Writing a business plan is easier than you think. There are no extra activities needed to write a well-working and consistent plan for your startup development. Some of you may even wonder why you need a business plan. Simply put, it’s like a map that guides you to your goal.
In today’s article, we focus on business plans: how to create one, and which are the most important steps that you have to take care of.
What is a Business Plan?
A business plan is a document that shows how a new business is going to work. It contains a marketing strategy, financial projection, and detailed descriptions of the business and its management team. A well-written document should be constantly updated, depending on the development and growth of the company.
Of course, business plans can serve as a base for the concept presented to investors. You only need to add some details, and the main idea is ready.
Identical for Everyone?
It’s worth remembering that there is no single correct answer to what a business plan should look like. It all depends on the scope of your company’s activities and business goals. Most ready business plans can be divided into two groups: the skinny startup business plan and the traditional one.
A business plan for a startup is often a one-page document containing only the most important information about the organization. It’s perfect for all companies that are starting their adventure with running a business.
A traditional plan is a more complex document, which can have up to 50 pages. This type is recommended for companies that have gained experience in their field.
5 Fundamental Elements of a Business Plan
To create a proper business plan, you should focus on five key elements of both the skinny and traditional plans:
- Description of the Company
One of the most important elements of these plans is the company’s description. It contains a short company history, location, and number of employees. What’s more, it includes all the needed information about the company’s founding, its founders, and much more. - Details about Products and Services
This part of the plan should focus on details connected with products and services. Additionally, you can include information about qualities, marketing plans, prices, and advantages. - Market Analysis
Market analysis is crucial for your company’s success. You can list a description of your target customers and their purchasing behavior in your business document. Additionally, you can include the demographics of the people you’re targeting with your product to help secure funding. Market analysis is a key feature of any business, so ensure you do thorough research. - Implementation
Ideally, you should write a business plan with complete implementation strategies. The implementation section is a detailed explanation of how you intend to achieve your business growth goals. In this section, you can list your marketing and sales strategies, along with promotional activities. Additionally, you should add schedules for each activity to make the business plan format more attractive. - Finance
If you’re hoping for co-financing, it’s worth writing down a business plan that will contain all details about financing. This helps you gain the trust of potential investors and gives them knowledge about your plans connected with spending money on development.
The Seven Parts of a Business Plan
Here is the expanded version of the business plans. Some of the steps overlap with the points from the previous paragraph.
- Summary
Start your business plan with a short description to showcase your business and its goals. - Description of the Company
As previously mentioned, this section should contain a short company history, location, number of employees, information about the company’s founding, its founders, and more. - Market Analysis
Market analysis remains crucial. Include descriptions of your target customers, their purchasing behaviors, and relevant statistics to support funding efforts. - Competition Analysis
To survive in today’s market, you need to know what your competition is doing and how your services stand out. In your business plan, name your competitors, describe their services or products, and explain how your ideas are more attractive. - Executive Plan
The execution plan outlines how you intend to achieve your business goals. Mention how you and your team will accomplish what is written in the document, detailing who, what, when, where, and how you intend to achieve your goals. Include details about the qualifications and experience of your management team. - Marketing Strategy
This section should include your marketing strategy, including promotional methods, marketing assets, brand messages, and a timeline to engage your customers across channels. A marketing SWOT analysis is also essential to understand the internal and external factors influencing your marketing strategies. - Financing
Again, if you’re seeking co-financing, include all details about financing. This helps build trust with potential investors and provides insight into your plans for spending on development.
No matter if you’re a startup or an established company, a business plan is crucial for understanding your company and gathering the most important information in one place.
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