If you are looking for how to write a business plan, then here is the comprehensive guide that will help you come up with a solid and a proper business plan:
Your business whether it is a startup or an already established one, requires a business plan. Solid planning helps entrepreneurs as well beginners to build up a successful business. No matter how good are you in your skills, if you ignore developing a business plan in this tough to survive market, your end result would the same of failed businesses. So, it is recommended in all ways to write a plan for your business.
Before you move ahead to learn the important components of a business plan, it would be extremely better to understand what sought of benefits are provided by a business plan.
Developing a business plan benefits your business in many forms such as objectives becomes clear, deadlines are easily reached, assigning tasks becomes easier, uncertainties are well mitigated, strengthens your strategies, possible future risks are controlled, assists in securing the required funds etc.
Now, what is the best way to write a business plan or in other words what are the important components or elements of a typical business plan have been summarized as follows:
1. Executive Summary
Executive summary is the first and the most important component of every typical business plan. It conveys clearly what you want your investors to read. In this component of a business plan, you will have to introduce :
- Your business
- Your product
2. Business Description
The second important component of a business plan is business description. It should outline your:
- Legal Structure
- Organisational size
- Location of your business.
3. Competitor Analysis
This is the third section of a business plan which describes who are your close rivals and what are their key strengths and weaknesses in order to spot out opportunities and threats.
4. Market analysis
In this part of a business plan, you will have to describe the competitive environment and prove that your product or service has a substantial growth.
5. Marketing Plan
You need to explain how your business will get customers to buy products or services. Define your USP ( unique selling proposition), pricing strategy, sales plan and advertising strategy.
6. Operational Plan
How to get your product to the target market? and explain who is doing what? what are their day to day activities, which suppliers to be used and what are the labor requirements etc
7. Management & Financial Plan
In this section, you are required to describe your management team, staff and ownership structure. Financial plan section explains how investors can be attracted to fund your business and moreover helps in determining the viability of your business.