|
Getting your Trinity Audio player ready...
|
Making a perfect business plan is necessary for having a good start in business. It is not necessary to have a business degree to put together a great business plan. It is not very complicated or complex. We have brought a step-by-step guide for you to make a perfect business plan. You don’t have to worry at all.
Once you follow the steps you will learn how to make an excellent business plan for you to kick start your business.
Also Read: 5 Easily Implementable Blog Monetization Strategies
Six Components of a Business Plan
If you planning a business to raise money grow your business or just explore your business idea. Just follow the guidelines jotted below. It will give your business a perfect outline to start with.
Also Read: How to Start Your Own Business?
1. Executive Summary
The executive summary is an overview of your business and your plans. This tells about your company, what you want to do and what you expect from readers. This is the very first step in your plan. Your executive Summary should be of a page or two. But generally, write your executive summary at the last.
Your summary should contain one sentence giving an overview of your business. Further, identify the problem in the market and summarize it. Now introduce your product or service which shall fill in the gap.
Also, identify the target audience for your product or service. After this find out the competition you would face in the market. Check your financial plans and find investors.
Also Read: How to Have Better Customer Conversation
2. Opportunity
Opportunity is to know what are you selling and how are you solving a problem or the need for your market. It is also to understand the target market and competition you would face.
It includes information about the problem that you’re solving, your solution, who you plan to sell to, and how your product or service fits into the existing competitive landscape.
This analysis also helps you to highlight your business differently and figure out the offerings in the future. These data should be backed up by market analysis and market research. You should evaluate the total addressable market with a segmented market and find out your market share.
Also Read: 50 Most Profitable Business Ideas in India in 2024
3. Execution
In this step of a business plan, you need to find answers for how are you going to take your opportunity and make it a profit-making business. It mainly includes your marketing and sales plan, operations, milestones and metrics for success. Marketing and Sales plan cover how you would market your product or service to reach your target audience.
A sales plan will help you to find the pricing you will proceed with. While deciding about the prices you need to consider your cost along with the profit margins and make sure that your prices are not beyond market standards.
You need to further dig down for types of advertisements to be done, various operations to be considered and various distribution networks to be tied up for.
Also Read: 25 Small-Scale Manufacturing Business Ideas in India in 2024
4. Company Management Summary
A great idea is converted to great business only with great teams. And this is precisely what investors are also keen to know. In this step, you need to identify the right people and how to hire them. You need to be ready with your legal structure and the location of the company.
It is said that investors invest in people or the team of the business as they have an assurance that the team will convert the idea into a great business. Start with a structure of people in the company. Make a proper job description for each role. You can complete the team as and when you proceed with your business but having the right person in the right role is of utmost importance.
You should not fill in the roles to satisfy egos. Include a proposed organizational chart in your business plan. This could be asked on several occasions such as while asking for funding. Now once you have identified and filled the key roles put other business requirements in place. Make sure you have made your vision and mission statement.
Know about your Intellectual Properties. Make sure the business structure you have made is given proper ownership of each task.
Also Read: Top 25 Best New Business Ideas in India With Low and Medium Investment in 2024
5. Financial Plan
Your business plan isn’t complete without a financial forecast. We’ll tell you what to include in your financial plan, but you’ll want to start with a sales forecast, cash flow statement, income statement called profit and loss statements and your balance sheet.
The typical financial plan will have monthly sales and revenue forecasts for the first year. Further, it will also have annual projections for the three to five years.
Three-year projections are typically adequate, but some investors will request a five-year forecast too. Once you are done with the broad plan you need to drill down to fine-tune it.
6. Appendix
If you need more space for product images or additional information, use the appendix for those details.
In the upcoming sections of this article, I’ll dive into the details of each section of your business plan and focus on building one that your investors and lenders will want to read.
It is a useful place to stick any charts, tables, definitions, legal notes, or other critical information that either felt too long or too out-of-place to include elsewhere in your business plan.
Also Read: 70 Latest Part-Time Jobs and Online Jobs from Home in India (Earn Up to Rs. 40000 Per Month)
Business Planning Made Easier
Before you get started with your business plan, let’s talk about some “rules” that will make the whole business planning process easier. The goal is to get your business plan done so you can focus on building your business.
Also Read: 7 Amazon Work From Home Jobs To Try in 2024 | Make Money With Amazon Online Jobs
1. Short and Simple
Business plans should be short and concise. The reason is firstly, you want your business plan to be read and no one be interested in reading a 100-page document. Secondly, your business plan should be a tool you use to run and grow your business, something you continue to use and refine over time.
An excessively long business plan is a huge hassle to revise—you’re almost guaranteed that your plan will be relegated to a desk drawer, never to be seen again.
Also Read: 10 Easy Ways to Earn Money from Facebook Online | Ways to Make Money on Facebook
2. Target Audience
Write your plan using language that your audience will understand. Accommodate your investors and keep explanations of your product simple and direct. Use terms that everyone can understand. You can always use the appendix of your plan to provide the complete details if needed.
Also Read: Online Typing Jobs from Home Without Investment | Work from Home Online Typing Jobs
3. Don’t Be Intimidated
The majority of business owners and entrepreneurs aren’t business experts and don’t have MBAs. They’re learning as they go on. They keep finding tools and resources to help them.
Also Read: How to Earn Money from Google Online Jobs? | Get Paid from Google while working from Home
Read More:
- 15th President of India Droupadi Murmu | Droupadi Murmu 2nd Women President of India
- Top 5 Different Types of Airport Security Jobs in 2024
- Every Taylor Swift Album in Order Of Release
- Top 10 Best Places to Visit in France
- Different Types of Passports in India | Types Of Indian Passports Every Traveller Should Know Of!
About Author
