A business plan is the initial stage of a business. This is the business card of your future project. How to write a business plan? The step-by-step instructions in this article will help in this matter.
Business Plan Objectives
Writing a business plan can be different depending on why you need it. One of the most common goals is to present it for investment. Such a business plan for the project is the most complex. Often, outsiders are invited to write it - specialists in their field who will create a suitable business plan for approval by the investor.
It happens that the head instructs to write a business plan for the company, for example, to open a branch. In this case, too, they often turn to third-party specialists to draw up such plans. Ultimately, the contractor may need only some adjustment to the needs of the company.
Well, when a business plan is necessary to start your own business, it is best to write it cover to cover yourself. This is a difficult process, but exciting and very interesting. After all, own business is the real brainchild of an entrepreneur. And therefore, its creation is treated very reverently and thoroughly. The article provides instructions on how to draw up a business plan for your business.
Basically, those who decide to open their own enterprise have already chosen and are well aware of their area of activity. But there are entrepreneurs who want to have their own business, but still do not clearly know what they will be doing. They are in search of a business idea. It is difficult to overestimate its significance. The idea should fit the interests and desires of the entrepreneur himself.
This may be a favorite thing that a person is ready to do even for free, or a business that already brings guaranteed income. In any case, choosing a niche for yourself, it is important not to be distracted by anything else and not dream of unattainable peaks, but to step by step bring your real idea to life. The business plan will really help in this matter.
How to write a business plan? Step-by-step instruction
So, having imagined what the future business will be, you can proceed to writing a business plan. There are special planning standards. Therefore, if it will be submitted for investment, you should choose the appropriate standard and adhere to it when writing.
To understand how to write a business plan, step-by-step instructions and generally accepted standards will do a good job, as they are approved by people who are professionally versed in these matters. The entrepreneur will be able to sort through his, perhaps, not yet fully formed thoughts, and bring his business to life.
A standard business plan consists of the following chapters:
Here, in brief, the essence of the matter, a description of the business idea, information about the objective need for it in the market, the timing of implementation, the payback of the project and competitiveness should be displayed.
Of course, this part is more intended for potential investors. It is they who, after reading the summary, conclude whether it is worth exploring this plan further or not. Therefore, if it is supposed to be presented to the investor, it is necessary to carefully describe this part, possibly returning to it again and again, introducing corrections after the compilation of the following chapters.
However, for their own needs, this part is also important, since it helps the entrepreneur to better see the whole process of organizing the business as a whole.
If the resume is written approximately on one - at most two pages, then this chapter can be written in more detail. That is, in fact, the chapter "General Provisions" contains the same information as the summary, but in a more detailed form invites the reader to familiarize themselves with the project as a whole.
It describes the characteristics and implementation of the project, its life cycle, the possibility of additional development and forecast changes in the product with a possible change in market trends.
The business plan of the service in this chapter should contain information about what the specific service is and how it will attract customers. For example, the business plan of a beauty salon describes all the proposed services, their characteristics and distinguishing features. An attractive feature here is the legend of how celebrities go through the procedures in the salon or how individual specialists provide these services to them, how the specialists passed training directly with the brand of the product with which they work.
In parallel with writing a business plan or before drafting it is necessary to conduct a market analysis. This is an extremely important part, because the success of a future project directly depends on it.
Having chosen a market niche and a target audience, a thorough analysis is carried out in order to identify how relevant the project’s business plan, initial proposal and its idea are. If the analysis reveals an excess of supply, then it is worth returning to the idea and trying to correct it in such a way that it corresponds to the situation on the market. If there is increased demand, then everything is in order, and you can safely proceed with further actions.
Market analysis is carried out in different ways. But if there are problems with its implementation, there are companies where you can outsource market analysis.
Nevertheless, the entrepreneur is advised to sort out this issue himself, since any third-party organizations will give only an objective average result, not fully taking into account the business plans of small businesses and all the nuances of the business idea of the author of the project.
Marketing and strategic planning
This plan includes the introduction of the product on the market, its development, pricing, sales and marketing system, as well as advertising. To display the product, it is advisable to build a Gantt chart where the implementation dates of various events will be displayed. Based on the analysis of the market and competitiveness, a strategy is calculated, how the market will be conquered and what tactical actions will be required for implementation.
Pricing is based on economic calculations and the expected revenues of the company. Sales and sales can be represented in the form of a diagram where the entire process will be visible in stages. For example, from the receipt of goods to a warehouse to the receipt of money for the goods and its sale.
Costs and production schedule
This chapter includes the purchase of necessary equipment, repairs, rental premises and other costs. In the production schedule, it is necessary to reflect how many people are required to implement the project, the schedule of their work, deductions of wages and related payments.
Small business business plans will become much more attractive for the investor if there is a ready-made team to work on the project, as this proves the entrepreneur’s ability to realize his plan. Therefore, it will be appropriate to emphasize this fact in the business plan.
If the company will be a production, then it is necessary to describe the production process, as well as partners and suppliers who will participate in the business. For example, the farm’s business plan in this chapter should include equipment for milking, bottling, packaging milk, and a mechanism for marketing it through specific suppliers.
Financial plan and investment
The most crucial part of the entire business plan is, of course, the financial plan. Moreover, if the project is intended to familiarize the investor, then after reading the summary, a serious investor will most likely look at the financial plan. After all, it is here that the entrepreneur’s real ability to implement business ideas will be visible. This is the essence of entrepreneurial activity.
The financial plan provides all the information about the possible costs and revenues of the project. Based on the marketing, strategic plan and costs, a table is compiled for several years, which displays the required investments and the schedule for their repayment, all costs and possible revenues.
The final part of the financial plan must necessarily be the calculation of the profitability of the future business.
Now the reader knows how to write a business plan. The step-by-step instruction provided in the article is a short guide that demonstrates the importance of understanding goals and the need for business planning.