How to Prepare a Business Plan for the success of Your Business?

How to Prepare a Business Plan for the success of Your Business?

Business plan is inevitable before you start your business. Without a proper plan the success of the business is not at all easy.

“If you fail to plan, you are planning to fail”-Benjamin Franklin

The business plan is a crucial part of any business. It is a written document. It is an opportunity to know how you can achieve your goals. While preparing a business plan you must be accurate and clear. With my thorough reading of various business plans and my own experience, I have decided to help people to write their business plan.

Starting and running a business is not an easy task, but if you have a proper business plan that is rewarding.

Every plan has been started with an ‘idea’, without proper idea you could not start a business and make it a success. Then, converting that idea into a business. Moreover, you can think and make an analysis of your business with the help of elements of business plan. The feasibility of your plan supports your business into a success. 

The business plan will help you for getting the fund from venture capitalist and banks. It is an opportunity for investing from others. Further, you can hire skilled people at the optimum level based on your plan.

The elements included in the plan is significant and simple to understand. The business plan usually includes eight to ten pages. However, the ideal length of a plan is 25 pages.

The Elements of a Business Plan

Executive summary

The executive summary introduces your company, the objective of your business and key success areas. This can be written only after completing the entire business plan. The summary is a clear abstract of the plan. The summary should give an idea about your business.

Business idea

This is the most important part of a business just bring a good idea about your business. The existing business can modify with your new idea and you can bring with your new idea for business. You should be analysing the feasibility of the idea whether it is good for business or not. The strong idea will help you to start your business with the support of venture capitalist and banks. How to develop a business idea that has also been published.

Company description

The company details like a family-oriented business, sole proprietorship, partnership, private limited company etc must be in this head. The mission statement can be written separately because that will be persuading you to the future. A mission statement is the formal summary of the values and goals of the business what our business will be focusing on coming 1 to 3 years. Once you have achieved the objective then you can write about the next 3 years in your mission. In a mission statement can cover the profit or revenue centers of your business.

The company must include the Logo, patents, copyrights and trademark as well as special technology. All key terms should be defined in this area. Moreover, the competitive advantage of the company in the areas of distribution, financial strength, technology etc. can also include in this head. The priorities of the company and unique proposition is also important in this head.

Start-up summary

The total amount required for the business. Start-up fund details and expenses can be described in this area. The clarity of the idea will help you to grab the fund from investors.

Product and services

What type of products do you want to produce and how can you distribute the products? What is the value proposition of your product/services? that can also be included in this head.

The availability of the raw materials of the products and technical knowledge can also be highlighted in this head.

Marketing and sales

Marketing mix can be done in this head. It will help to understand how to sell your product in your Target market. Segmentation of the market and who is your customer is an important part of your business. The market size can be developed with the help of analysis. You can analyse the market with the help of the Demographic and psychographic perspective. 

Then you can solve the following questions:

  • How are you going to promote your product?
  • What type of online services do you prefer for your customers for creating a market?
  • What are the post-purchase services?

The Advertising plan must be included in this head. Advertising is the main part of the expenses so the company should be conscious about the budget of the advertisement as well as promotion programmes.

Online marketing details will help to create an attractive website, social media advertisement and way of creating various strategies to influence the people through online mode.

Sales forecast will help to maintain the production cost, distribution, storage and general expenses

Industry Analysis

Industry analysis is an important task to understand the various stages of the industry like the embryonic stage, growth stage, maturity stage and decline stage of the industry. It will help to know more about the industry as well as your organisation.

Finance

How much money would you need to start your business? What is the current financial position, expenses and cash flow statement?

Describe the cash resources available right now. A Proforma balance sheet should be prepared at start-up in the first year and the end of each of the first three years. The project balance sheets determine the working capital, current ratios, inventory turnover etc.

The income statement illustrates the projected operating results based on profit and loss. The cash-flow statement exhibits the expected cash inflows and outflows

Breakeven analysis

This is the most important part of the analysis which helps to the estimation of the breakeven point. The break-even chart shows the level of sales needed to cover all costs. The business owners figure out when their company, service/product will be reached as profitable.

Management summary

The management should describe the details about the management team as well as the key personals, their positions and responsibilities, organizational structure, and critical personnel.

Appendix

The diagrams, tables, definitions, legal notes, other critical information, patent and financial data etc.                

 

A business plan is a guide that will help to understand each step of the business and approach the authority for getting the fund as well as licences. The most important is you have to read thoroughly and answer the questions above.

"Business without morality will destroy us"-Mahatma Gandhi

The famous quote which I would like to share you for empowering your thought and ideas.

#business plan  #success  #business

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