For a start-up business, one of the things that you need to invest your time into is creating the Business Plan.
A business plan is a written organizational design of your business idea. It consists of specific points such as planning your business and how you plan to do and start with it.
However, a business plan does not need to be very difficult and technical to read and understand. Remember, you are creating a business plan and not a technical literature! What is important is that it tackles the whole scheme of a certain business idea and the approach.
One more thing, it does not have to be a 30-page piece with lengthy texts! So avoid a rhetorical and a-lot-of-jargon type of writing. As Tim Berry (business author of the Entrepreneur) wrote, “effective business writing is easy to read”.
Now, let me share to you a few easy steps to craft your own business plan that might help you in starting your own business:
Business Summary: The Face of your Business Plan
A business summary (Executive Business Summary) is the face of your business plan. It comprises all the important points such as the concept, features and requirements of your business. In other words, it is the overall structure of your business. It classifies your goals and objectives towards your business idea. It should tell the reader what you want and how you want it to be. This is the part where you should be smart enough to compile all important points and make it a whole new component.
Business Description: The Purpose of your Business
The business description states precisely the purpose of your business. It contains the business structure; namely corporation, partnership, or sole proprietorship. You should also include here the type of business operation that your business caters such as manufacturing or service-oriented. The distribution and marketing of your business should also be positioned here. A succinct yet persuading description of the business industry invites more investors to read through your business plan. Make it more interesting, purposeful and sales-driven type of business plan!
Marketing Strategies & Techniques: The “How”
Marketing strategies and techniques are very important in a business plan. You will be able to formulate ideas on how to market and promote your business in a number of specific target audience. The pricing, distribution, promotion and sales will fall here. This is the part where you include different marketing methods to be able to determine the strengths and weaknesses of your business.
Here you can apply the S.W.O.T analysis to determine and develop the possible shares that your business might obtain in the future. Marketing is the process by which you communicate to your customers that your product or service provides value for them. If you are unable to show the consumer that your business provides him or her with value, your marketing plan is unlikely to work and your sales will struggle.
Having the marketing skills that are necessary to communicate this value to the customer is extremely important to any business. Business owners who do not have a background or a degree in marketing might want to seek the help of an experienced marketing professional before launching a business to ensure that the right message is being delivered.
Project Development Plan: Business Growth
The project development plan consists of the market development and product development. This part here should include the required capital and expenses with regards to developing your business. Your investors should have the idea of your business design by providing graphs, tables and charts to easily define the structure and planning of your business project. Visuals are great help when presenting the pros and cons that might affect the development of the business. Also, it is a strategic way to avoid lengthy texts!
Organizational Plan: The Operations & Management
The organizational plan is where the operational and managerial structure takes place. Your desired number of personnel and the resources in your business should specifically identified here to determine the manpower needed in certain business. You can add here the different functions of your management team and how each of the function contributes to the possible growth and development of your business. Moreover, the material, labor, and overhead should be concisely calculated for you to be able to identify the required resources of your business.
Financial Plan: The “Breakdown”
The financial plan is the overall financial data. This is the “behind-the-scene” element of this whole concept where the income statement, cash flow statement and the balance sheet take place. The financial plan will be the one to define the financial stability of your business by calculating and presenting the assets and liabilities. It will show the investors the whole phase of your business considering the resources that they might invest.
Now that each of the elements is presented.What you need is a clean sheet of paper and a pen to start outlining your business plan! Remember to consider your goals and objectives when writing your business plan. Imagine the positive outcome of your business and use your convincing power to invite more investors! Do not forget to K.I.S.S. (Keep It Short and Simple). Good luck!