A business plan provides a strong foundation for a company’s successful growth. It can bring multiple benefits for a business. Companies with a business plan are likely to grow 30% faster than those without planned strategies.
This strategic document is an essential requirement to present your business ideas, recognize goals, and track the company’s progress.
This justifies the reason why 71% of the fast-growing companies attribute their growth to a successful business plan.
With the rapid increase in stats, businesses are shifting towards a well-written plan.
And if you are one of them, you are at the right place!
This blog will explore all the details regarding this document and discuss the steps to successfully craft a well-written business plan.
What Is A Business Plan
A business plan is a document that highlights a company’s objectives and how it plans on achieving them. This document discusses the strategy you have planned to successfully bring the desired outcomes for your business.
According to research, about 69% of the venture capitalists think about the investment decision only when they are provided with a business plan!
Depending on the stage of your business, a business plan will benefit you in distinct ways. It will either help you secure funding or it will help you grow and perform better as a business. This is the reason successful companies choose to go for professional business plan writing services.
In short, a business plan,
• Provides a structure for a business
• Outlines goals and objectives
• It is useful even if you don’t want to seek investments
A business plan will summarize the roadmap you have decided for your business. From identifying the target market to successfully delivering the products to them, it takes the stakeholders through each planned step.
Benefits Of Having A Business Plan
Research indicates that 7 out of 10 venture capitalists only choose to invest in companies that have a well-written business plan. The statistics highlight the significant chances of investment opportunities a company has only if it’s prepared with a business plan.
But the advantages don’t end at getting new business partners. There are plenty of more benefits of having a successful business plan; the table below will discuss a few of them.
| Analysis | Business plans can help you predict any challenges associated with the business idea. |
| Prediction | A thoughtfully written business plan will help you recognize the strengths and weaknesses of your next steps. |
| Getting loans | A business plan Ireland shows lenders that you are fully prepared for any problems, which can increase your chances of getting loans |
| Forecast cash issues | You can make secure financial decisions based on the financial statements mentioned in this document. |
| Understanding competition | The research done for creating a business plan helps in finding opportunities through a detailed competitor analysis. |
| Building a strong team | A business plan can also be read by top talent in the industry. It can attract them to choose and work for your business. |
| Logistics | This document creates a well-organized pathway for your business by planning effective logistics. |
Steps To Create A Business Plan That Works
A successful business plan can bring favorable outcomes for every aspect of your business. It can help secure investments, convince the target market, and provide a clear picture of where your business stands.
This indicates that having a business plan is a vital requirement at every stage of your entrepreneurial journey.
So, if you are prepared with a brilliant business idea, be ready to execute it with a business plan. The guide below will help you create a perfect business plan that will work wonders for your venture.
If you are a startup, things might feel challenging initially. In this case, you can also choose to go for a professional startup business plan writing service.
- Write An Executive Summary
An executive summary is the first section that comes after your title page. This part is a brief yet compelling summary of the whole business plan. It outlines the mission, vision, goals, management, operations, and financial plans of the business.
In short, this part will give a short recap regarding your business, which will encourage the reader to know more details.
Expert tip: Many business owners choose to write this introductory section at the end. Try writing this section at the end to effectively articulate all the information you have presented in the document.
- Write A Company Description
This section is all about your company. It will create the first impression of your business by discussing all the significant details regarding it. These include the company name, its founders, business structure, target market, employees, and the location of your business.
You can provide a short overview of your product and services, but there is no need to give detailed insights.
The products and services of your business will have a separate section dedicated to them that will be discussed ahead.
- Perform Market Analysis
This is one of the most detailed sections of your business plan. This section will require extensive research efforts. It demonstrates that you have sufficient knowledge of the market and you have identified the opportunities present.
Discuss the following findings in your market analysis
Market situation: What is the size of your market? What are the current trends? Are there any barriers to entry in this market?
Market opportunities: What are the current opportunities present on growth? Is your product filling any gaps present in the market?
Market size: What is the estimated size of your target market? Is there a significant opportunity for your products?
Target Market: Have you identified the target market? What are the particular characteristics of your intended buyers? What are their purchasing habits?
Competitor analysis: Who are the competitors in the market? What strategies are they using? What are the weaknesses and strengths of your competitors? An effective way is to conduct a SWOT analysis to identify where competitors stand and what difference you are bringing to the market.
- Demonstrate Your Marketing Plan
Even if you convince the reader with your top-quality products and unique ideas, this section will still be important. It will help them in making the final decision. A marketing plan will tell how you plan on introducing and delivering your products to the target market.
A strong plan will ensure that your products have a promising pathway to reach their final destination.
