Thank you for stopping by, today I will be taking you through How to Write A Business Plan to Start A Successful Business. If you haven’t checked my previous article, remember to click the link at the bottom of this article to catch up and know how you create your own employment and attain financial freedom.
Back to the topic, you need a clear vision and this means writing a business plan in order to achieve your organization’s mission and goals. A business plan is essential since it set the tips you have to follow while executing your daily business activities.
You cannot succeed in your business without a plan hence better if you document it by writing the business plan.
What Is A Business Plan?
A business plan can be defined as a written document describing the nature of the business, the sales and marketing strategy, financial background, and a projected profit and loss statement.
Importance of A Business Plan
- To help you with critical decisions
- To iron out the kinks or come up with correct answers after brainstorming
- Helps you avoid the big mistakes
- Helps prove the viability of the business
- Helps set better objectives and benchmarks
- Helps provide a guide for benchmarkers
- Helps in securing financing
- Helps in reducing risks
This leads us to our last step on How to Write A Business Plan
How to Write A Business Plan and What to include:
1.Title Page and Contents
Every business plan has a Page that includes the following:
- Phone Number
- Wedsite address if any
This helps others know who they are dealing with and how they can contact them.
The executive summary is the most important part of a business plan and acts as an interpretation of your business to anyone who has no idea of what you are offering.
It gives the flow of the business and meant to answer the following questions.
- What do you want to achieve in your business?
- How do you want to do business?
- What is your reason for doing the business?
3. Business Description and Company Background
This section is meant to provide detailed information about your business, your product and the new path you intend to give your business.
This is the section where you give briefings about your business and the product it offers, the quality and the supply rate.
4. Market Analysis
Thorough marketing analysis will put you ahead of your competitors. You have to learn about your target market, and what they prefer.
After that, you have to highlight your positioning statement clarifying how you intend to reach your target market and close sales and this includes the distribution channels for your business.
5. Competitor Analysis
The purpose of the competitor analysis is to determine:
- The strengths and weakness of your competitors within your market
- Strategies that will provide a distinct advantage
- Barries that can be developed to prevent competition
- Weakness that can be exploited in the product development cycle
Whoever reading the business plan should get a better picture of how you will stand out from your competitors.
6. Operations and Management
The operations and management component of your plan is designed to describe how the business functions on a continuing basis.
It should highlight the logistics of the organization such as the responsibilities of the management team and tasks assigned to each division.
7. Financial Concepts of your Business Plan
This involves highlighting the 3 financial statements that form the backbone of your business plan. This includes:
- The income statement
- The cash flow statement
- Balance sheet
8. Problems and Solutions
A business arises due to a problem that needs to be solved. Therefore, in this section of your business plan you should highlight the problem and give the solutions you intend to provide.
9. SWOT Analysis in your Business
SWOT is a term used to refer to Strengths, Weakness, Opportunities, and Threats that face your business. Highlighting these give the prospects the idea that you know what lies ahead.
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