Writing a business plan shouldn’t be difficult for you. With this step by step guide, you are going to learn how to write a business plan with great results.
Table of Contents
Components of a business plan
If you are starting up a business plan for money to grow your business or to check out if your idea works, you need to cover the main topics of a business plan.
This is mainly for details about your business plan, and this is where you should focus first in your busines.
This is where you take the opportunity to drive more sales in your business, and to know about your competitors and more about your sales in market field.
Here in execution it covers how you will use your opportunity to make it into business, it covers your operations and success
In your business, another thing to consider is about your capital in starting of your business.
How to make a business plan easier
A business plan should not be length because you will need your business plan to be read.
You should know that nobody is willing to read a hundreds plus page or even fifty page of a business plan.
You shouldn’t be shy or start feeling intimidated because most businesses owners aren’t experts, they don’t have degree in business.
Writing a business plan should not be a big deal for you.
This the part where your company is being introduced, and explain more of the purpose of your company.
Excecutive summary is the first chapter of your business plan and it’s the first thing people do read.
As you know the details of your business plan, you will be more prepared to write executive summary.
Your executive summary should be clear or concise as possible.
You should cover the key highlights of your business, and not into much detail.
It should have one or two pages, mainly quick in reading that put more interest to the investors to feels eager to hear more.
Try to have a tag line by writing your business name, with a short sentence of what your business carry out, at the top of the page.
Try to summarize the problem you are solving in market field.
You can take note that all business are solving problems for their customers.
In solution You should also address the problems which you have specified in the market field.
Who are your target market, or your customers?, it is good for you to specify.
In competition, how are your target market solving a problem currently. Every business has competition and it’s a must you provide to overview in the executive summary.
Company overview and it’s team
you should give a short overview of your team and a brief explanation on how you and your team are capable to take your business idea to market.
Normally, investors are more pleased in team, even more than ideas because even a great idea do need great execution to become a reality.
In financial summary, you should highlights the main aspects of your financial plan.
You should have a chart that do shows your plans of sales, expenses and profitability.
Funding requirements: if your business plan is to get a bank loan or you are asking investors or venture capitalist for a funding, you should include the details of your needs in the executive summary.
You should just include a short statement that indicates how much money you need to raise.
Milestones and traction
One of the last key element of executive summary, investors will like to see is the progress you have made and the future target you intend to reach.
If you are writing internal business plan that is mainly strategy guide for your company, you can skip the executive summary. In that case, you can dispense with details of the management team.
Traction, funding requirements and make the executive summary as overview of the strategic direction of the company.
You should make sure all of the team members are on the same page.
In business plan there are four main chapters. Opportunity, execution, company overview and financial plan.
With the opportunity chapter of your business plan is where the main gold of your plan are.
It’s includes the information of the problem you are solving, with solution, who you planned to sell your product to.
You should specify how good your business going to be in the field of competition.
Execution includes about how you are going to make your business work.
Marketing and sales plan
In this section, your business plan explains how you plan to reach your target market buyers.
What are your pricing business plan and how to make your business successfull.
Positioning is how you will present your company to your customers.
You should not bother on making your positioning statement long, you just need to explain the location of your company.
Your business plan can Include the overview of the kinds of advertising you want to spend money on.
In writing your business plan, another part of it, it the financial plan.
A financial plan do have a monthly revenue forecast and sales for first twelve months.
Some investors may request a five year forecast.
Though an appendix is not a must in your business plan, but it a good idea to place definition, legal notes, stick and charts.
If you do have a patent or illustrations of your product, then you will need to use it to complete the details.
If you are still confused about how to write a business plan, then you can check this similar post 10 Steps to a Perfectly Written Business Plan.