There is a common saying which goes something like, ‘Failing to Plan is Planning to Fail’. That is why so many successful entrepreneurs and businessmen and women lay out a business plan. A business plan is basically a list of achievable goals and the means and ways you are going to achieve those goals. A smart and organized business plan can be the difference between success and failure.
A business plan could be to set out a path or potentially attract investors, nonetheless, it is necessary for your company’s success.
In this guide, you will learn how to maximize productivity and boost your business with a business plan with a few easy steps.
What to set your mind on when you make a Business Plan?
Audience: A business is nothing without its audience so it is extremely important that you know who you are targeting. So, a business plan’s audience is just as important. You should make a business plan specifically for that audience, whether it is an external investor or an internal employee.
Clarity: You should have a strong vision for your business. It is important to know what you want to do, so you can set a clear path. You should be 110% clear with what you want to do as it will help you determine your future actions.
Realism: There is no wrong in being optimistic, but when making business plans, be sure to set realistic achievements at first so that they are attainable. If you are able to achieve the first few achievements then that will be far more beneficial then not being able to achieve impossible goals. This will keep your workplace morale up and also display your progress to a potential investor.
Precision: Keeping your business plan short and precise is important if you want people to actually read it. It will also, eventually, become a tedious task for you to go over constantly if it’s too long. Also, it is better if it is short so you can keep on changing it as your business changes with it.
The Ingredients to an Effective Business Plan
The first focus or topic should be an executive summary.
An executive summary is a summary of your business and your plans. It is an overview of your business and goes over the main aspects of your business. You will need to briefly explain why you believe your business will be successful. This a summary of all the other contents and goes over each one of them briefly. Quite often, this is what an investor might ask for when looking at your business plan.
The second topic covered should be opportunity.
Opportunity is basically the potential your business has in the current market. This part should cover what your business is providing and how it satisfies the market’s demands. This part of the plan will go over the problems your business will solve. This is the chapter in which you will be boasting your full ability and describing the advantage your business has or will have to the reader. It also highlights the audience you are targeting and competitors in the current market.
The third topic is market analysis.
You will need to have a good understanding of your target market and industry outlook and for that it’s important you analyze how your competitors achieve success. Analysis and research will show you what makes other businesses as successful as they are. Thorough research will show you common trends between different companies and allow you to better them in those fields.
The fourth topic is execution.
This section goes over how you will go about exploiting your opportunity and turning it into a business. You will have to discuss how to market your product or service and your sales strategy. In this section, you will go over how you will attract new customers and retain old customers. This part will clearly outline your sales and marketing strategies.
The fifth topic is organization and management.
You will go over your team and potential employees in this topic. Along with that you will describe your legal structure, location and if your company is already in business, it’s history. You will also state whether your business is incorporated as or will be as a S or C corporation. It will highlight the details on partnerships, or if you’re a sole proprietor, it will mention that.
The sixth topic is the financial model
A financial model is essential for any business plan. This goes over your sales forecast, cash flow statements, profit and loss, and your balance sheet. You need to convince the reader that the business is full proof and is destined for financial success. In this, you need to include a financial outlook for the next five years or so, this will project your forecasted income statements, capital expenditure bucket, balance sheets, etc.
Lastly, comes the appendix
This is for any additional information or images related to your business or other materials specially requested such as resumes, product pictures, permits, legal documents, etc.
These are the key components to making an effective Business Plan. Make sure to go over each topic in detail but to keep it concise. If you have a strong vision and a sturdy plan, your business is bound for greatness.