A business plan is an essential piece of writing that elucidates your business idea. A good business plan shows investors what you have done so far, why it matters, how you intend to grow your business and other important details about your business. Additionally, it facilitates the process of making an informed investment decision. A professionally laid out plan can be a brilliant thing to have in place before approaching investors.

Thinking of how to create a business plan? Don’t worry, we got your back! This article provides valuable insights into the process of developing a business plan and the advantages of having one.

What is a Business Plan?

You guessed it right! A business plan is a detailed description of the goals and objectives of an organisation. It outlines a company’s operations, finances, and marketing strategy. Both new and existing businesses use business plans to win new partners or to obtain funding.

Business Plan Steps

If you are keen on preparing a business plan for your idea, here is a step-by-step breakdown of the process of writing a business plan:

Step 1: The first page of your business plan will be your elevator pitch. It needs to include the mission of your organisation as a whole as well as a summary of your growth plan. An elevator pitch must consist of:

• a catchy hook
• a general overview of your business model
• a summary of the company’s future plans

Step 2: Next, you need to write a detailed description of your company. It should include necessary details like the registered name and location of your business, business structure, per cent ownership status, etc.

Step 3: The third section of your plan should outline the objectives of your business. You may use this part to justify your need for the money, how the funds will help your firm expand, and how you intend to meet your growth objectives if you ask for outside investment or a business loan.

Step 4: It’s time you introduce your product! The product description sector is essential to the e-commerce business plan. The following is a list of what you should include:

• Your product or service name
• The working of your product or service
• The customer base of your product or service
• Your supply chain
• Your strategy behind order fulfilment
• Your product or service sales strategy
• Your product or service distribution strategy

Step 5: ‘How unique are your offerings as compared to your competitors?’ Be ready to face this question, as investors are always curious to learn how your product differs from your competitors. Therefore, you must identify your competition in the market analysis part of your business plan. Identify what your competitors are doing well and what you can improve. 

Step 6: Think of your business plan as the foundation of your business; if you can’t structure it well, it won’t matter how big your ideas are. Your marketing plan in a business plan is essential. Here’s a pro-tip, think of yourself as a salesman while preparing the marketing plan! 

Step 7: If your company is still new, you might not have much knowledge of its financials. If your organisation has already established itself, in that case, you should include the revenue or profit-and-loss reports. These balance sheets identify your assets and obligations and a cash flow summary that illustrates how cash enters and leaves the organisation. Your company’s balance sheet must include the following:

• Net profit margin
• Account receivable turnover ratio
• Current ratio
• For start-up business plans, you must provide as much data as possible

Step 8: What are you offering to the investors? Think carefully for this one! One of the essential parts of your business plan is outlining how you will repay your loan or investments and what return investors should expect. Your financial plan in the business plan must be specific and include details of any warranties and guarantees.

Step 9: Bingo, you are about to finish! To finish your business plan, list any supplementary papers or data that you couldn’t fit elsewhere, such as key staff’ resumes, licences, equipment leases, certificates, patents, invoices, bank statements, and personal and corporate credit histories.

Final Thoughts

Business plans do not tell the whole story of your organisation, but they are one of the essential tools entrepreneurs like you have at their disposal to obtain capital. A good business plan outline gives potential investors confidence in your company’s growth potential. No investor wants to be a part of a venture that doesn’t have well-thought-out plans and strategies for success.

Frequently Asked Questions

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