So over here, you will discuss
Marketing plan: How do you plan on advertising and promoting your products?
Marketing Channels: What are the channels that will work for your brand? What % of your target audience uses these apps?
Marketing Strategy: What unique features are you going to present regarding your products? How are you going to talk about them? What tools and strategies are you going to use for maximum sales?
Marketing Progress: How do you plan on getting progress updates? How will you track the performance of the strategies executed?
- Showcase Your Products and Services
The product or service you are offering will be highlighted throughout the document. However, this section will provide all the details regarding your product. In this discussion, you need to create a list of your products and describe them.
You will then think of the following questions and provide an answer to them.
Pricing: What prices have you decided for your products? Is your audience ready to pay these prices? What is the difference between the prices you chose and the ones offered by the competitor?
If you have set higher prices than your competitors, then you need to provide a detailed justification and explain your purpose behind that.
Intellectual property rights: How do you plan on protecting the intellectual property associated with your business?
Future plans for products: Do you have plans for working on your product line in the future? How will these products be beneficial for your business?
While writing this section, you need to analyze what difference your product is going to make. The pricing strategy should be justified based on the worth of your products.
- Management And Operations
This section will focus on discussing the operational structure of your company. A solid presentation regarding how you plan on operating your business will provide a clear picture to the reader.
It will let them know that you have planned the map for your business based on a strong supply chain. Here is what you should entail in this section,
Background of your team: What is the hierarchical structure of your business? Who are the individuals associated with your business? Discuss the responsibilities handled by each member and highlight the contribution of their skills and experience.
Product Sourcing: Who will supply you with the products? Is the source reliable? Do you expect timely deliveries without any risks of delays?
Manufacturing: Discuss the production process for your products. How do you plan on making your products? What technologies are used to create your products? Do you have sufficient machinery to work on a smooth production process?
Shipping: This is the most important part. At the end, the product should be reaching safely to the customers. So you need to discuss your shipping plan over here. Are you going to partner with a delivery service? Or do you plan on looking after the shipping responsibility yourself?
Inventory Management: How will you maintain the stock levels? What are the strategies you have planned to prevent stock-out conditions? How do you plan on keeping track of inventory levels? You can also mention any inventory management software you plan on using.
- Financial Forecasts
Research suggests that companies have received 133.33% more investment capital because of a business plan. But for this, investors require numbers. They need to see how money flows in and out of your business.
A well-written business plan will give insights into the financial health of a company. It will provide a clear overview of the expected returns and projected financial estimates of the company.
This is what you need to include in this section,
Expected revenue: Provide a sales forecast based on the previous financial data of your company. If you are starting a new business, you can make estimates for the projected revenue of your business.
Projected expenses: What will be the estimated expenses of your business? What are the costs required to carry out business operations?
Capital required: How much capital are you planning to raise, and how do you plan on using it?
Moreover, for established businesses, it is necessary to present financial statements that will demonstrate the current state of your business.
Providing an income statement, cash flow statement, and balance sheets will let the investors assess profitable outcomes and make informed investment decisions.
Who Needs A Business Plan
Because of its potential to generate an 85.19% faster growth rate, everyone needs a business plan!
A business plan is a significant document in the entrepreneurial world. It is used to specify objectives, growth plans, and strategies required to expand a business. This document works for both startups as well as established companies.
This document has helped businesses receive 133% more investment capital. It provides the long-term vision of a business and attracts potential investors and lenders to contribute to the growth of the company.
Moreover, 33% of small businesses have also prepared a business plan. This means that this document works as an essential tool for businesses at any stage of their journey. It helps them keep track of their growth objectives.
Essential Tips To Consider Before Writing A Business Plan
Every business works differently. Some strategies may be the best choices for one business, but they may fail for the other. However, considering a few tips in mind can help you create a well-crafted resume.
| Identify business objectives | Begin by thinking about your business goals. |
| Start writing | After creating a strong purpose, start writing about it. Note down everything you have in mind for it. |
| Research | Invest yourself in an extensive research project to know about the market. |
| Consult industry experts | Take an opinion from industry experts. Incorporate the feedback and industry insights received from experts. |
| Review the plan | Review the plan after a few days to catch any mistakes with a fresh mind. |
Final Word
A successful business plan is a valuable tool for all businesses. Not only does it help in securing funding and investments, but it also helps in identifying the gaps present in your business. By following the 7 steps above, you can create a specific and well-researched business plan that significantly contributes to the growth of your business.
Remember, even if you are not seeking investments, a business plan is still necessary to stay ahead of the competition and build a successful empire!