How to write a Business Plan step by step
Lot’s of persons call to ask us about how to write a business plan and that has influenced our decision to write about this article that perfectly solves the problem of How to write a business plan.
In this global world, if you want to be successful in whatever business you have established be it online or physical, you need to know how to write a business plan. Many businesses are fantasies because they didn’t have a strategic plan on how they want to run their businesses.
Though it’s not a lie that some people didn’t have a business plan and they succeeded but the chances that those people will fail is very high. It’s not that a business plan will make a startup success inevitable, it’s not. But perfect business strategy shows a big difference between success and failure. Knowing how to write a business plan is the one that will guide and help you to achieve your goal.
Business doesn’t have to be complicated, it just has to be comprehensive and it must meet your needs. Business is also the tool you will use to convince new customers so that they can patronize your business. Therefore, it’s the key to all successful businesses. To buttress my points, I will list some of the benefits of a business plan which are:
Why you should learn how to write a Business Plan
- It grows your business faster, having a business plan is like creating a solid foundation for your business giving you the chance of building a great business on the foundation. It will help you reach your target, aim, or business goal as fast as possible.
- It increases the funding of your business. When investors read about your business and they see that your business has a strong foundation, then, they will be eager to invest in your business, thereby increasing your fund.
- It helps you to make confident and reliable decisions. If you have a business plan and you have to make a decision that you’re about to get confined, just go through your business plan and it will guide you In the decision making
Knowing fully well that a business plan is very important in establishing a business or company, then, the question now is how do you write a business plan? To write a business plan, there are some tips or key points you need to know because without them, nothing to write about your business. Note that all the points I’m about to list below are to be used when writing a plan for your company.
How to write a Business Plan step by step
- Summary of your company’s profile: This is where you briefly tell your reader or customer about your company’s good or service and basic information about your company. The summary of your company’s profile also known as the “executive summary” must contain the business mission and vision so that your reader will be convinced that the business will be successful, thereby patronizing your service.
- Company’s description: Here is where you let your customer know the full details about your company. You let them know your location, the services or goods you’re providing for them, and how it will cater to their wants. While you’re letting them know about your service, make sure you list those benefits they can’t get from your competitors and they will get from your company. This is the area that lets your reader know about your strength.
- Market research or strategy: This shows the outlook of your market and the target market. You make the reader visualize what the market could be like in the future. This will familiarize the reader with the market and let him or her have know-how about your business.
- Organization and management team: Tell your reader about the hierarchy of your company like those in authority and management committees including their duties and responsibilities. Let your customer know how the business is being managed on continual basics and the type of company it is whether it is a sole proprietorship or limited liability company e.t.c. Also, here is where you tell your reader the capital and expenses requirements required in each division
- Products and services: Tell your reader about the goods or services your company is providing for them. Let them know the merit and the demerit of the products if not used as instructed. Tell them how to manage and prevent the product from getting spoil or damaged. Explain in detail the uses of the products or services and all other information about the services or products you are providing to them
- Financial analysis: This is where you convince your reader that your business will financially succeed. If your business has been established, make sure you include the income and expenditure statement of the last three to five years. Let your reader know the cash flow of your business and if you have collateral that has been used against the loan, you must include it there. Also, prepare the future income statement for the next three to five years, including the cash flow statement, budget e.t.c. Note that you can use graphs or charts to illustrate the financial Story of your business.
- Appendix: This contains other supplementary information about your business like the resumes, the credit history, pictures of products, legal documents, license e.t.c
Those points listed above are the tips or templates you need in creating your business plan. Also, there are some key points you have to know that will help you in writing your business plan. If all these tips are taken into consideration, then, you are good to go.
Things you should know before starting a business plan
- Know your audience. When you are writing a business plan, make sure you use the language that your audience or reader understands. Do not use words that your audience will found difficult in knowing their meaning, by so doing, they won’t understand the content of your business plan. Let your business plan be simple and direct in the language they will understand for effective communication to take place.
- Make sure you have goals and objectives. A business plan is not complete if it doesn’t contain your goal and objectives I.e. where your business is coming from and the target market.
- Work through your business plan. Make sure you follow every step in your business plan accordingly so that your goal will be achieved.