This can be really daunting if it’s just your first time writing a business plan, but it is really important for the success of any business venture.
A business plan contains concrete plans on how you want to go from a “normal” startup to the point where you envision to be. It outlines your short-term immediate goals and what you want to do about it, and your long-term ambitions which are flexible and subject to change. It also includes what your business is all about; your product or service, and how you intend penetrating your market and carving a place in your niche.
Your business plan should include a solid marketing plan because you want a concrete strategy on how you intend reaching your customer. Because, if you do not have the ability to reach your customer, you never even get frequent opportunities to make sales that your business needs to stay afloat.
Your marketing plan should include a business website, and digital strategies like ads, and social media, etc.
You also need to include the team that your business would be comprised because your business would be incomplete without them. And if you are writing your plan in the hopes of showing it to some investor, they would want to know who they’re trusting their money with.
Components of a great business plan
A great business plan includes, but is not limited to the following;
1. Executive Summary
This includes your project name, projected revenue for the business, market description, startup capital.
2. Business Description
A detailed description of your business, what it’s all about, your mission, vision, goals, action steps, and your target customers.
This section needs you to explain the need for your business or products and what unique feature you are bringing to the marketplace that distinguishes you from competitors.
4. Market Analysis
You need strong evidence that your business has what it takes to survive. That’s where analysis comes in. You will be describing the size of your market, and how you intend penetrating that market. That’s of course if your business is going into an existing market.
You’ll also be describing the plans you have to enter a growing market and establishing a name as a leading brand in that market. But then, you would have to come up with an analysis that predicts that market’s future.
This should also include information about your target customers, their challenges, and how you intend solving it better.
This section would explain the cost at which your products or services would be set and how and why you arrived at that figure.
This section would explain where your business would be located. Why you chose that location and its effect on sales and profits in your business.
7. Human Resources
Here, you would be talking about the team behind the business and individual functions of each member of your team and what system you are aiming to create that could cause them to work even when you’re not around.
Note: You are not running a self-employed business, if you are, then it’s better off going to work for someone. You want to build a system that could be replicated over and over with high prediction of your business’ success wherever it springs forth.
8. Customer Service
How do you intend handling customers? How do you intend serving them? You want all that in this section.
Except you want to risk the existence of your business, especially if you have big dreams for it, you would want to get the necessary permits that allow you to operate your business in your specified location. You would be listing all the licenses you need to operate your business in this section and the cost. It’s okay if you cannot really say off the top of your head, you could make your researches on these as different places have totally different standards.
This section would cover how you intend storing your products or equipment, records, and also data collected from customers. Everything that has to do with data, both hard copy or soft should be included in this section and what it would cost.
11. Working hours
This section would cover the opening and closing time for your business and how shifts are going to be rotated if your business would need workers working in shifts.
Your business plan is incomplete without this one. You should have concrete plans on how you intend effectively handling financial recordings of your cash flow. Also, include the persons or software you’d need to handle this part of your business.
13. The project needs
This is where you’d list out all the equipment you would need for your business to work. Everything!
14. Project cost
This would be the total cost of starting and running your business for a specific time-space. But you’d notice that the first point listed in this section, the Executive summary, you are expected to include your startup capital in that section. How then do you want to pull that off? See into the future?
No, you are actually expected to write that one last. Then, when you’re done with everything else, you have a clearer picture and can write a better captivating summary for your business plan.
That’s how you get your business plan up. It doesn’t end here, as you would still need a lot of research on getting valuable information included in your plan. It would be very demanding having to get a plan up, but it certainly would be worth it.