. The company mission statement should be mentioned here, i.e., what your goal is as a business
2. Business description
- This section leads off the main portion of your business plan. In this part you will go more into detail on what your company does and what solutions to bring into the marketplace. You will get into details about your product or services you are developing and who your target customers are. You can also include a brief history of your company.
3. Market analysis
- In this section you need to have a good understanding of your industry outlook and target market. Research on what other businesses are doing and what their strengths are, then you need to ask yourself if you can do better.
4. Organization and management
- How will your business operate and who will be the key decision makers, this section will tell the legal structure of your business and the management hierarchy.
5. Products and services provided
- In this section you need to outline what your business will produce and how will it benefit customers? What kind of research and development have you already put into your business and what results are you getting or expecting to get?
6. Financial Outlook
- Here you lay out your financial projections for your business. If your business is already up and running list any cashflow numbers for the past several years. How does your balance sheet look like? What are your quarterly projections going forward? You need to be very thorough and as accurate as possible in presenting the financial data
- You close your business plan with a pitch for funding and list any supporting data, graphs and charts that will booster your pitch