One of the key ingredients of a successful business is a well-documented and implemented business plan. Whether it is to make big spending decisions or to provide a solid foundation for strategic planning, a business plan is indispensable for the success of your organization.
Before writing down your business plan, do the necessary research work. This would help you understand the market, know your audience and create a strategy.
This step-by-step guide will take you through every stage of writing a business plan that will actually help you achieve your goals. A business plan should include the following:
- Executive Summary
- Company Description
- Product or Service
- Market Analysis
- Strategy and Implementation
- Management Team
- Financial Analysis
This is an overview of your business and your plans. It should contain the name of your business, what you specialize in, the numerous products and services you the market and what you intend to offer.
Here you give a detailed description of your company. Describe your current team and who you need to hire. Also state your by-laws, location, working hours and history.
Product or Service
This section should describe in summary what product or service you are offering to the market. Describe its uniqueness and the problem it would solve, need it would provide or the gap it would fill. Also describe your target customers and competitions you will face in the market.
This section explains various information gathered regarding the market which you intend to enter. State the competitive edge your product or service has over other competitors and industrial trends that would influence the future operation of the market.
Strategy and Implementation
Explain how you will market, advertise and promote your business and your sales strategy. This section also includes your client management database, educational programs and classes to better position the business as leader in its field, pricing and fee structure, and financial projections.
This section should explain your team makeup. The experience and skills of the owner should be summarized. If it is a partnership, describe the agreement between the partners. Also, describe the role of each member of the management setup and consultants that would contribute to the business.
This section presents an economic model that realistically puts forth the basic financial assumptions of your business. State the projected financial plans for the business like how much money you will need for the next 3 to 5 years. Also, highlight the key aspects of your financial plan that shows your planned sales, expenses, and profitability.
This is an optional section that includes resumes and permits. It is advisable to summarize what is available in request and should be as short as possible.