Every company, business or organization must have a business plan in written form. Its purpose serves both providing direction and attracting investors. It plays a vital role in determining the success of your organization. Hence, the question: How to create a business plan? The typical business plan usually has the following sections:
- A glimpse of your business – Executive Summary
- Description of your business and its expertise – Products and Services
- Scope of your business and your competitors in the market – Market Opportunities
- Marketing plan and sales strategy – Sales and Marketing
- Your business and management structure – Organizational Structure
- Financial breakdown and projections – Financial Analysis
Steps of Practical Business Plan
Now, you have got the outline. What’s next is getting started. So, here are some steps to write the most practical and achievable business plan.
Study and Research your Company, Product, Market, and Competitors
To write the most practical and achievable plan, you must know all the information about your company, product, the scope of your product in the market and its competitors. Talk to your audience and industry leaders to know everything about the industry that you are entering. Consider spending more time researching and studying than actually writing a business plan.
State why are you writing the plan?
A business plan describes the future of your business, a written document telling what and how you plan to do it. It contains your business goals, methods on how to attain those goals and time frame within which these goals need to be achieved.
Your business plan serves many different purposes. These purposes include
- The road map that provides directions in which a business might go to and avoid obstacles along the way.
- This information is important if you are funding your business on your own or bootstrapping your business.
- Furthermore, if your purpose of writing the business plan is to attract investors then your plan has a different purpose. In that case, you will write a plan that should be friendly and eye candy for the investors- it should be clear and concise as possible.
Create your company profile
When you create your company profile, make sure you include the history of your organization, products/services that you are offering, your targeted market and audience, resources that you’re using, problems you are solving and the things that make your business unique.
Company profiles are used to describe your company in your business plan and they are also used to attract potential customers and to recruit talent. The latter company profile is usually found on the company’s official website.
Create a document for every aspect of your business
Investors want to make sure that they receive a return of their investment. It is because of this expectation that they want every information about your business. To help you with this process, you should document everything from bigger stuff like your expenses, the flow of cash and industry projections to minor details like your location strategy and licensing agreements.
Create a strategic marketing plan
Business plans become great when they include a strategic and aggressive marketing plan. But first, let’s define the strategic marketing plan. It is defined as a road map for you to find or create methods to sell your products/services and it also includes methods to compete with your competitors. The Effective strategic plan contains the achievement of the following marketing objectives:
- Introduction of new products/services
- Expanding your marketing scope for your existing products/services
- Exploring new horizons for your company
- Selling a particular product more. Clearly, the state where does this business come from?
- Sell diferent product to existing customers
- Making long-term contracts with desirable clients
- Raising your prices for your products/services without reducing your sales
- Improving a product/service
- Create a content marketing strategy
- Improving manufacturing or product/service delivery
Each of your marketing objectives should involve many subsets of objectives and tactics to smoothly achieve those marketing objectives
While writing your objectives of the marketing plan, your focus should be on what are the marketing tasks and why you should finish them. These tasks should be for the year ahead. Your focus should be changed to practical stuff when you start writing about implementing those objectives. In the implementation section, specify who, where, when and how. Afterward, start planning budget allocation. Allocate a budget for each activity planned.
- Your plan should be generic enough to tweak it for each purpose
The people who would read your business plan are different based on what is the purpose of your business plan. As the purpose changes from self-funding your business to attracting new investors, the potential readers of your business plan also change. They could be bankers, investors or employees. This group seems like a diverse one but it is a finite group with each type of reader has certain interests and expectations. Your life would become easier if you know these interests beforehand when creating a business plan.
- Explain why is it important to you
You create an emotional connection with the intended people when you explain why you care about your business and the plan. This emotional connection secures their support and helping your organization moving forward. Therefore, your plan should depict your passion and dedication to your business and plan. You could share your lessons learned, problems you’re going to solve, values that you hold dear and traits that make your business unique.
500+ Free Business Plan Samples
You can get a variety of any business plan samples of
- Restaurant, Cafe, and Bakery
- Retail and Online Store
- Medical and Health Care
- Beauty Salon and Spa
- Wedding and Event Planning
- Wholesale and Distributor etc
You can check and download these Samples here.
Business Plan Template Pdf
You can download and edit the PDF Template of the business plan.
Remember, write your business plan according to the size of your business. Your business plan should not be bigger than your business rather it should be as big as your business needs. Furthermore, it can be very helpful if you view some completed business plans as you plan and write your business plan.