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.
A business plan should not be too long because you will need it to be read.
You should know that nobody is willing to read a hundred-page or even fifty-page business plan.
You shouldn’t be shy or start feeling intimidated because most business owners aren’t experts; they don’t have a degree in business.
Writing a business plan should not be a big deal for you.
Components of a business plan
If you are starting 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 business.
This is where you take advantage of the opportunity to drive more sales in your business as well as learn more about your competitors and your sales in the market.
how you will use your opportunity to start a business, as well as your operations and success.
Another thing to consider in your business is your capital at the start of your business.
This is the part where your company is being introduced and explains more about the purpose of your company.
An executive summary is the first chapter of your business plan, and it’s the first thing people read.
As you know the details of your business plan, you will be more prepared to write an executive summary.
Your executive summary should be as clear and concise as possible.
You should cover the key highlights of your business and not go into much detail.
It should have one or two pages, mainly quick in reading, that put more interest in the investors’ feelings of eagerness to hear more.
Try to have a tag line by writing your business name, with a short sentence of what your business does, at the top of the page.
Try to summarize the problem you are solving in the market field.
You can take note that all businesses are solving problems for their customers.
You should also address the problems that you have specified in the market field in your solution. It is good for you to specify your target market as your customers.
In competition, how is your target market solving a problem currently? Every business has competition, and it’s a must that you provide an overview in the executive summary.
An overview of the company and its personnel
Give a short overview of your team and a brief explanation of how you and your team are capable of taking your business idea to market.
Normally, investors are more pleased with teams than ideas, because even a great idea needs great execution to become a reality. In the financial summary, you should highlight the main aspects of your financial plan.
You should have a chart that shows your plans for sales, expenses, and profitability.
Funding requirements: if your business plan is to get a bank loan, or you are asking investors or venture capitalists for 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
Investors will want to see the progress you’ve made and the future goals you intend to achieve as one of the final key elements of the executive summary.
If you are writing an internal business plan that is mainly a 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 an overview of the strategic direction of the company.
You should make sure all of the team members are on the same page.
In a business plan, there are four main chapters. opportunity, execution, company overview, and financial plan.
The opportunity chapter of your business plan is where the main gold of your plan is. It includes information about the problem you are solving, with a solution, and who you plan to sell your product to.
You should specify how good your business is going to be in the field of competition. Execution includes details about how you are going to make your business work.
The marketing and sales strategy
A business plan explains how you plan to reach your target market of buyers.
What is your pricing strategy and how will you make your business successful?
“Positioning is how you will present your company to your customers.”
You should not bother with making your positioning statement long; you just need to explain the location of your company.
Your business plan can include an overview of the kinds of advertising you want to spend money on.
The Financial Plan
When you are writing your business plan, another part of it is the financial plan.
A financial plan does have a monthly revenue forecast and sales for the first twelve months.
Some investors may request a five-year forecast. Though an appendix is not a must in your business plan, it is a good idea to place definitions, legal notes, sticks, and charts.
If you do have a patent or illustrations of your product, then you will need to use them to complete the details.