A business plan refers to a written document that comprehensively outlines what your business is, where it is going, and how it will get there. The business plan outlines in specific terms the financial objectives of your business, and how it will position itself to achieve those goals in the context of the current market environment.
In addition, the business plan is an indispensable tool to attract business capital. This article will outline how to create one step-by-step. To write a business plan for a small business, start by writing an executive summary that briefly outlines your business.
Follow that with a company description that explains your business in more detail. You'll also want to include sections on your target customers, how your business will be structured, and what products or services you will offer.
Finally, conclude your business plan with a section on your marketing strategy and also a funding request for potential investors. Lewis on January 26, Determine the type of business plan you will use. While all business plans share the common objective of describing a businesses purpose and structure, analyzing the marketplace, and creating cash flow projections, the types of plans differ.
There are three major kinds. This is a shorter plan likely 10 pages or less , and is useful for determining potential interest in your business, further exploring a concept, or starting point to a full plan. This is a great starting point. This can be considered the full version of the miniplan, and its main purpose is to outline, without emphasis on appearance, precisely how to build and operate the business.
This is the plan that the business owner would refer to regularly as the business moves towards its objectives. The presentation plan is meant for individuals other than those owning and operating the business. This could include potential investors or bankers.
It is essentially the working plan, but with an emphasis on sleek, marketable presentation, and proper business language and terminology. Whereas the working plan is made for reference by the owner, the presentation needs to be written with investors, bankers, and the public in mind. Understand the basic structure of the business plan.
Whether you opt for a miniplan, or a comprehensive working plan to start, it is essential to understand the basic elements of a business plan. The business concept is the first broad element of a business plan. The focus here is on the description of your business, its market, its products, and its organizational structure and management.
The market analysis is the second major element of a business plan. Your business will operate within a particular marketplace, and it is important to understand customer demographics, preferences, needs, buying behavior, as well as the competition.
The financial analysis is the third component of the business plan. If your business is new, this will include projected cash flows, capital expenditures, and the balance sheet. It will also include forecasts as to when the business will break-even. If you lack business or financial education, it is never a bad idea to enlist the help of an accountant to assist with the financial analysis portion of the plan.
The above sections are the broad components of the business plan. These sections in turn break down into the following seven sections, which we will, in order, focus on writing next: Company description, market analysis, organization structure and management, products and services, marketing and sales, and request for funding.
Format your document correctly. Format section titles in Roman Numeral order. Write your company description as the first section. To do this, describe your business and identify the marketplace needs for your product or service. Briefly describe your key customers and how you intend to succeed. Joe's coffee is located one block from the local University, and aims to provide a comfortable environment for students, professors, and downtown employees to study, socialize, or simply relax between classes or meetings.
By focusing on excellent ambiance, close location, premium products, and superb customer service, Joe's coffee will differentiate itself from its peers.
Write your market analysis. The purpose of this section is explore and demonstrate knowledge of the market your business is operating within. You should be able to answer questions like, who is your target market? What are their needs and preferences? How old are they, and where are they located? Make sure to include a competitive analysis that provides research and information on immediate competitors.
List your main competitors strengths and weaknesses and the potential impact on your business. This section is extremely important, as it outlines how your business will gain market share by capitalizing on competitor's weaknesses. Describe your company's organizational structure and management. This section of the business plan focuses on key personnel. Include details about the business owners and its management team. If the owners and managers and have extensive backgrounds in the industry or a track record of success, highlight it.
If you have an organizational chart, include it. Describe your product or service. The processes involved in the planning stage are meticulous. They require ample time, research, detail management and an understanding of basic economics and development.
For the novice business owner, this can be very overwhelming. In the proceeding paragraphs you will find the basic requirements for making a business plan, including:. A business plan, for all intents and purposes, is a clearly defined document that not only describes the nature of your business, but also outlines strategies, objectives, goals, sales and marketing targets and financial forecasts.
Your business plan should be able to assist you in:. Your business plan needs to be as detailed and through as possible. However, resist the urge to include every possible stitch of information in your plan. You will want to leave some content for your operational or marketing plans. When drafting your business plan: Unlimited Revisions All of our business plan development clients get six months of free, unlimited revisions and editing.
We schedule an in-person or over-the-phone Kickoff Session with you. OBP consultants will evaluate information from the Kickoff Session, existing client collateral, and complete all necessary research to compose your business plan.
OBP will send you the full plan for review. We will revise your business plan according to your requests. We will continue steps 4 and 5 as necessary to achieve the perfect final business plan for you.
If you want, we can help get you and your plan in front of our network of lenders and investors.
Not only does Business Plan Premier help you organize and write your business plan at an extremely detailed level, it also enables you to present your finished plan to more than 3, high net worth potential investors, who are also members of investment research firm Ben Stein & .
We would like to show you a description here but the site won’t allow us.
Okay, you're on board and ready to write a business plan. The good news: You're on the right track. The bad news: This is where you may start to feel stressed, overwhelmed and completely out of your league. Take a deep breath. This business plan shortcut is the perfect place to start. Start with some of our free business planning resources, like free sample business plans, our one-page plan template, or our template for a complete business plan. Then, scroll down for a complete set of resources that will help you create the ultimate business plan.
Jan 30, · Your plan will provide the roadmap to achieve the success you want. The question shouldn’t be IF you write your plan, but how to write a business plan that will take your company where you want to go. Your business plan is essentially your answers to a comprehensive list of questions. After determining a focus for your new business idea, the next step is to write down a well-thought out plan. Poor planning--or lack thereof--is one of the top causes of small business failure, so.