Having a business that helps you follow your passion and at the same time, help you gain some extra bucks is dream for many. But the reality is, only few reach at that point where they taste success. What about others then? Well, one of the main reasons that many business fail is because they lack a Good Business Plan. So, if you have just stepped into the entrepreneurial world or planning to start your business, then we bring you Business Plan : How To Write It Effectively And Things To Know Before Writing One.
Before starting, lets have a look on what a business plan all about?
What Is Business Plan?
Business plan is basically a 3-5 slider documentation or presentation which help others understand various aspects of your business such as Product, Business Structure, Team accountability and resources, Finances, Goals and Mission, Market and Competitor analysis which further helps analyse its potential for implementation and future success.
Business plan can be helpful in applying for funding & Investment from organisations or to give an overview of your business to angle investors in the form of presentation, by founders who are looking for initial investment and funding for their businesses.
1 – Executive Summary or Overview
First things first. Executive summary of a business plan basically is an overview of your business.
It gives the basic understanding of what your company does and how it is structured in terms of people and resources. It is a kind of snapshot of your business which gives a basic idea to the reader or investor.
Executive Summary of Business Plan Generally Includes :
- Your Company Name
- Company Structure
- Team & Resources and their accountability
- General Overview of your company’s Product and Services
- Your Company Location
2 – Product & Services Details
Define whats your main focus product on which your business is structured around.
Give a brief description of your product and services that your company will provide, in a simplest way possible, that help investor or reader to have a clear understanding of how your product is going to make an impact in the targeted market and audiences.
3 – Business & Market Analysis
One of the important and deciding factor for success or failure of a business.
Write a market analysis of your product and service by conducting a market research that answer some of the questions like :
- What is your target market?
- How your product is better than existing product in that market?
- What is your target audience?
- The competitive advantage of your product over existing products?
- What are the latest trends within the market for products similar to yours?
- Which products are popular among your target audience?
- Challenges that people are facing with existing product?
It helps you in marketing and generating sales.
If you want to read about Market Research and how to conduct an effective Market Research, you must read our article ‘Top #7 Important Things For Conducting Market Research Effectively‘.
Create a demographics of your target audience within a market with their volume? Age ? Income? Location?.
Create a psycho-graphics which generally includes interests of audience? Choices? Desires? Likes and Dislike? .
4 – Competitor Analysis
Competitor analysis is majorly depends on your target audience.
You need to define some of your major competitors within the market along with their market capture.
It will help you identifying upcoming challenges for your product or services. It help you answer some of the important questions such as :
- How your product is better that others?
- Size of your competitors and your strategy to tackle them?
- What are the popular products of your competitors and their market capture?
5 – Goals And Mission
Your goals must be reaistics and achievable. Goals is basically defines your projections for various aspects of your business in a particular time frame.
Generally, goals are being set for different projections keeping a time frame for 3 years of 5 years.
Projections generally are your sales projections, Your customer acquisition projection, market share projection, your company size projection.
Sometimes its a bit difficult to project various aspects of business for those who have just started. So, to make it a bit easier, reducing the projection time frame to 1 year would be helpful.
Define your mission. Mission is an important driving force towards achieving your goals and how you are going to achieve it.
6 – Funding & Financial Projection
One of the important analysis that needs to be done to keep your business running.
Define your funding requirements and why you need it, how you going to use funding and its distribution among departments such as marketing, product development, salaries etc.
Make your financial projection for 3 years to 5 years which help you answer some of the questions such as :
- Projected revenue?
- Break even point projection?
- Profit projection?
- Investment projections?
7 – A Message
Having a business that conveys a message through its product and services helps you make an impact on the target market and audiences as all as the investors.
So create a nice tagline for your business and describe a message it conveys to customers. That would be a great impression and advantage.
Having a business plan is your first step towards success and beyond. Business plan and business strategy is generally dynamic in nature and it keeps on changing with time along with your business growth and performance.
So, don’s bother about 100% accuracy of your business plan at the very start.
At the end, preparing a business plan is one of the important an crucial step which needs your utmost attention during initial days of starting a business and you must know what is a good business plan and how to write it effectively.
We hope that our article ‘Business Plan : How To Write It Effectively And Things To Know Before Writing One’ would be helpful for yu to write your first business plan and succeed.
Please do comment your feedback about this article and also share which business your are writing a business plan about.