Table of Contents
What is a Business Plan?
When starting a business plan the first step is to put all your ideas in writing. And once developed and in order, you will be able to outline a business plan that is nothing more than a detailed summary of the business adventure you want to undertake.
A business plan is an expanded version of the famous elevator pitch because, among other things, it serves to arouse the interest of potential partners or investors and banks when you need capital for your project. But above all, its most excellent utility is that it will serve as a guide to stay focused and realistic with your plans and aspirations.
Elements of A Business Plan
In the following guide, we indicate the elements that must be present in your business plan:
Executive Summary Business Plan
The executive summary should be the most vital and compelling element of your business plan. And not just because it’s the first part anyone looking at this document sees, but because it also has a function of its own.
In previous lines, we mentioned raising capital. Your executive summary is the one in charge of doing the “hard work” to achieve it. Or, put another way, it is the piece of information needed to capture the interest of investors.
Company Description Business Plan
The first thing you should write is a description of your business. This part also has to be quite clear.
Start by writing your company’s name and that of its founders with their professional profile and experience. Then, include data such as the year and place of creation of your company, the needs it intends to cover, and its primary mission. Also, describe your products and services, but briefly, without going too far. You will do that in the next section.
Products and Services
List and explain your products and services and those you plan to launch. Anticipate any questions that someone who does not know them or is not even related to your sector may ask. Answer these questions extensively without leaving any loose ends.
If you are still developing your idea, describe what stage you are at and the steps you will take to move forward. Include diagrams, product images, and any visual examples you deem necessary.
Market Analysis
It is one of the most extended sections of any business plan as it can make up eight parts. In it, you must carry out a study of the market, draw conclusions about it and write a complete analysis on the following points:
Industry Overview: Analyze the market in which your business will operate (health, wellness, education, etc.), assessing the current state of the industry and changes it may experience in the future. It also analyzes the leading market players and their current offers.
Competitor Analysis: Analyze your main competitors and how you plan to compete with them. Include a complete SWOT analysis that indicates the weaknesses, threats, strengths, and opportunities of all your competitors in this section.
Barriers to Entry: Explains a new company’s difficulties in entering the market. It could be start-up costs, material or specific equipment, or patent registration.
Plan De Marketing
Having a business idea remains one thing, and another is selling and getting your product to your potential customers. This section is where you have to explain how you intend to do it in great detail.
The starting point is to have a brand. Start by reading this guide to creating the brand identity that will give you an idea of how to develop your own – from choosing your most suitable colors and fonts to making a good online identity.
Currently, There are Different Types of BusinessPlans
If we speak in terms of investment, every company must have a work plan that demonstrates what its business is made of, and this helps either a bank, venture capital, or investors to be able to make an assertive decision.
In company terms, business plans can be helpful as a guide to keep a new company going, especially in the first months or years, when the way forward continues to be defined.
Who Should Write a Business Plan?
Building a business is not a careful science. Some businesses grow organically through trial and error, while others are mapped out from start to finish.
There are some situations where writing a business plan makes sense and can help increase a company’s chances of success, for example, start-ups in the technology sector that don’t have any business history, such as SaaS companies. In addition, a business scheme can be an indispensable tool to ensure long-term financing.
When the market is new and untested or volatile, it can be beneficial to have an outline to refer to when the way forward is unclear.
Who are you Trying to Attract With Him and Why?
Keep these essential opinions in mind when preparing a business plan :
- Answer yourself: are you looking to secure a bank loan, obtain financing from private investors, or attract qualified professionals to join you?
- Please include a brief history of your business, its concept, and your products or services. Then, present it professionally and transparently.
- Do not exaggerate your experience or skills, even do not leave out any information that your investors need to know. They’ll find out at any moment, and if they find out you’ve lied, they could break off all your involvement. Trust is crucial in any negotiation.
- Explain clearly and simply what the product or service can do for others. Do not use complex language. Prevent your investors from getting lost in your words.
- Focus on the value that your business offers, how you solve each inconvenience and show that you have a market sector to apply your idea.
You must talk about the possible niche in which you will manage yourself, with relevant data, and your main competitors.
Conclusion
It is a document that stabilizes the details of your business. Here is the complete information: how to sell, what is the merchandise, how to make your plan for sale, how the financing is required, the funding and permitting proceeds, and the quotas of specific and other necessary documents.