Before you start your business, you need to have the right plan in place to ensure your success. A lot of people don’t believe that they are necessary for success, after all, if you know what you want from your business, you should be able to achieve it based on knowing what you want, right?
Wrong. Every business needs a written plan. It’s not just for the small business loan that you want from the bank to help you move out of the spare bedroom and into an official business premises. It’s about being able to get the right direction from your own words and can be the best thing that you do for your organization. So, the real question isn’t whether you need a business plan, but how to write one.
As you are planning your new business there are several elements that your business plan should always include and this list can help:
- A snapshot of your business, most commonly known as the executive summary
- The company description detailing what you do
- Market analysis, which includes research on your industry, the market and your competition
- Your management structure
- The products or services that you’re offering. This is the core of your business.
- How you plan to market your business and the strategy for your sales
- How much money you plan to borrow - this should be clear
- Your financial projections, such as balance sheets
- The appendix, which should include any permits you’ve obtained and your CV or resume
To write the perfect business plan, you need to take your time. Researching and analyzing your product and the market that you are hoping to break into is important and you should think about spending more time researching than you do actually writing your plan. Knowing your company thoroughly inside and out is going to help you to know your market. Once you’ve done all this, you should have clarity on the purpose of your business plan. Is it to be used as a guide, like a recipe for how you want your business to go? Are you looking to attract investors? You need to be as concise as possible, here, because defining these goals is vital for your future.
Your business plan has to identify your marketing strategy and it should be as adaptable as possible based on your audience. You should also use your plan to explain why you care so much about what you hope to do. You could be supplying a solution to a problem that no other business has ever managed to do, and this could include listing your values and talking about why you stand out so far from the competition.
When you explain in your business plan what your business does and why you are passionate about it, you create an emotional connection with those who you need to support your organization going forward. Your business plan is your spirit and it’s your outline for your future success - make it a good one and you’re more likely to find the right support.