How to write a Business Plan (Step by step)
Business plan is essential for the growth and success of a business either Offline or Online. it provide Direction and keep you on track. after all 5 out of 10 business fail after 3 years due to lack of planning,financial management, Insufficient market research all this can be traced to the plan you make before launching or expanding your business.
A business plan is a document with curtail details, it cover specific question for the growth of a company. the structure of your business, what you are going to produce, sell or which service are you rendering. how much fund you will need among others.
WHY DO YOU NEED A BUSINESS PLAN
1. A BUSINESS PLAN IS VITAL FOR CAPITAL: if you are seeking for capital to start up your business. your investor will want to see your business plan, to know why they should invest in you, whether the business will be profitable and loss free.
2. A BUSINESS PLAN CAN HELP YOU PRIORITIES: a good business plan is one of the most valuable tools you need, it help you map out strategies for the business, it give your business direction.
once you’ve got a business plan you have to access and review it to see if it help you to access whether your strategies are working, remind yourself of your goal and priorities.
WHEN SHOULD YOU WRITE A BUSINESS PLAN
a business plan should be documented before the start of your business the planing process help you to see the different factors that might affect your business. if you are already in a business you have to step back and analyse your business plan to see what working, what and working for you and what you can improve on. business plan help give you control over your business.
learn about your industry,market and competitor
identify challenge you might come across. write down how to solve and over come them
understand your business finance, cash flow and your break even point.
before your begin to implement your business plan you have to ask yourself some question.
1. Why are we ready to start the business / why are we expanding the business
2. who are the target customer ？
3. How can we make profit ？
4. what solution are we offering ？ how can we offer it ？
5. what make our company different
steps to writing a business plan
STEP 1: EXECUTIVE SUMMARY :
the summary is where you introduce your vision try to make your executive summary answer this question.
what sector are you in？
what product and services are you rendering ？
who are your target audience？
what your marketing strategy ？
what does the future of your industry look like ？
what motivate you to start your business ？ why now ？
step 2: Mission statement: this is important to you and your team.
follow the kiss rule. KEEP IT SIMPLE
your mission statement talk about who you are, talk about the strength of you and your teams, your mission statement should include,your goal and objectives,how you see it evolving in the short and long term,and,who your customers are.
3. A BUSINESS PLAN GIVE YOU CONTROL OVER YOUR BUSINESS
having a business plan make you analyse to see what working for you, what not and what you need to improve on.
if you have some loyal customers you can ask for there reviews and feedback.
business plan can seem time-consuming and overwhelming but many successful business see it as an opportunity.
Step 4. Marketing plan: now that you’ve know what to do and how you want to do it. the next is how to market your product/services to reach your potential customers.
Your marketing plan should be the result of a blend of first- and (reputable) second-hand research into your marketplace
Your customers: Are you B2B or B2C? Who are your customers? How do you plan to reach them? Where will you sell your product/service? How will you garner feedback from them? How will they know you care?
Your competitors: Who are your direct/indirect competitors? What’s your advantage? Don’t be shy — tell them you are better and why.
Your sales strategy: how are you planing to sell your product/services. directly or indirectly, online, stores, through promotional adverts, TV/Radio
Step 5. Operational plan:
Your opening and closing Hour
This part takes a reader through the day-to-day of your company, explaining the:
Writing a business plan isn’t just about including all important information. It’s also about capturing the attention of a reader and convincing him or her that you are a solid team. Show them why you make a good team, and then add some candid shots of your company team happily working together.
Step 6. Management organization
This part includes a hierarchical chart of your company and how the operations we talked about above flow through it. List the positions and briefly describe the functions of each integral member of your business, including but not limited to: board of directors, advisorys, technical specialists, accomplished salespeople, accountants, and lawyers.
Then describe any steps for your staff to expand. Also, reflecting it in your financial plan, discuss any new hires you want to make and why. Your business plan isn’t just about where your company is, but where it’s future is headed.
Step 7. Fiscal planning
The fiscal piece of your business plan puzzle is the piece investors and loan managers are going to spend the most time looking at. Without proper capitalization and financial planning, even the most excellent business idea that fulfills an urgent need is at high risk for failing.
Cash-flow analysis: This reflects what you are going to sell versus your business expenses. This analysis projects your profit margin.
Profits & Losses analysis: Done in conjunction with the cash-flow, this looks ahead at least a year and includes revenue predictions, including graphical representations of those numbers.
Break-even analysis: This breaks down how much you have to, well, break even.
Seriously, this is the part they are going to spend the most time looking at, make sure it’s thorough and realistic.
Conclusion: Writing a business plan is crucial for the future and growth of your business.it not just about attracting investors and get financial support. it gives you and your team organize your business better one for present and the other for the future future.