How to write a business plan? This question is often asked by most people who are thinking of starting their own business, starting a startup, or finding an investor. Also, this question is asked by students of business universities. A business plan is a document that answers all questions related to your business and provides a comprehensive view of the company’s performance in the long and short term. Sounds confusing, we agree. That is why we decided to create a step-by-step guide for you on how to write a business plan.
1. Create a Business Plan Structure
The business plan has a complex structure. The entire life of a company from the moment of creation to the moment of stability and stability should be spelled out in business language, at the same time intelligibly and vividly. A business plan should be understandable to any entrepreneur, financier, and banker, as well as potential partners.
A business plan should always be short and succinct. True, sometimes, in order to reveal the essence of the problem, it is made quite deep in content. The recommended volume: 30 – 70 pages, no more. And all additional materials should be included in the attachments to the business plan.
Remember! It is important not to provide too much information.
Also, it is important to soberly assess your capabilities and if you realize that you may not be able to draw up a high-quality business plan yourself, then you should not be afraid to contact WriteMyEssayOnline for help, where professionals will definitely help you with this.
2. Conduct Market Analysis
From the already developed business strategy, transfer the market analysis into the business plan. Competitors’ proposals are worth considering in even more detail.
For example, in the case of an online accessory store, competitors will be not only online accessory stores, but also gadget shops, gift shops, supermarkets, and private craftsmen making accessories to order.
Based on the research, you have to come to a conclusion: what market share you can claim in such position. For example, you may plan that in the first 2 years of your presence on market, your online accessory store will account for 25% of the city’s online accessory sales.
3. Study your Audience
Write a business plan in a language that your target audience will understand. For example, if your company is in the scientific field and your potential investors do not understand complex terminology, you must adapt to the needs of your investors.
Focus on investors. Describe your product as simple as possible and avoid complex terms. It is better to put more detailed information in the appendices.
4. Write a Resume
One of the elements of writing a business plan from scratch is writing a resume.
This element is always located at the beginning of a business plan and contains some brief information about it, forcing people who decided to familiarize themselves with the content of the document, become interested in it, and continue familiarization.
This is most important when looking for potential investors and lenders.
Despite the location of this element in the document, the founder does not begin work on it before writing a business plan for a small business, since a resume is a section that provides consolidated information from the rest of the business plan.
Accordingly, the work on the resume is started last by the founder – this is, for the most part, the business card of the project for external users of information.
The main points that counterparties want to see in the resume are usually the possible level of return on investment in the development of the project, as well as the risks assumed for such investments.
5. Consider Costs and Production Schedule
This chapter includes the purchase of the necessary equipment, repairs, rental of premises, and other costs. In the production schedule, it is necessary to reflect on how many people are required to implement the project, the schedule of their work, the deductions of wages, and related payments. Small business plans will become much more attractive for the investor if there is a ready-made team that will work on the project, as this proves the entrepreneur’s ability to implement his/her plans. Therefore, it would be appropriate to emphasize this fact in the business plan.
A business plan is worth writing for many reasons, but the main one is a clear algorithm of actions by which you can quickly get from point A (your current position full of hopes and fears) to point B (in which you will already be the owner of your own successful business stably and regularly generating income). This is the first step towards realizing dreams and confident middle-class status. We hope that our guide has helped you significantly and that you can easily draw up your business plan.