How to Write a Business Plan is given in this article and we do hope you find it informative and able to meet the demands of your research.
Steps on how to write a business plan
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Plans are like architectural sketches, they guide us as we build our businesses as entrepreneurs. Every business needs a business plan to guide its operations and give potential investors a clear picture of where they are making investments.
Writing a good business plan requires a lot of research. Part of this research is what you’re doing right now by learning how to write a good business plan. This research includes situational analysis, market survey, and SWOT analysis.
The next most important thing to do is to write out the main aim, the purpose of the business plan without leaving out who the audience is.
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This is important to help you know which points to emphasize on and draw the attention of the people too. People buy what they need not necessarily what is sold.
The job of every business owner is to ensure that people are made to see why they should purchase the commodity they produce.
How to Write a Business Plan
Considering how important business plans are to entrepreneurs, we have decided to show you what a good business should contain to guide you as you write yours. A business plan contains the following:
1. Executive Summary
A brief about your business. This is usually not more than half a page or just one page. It contains the major details about your business.
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2. Company description
Description of what your business does. The name, the location. The branches if there are any and the contacts of each. Market analysis – this answers the questions; what is the market like? Are there cheaper substitutes for your products? Who are the major players and competitors? Will it be an easy entry for you?
3. Organization and management
Highlight the management structure like? Describe the organogram. The manager, the departments and their various heads, their subordinates. All the offices should be described alongside their duties and responsibilities.
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4. Service or product
The products or services you’re offering. Describe it and state its uniqueness. Do you have your products in various sizes or at different qualities? State the differences and the prices of each.
5. Marketing and sales
How do you want to market your business? What are your sales strategies? What kind of advantage will you do? Are you considering digital marketing, since there are many internet users buying things online?
6. Funding request
How much money will your business need to startup? How much will be the running cost for the next 3 to 5 years? These financial projections require that you supply information like balance sheets.
This is the reason why as a business owner, you must not neglect bookkeeping and also not throw away receipts of purchased assets.
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By the time you have written all these, you will see that the document i.e. is your business plan is bulky.
You will have to include a table of contents to help those who lay their hands on it to find their way through the document. (SWOT- Strengths, Weaknesses, Opportunities, Threats).