What are you planning to do with your business? Do you have a business plan? If no, then there are some tips for you!
Don`t you know how to write a business plan? Do not panic! It`s easy to teach you with providing business models! It's simple! How to write a business plan? This question is very often asked, most people who have dared to open or have already opened their business! Everyone knows that a properly written business plan is the key to the successful development of any company. Completed business plan should describe your expectations from the new (or existing at the moment) business and talk about your great business ideas to a prospective lender. A business plan is an original document, after the preparation of which all the issues related to business should be resolved without further explanation. A business plan is a working document that can be reviewed and edited along with the change of the current plans and strategies.
Therefore, in this article, you will have some tips on how to write a business plan!
1) Initially, make a description (abstract) of the project
It is one aspect of your business plan, even though it should be a last resort. It is necessary to explain your strategy and vision of the project (what you desire to do), to describe the market and the capital that you need (what you intend to do with it), and your competitive advantage. Long story short, it`s a mini business plan, which allows people after reading it to explain to anyone what is your business. Moreover, do not stick to complex forms of the business. This phase of the worksheet is to be presented to the public. Therefore, the information and the formula of the business should be easy to grasp.
2) Specify the name of the company
You must specify the name of the company, the relevant licenses, what is the form of ownership, legal structure, a brief description of the product or service and what you plan to do (provide services to engage in retail trade, wholesale trade, and manufacturing). Specify the address of the company, the required area, lessors. Indicate whether your business is new or an extension or purchase of a ready business. You should describe the goals and objectives of the company and any planned changes. Therefore, people will work with honest players of the market, rather than cheaters. So, in this case, play fair and hide nothing.
3) Analyze your market
Outline the implementation of the market and consumer`s segments for each of the segments of the market. Specify the scope of the market, moving it into profit for three years, and analyze the increase or decrease of your income with the growth of the market. What value do you want to receive for the service and products to achieve profit and be competitive? Explain why the buyers agree to pay you a specified price. Moreover, chose your adaptation strategy in the realization of this part of the plan. So, you would have answers for every question of the bank. Remember, that if you choose your segment correctly, then you would stay firm on the growth of the business.
4) For the preparation of a business plan - tell about products and services
Tell people about your proposals for goods and services, that on which the consumers they are calculated, what benefit will be for buyers. Justify why your products or what you have to offer is better than products of your competitors. Also, explain how you made product search, and if you intend to produce raw materials. Therefore, this step explains, why your services or products would be profitable. Do your competitors have the same services? How would you distinguish your services from their ones? What is the ace of your business that can help you to become if not a leader, but in the top of the industry you choose?
5) Outline your business strategy and its implementation.
Show how you intend to take on the existing market niche. Will you use advertising or visit trade shows? Would you provide samples of your production to the customers? Will you choose direct marketing by exploring hot calls and cold calls? Will you go online? Is there any chance that you can provide an app for your business, website or page in a social network? Will you hire people to share flyers with the advertising of your business? Will you use SEO services to bust up your business on the internet? As you may have noticed; the choices are quite variable. Therefore, pick the most appealing to you.
6) Do not forget about the competitors
What about are your five major competitors? Explain why the products / services provided by you are better than the others. How stable is their market? Does it develop or fall? For what reason? Highlight their strengths and weaknesses, how you intend to act? How will you monitor the activities of competitors in the future? Moreover, the competitors are your friends! The wise man learns from the errors of his competitors. If you have some competition in the sphere of the market you have chosen, then analyze your rivals` path to the success. If you wish, copy it or at least learn from it. The best man rises in the competition!
7) Features of your production
Specify how the production will be carried out. How will you make it? Where will you produce it? Specify the strategy for the delivery of goods and services, what are your financial policies, and how are you going to get the debts from their debtors. Also specify how many employees you need, what skills they should possess, will you teach them? It is necessary to clarify what kind of equipment and related technology you need. Remember that you need to take into account the legal and licensing aspects related to the future of business.
8) Describe the organization of the working process
Who will manage the company? Include a summary of key managers. Label job descriptions of key personnel and a list of relevant consultants. Calculate the estimated cost of financing. Indicate whether they need special education for your job. What are the qualities you see in your future employees?
9) Do the financial calculation
Calculate the costs associated with the creation and rental of the company. If it is ready, then describe the business financial history or prospective financial performance during the three years after the start of business. Enter monthly incomes and losses for the first year and quarterly payments for two years ahead. Also, count the cash flow and current financial statements.
10) Keep the accompanying documents hands
The business plan must be a summary, job descriptions, letters, records, credit history, written commitments, lease and other documents, market statistics and so on. Remember, that nobody will deal with a company without clear legal docs and honest history.