Step by Step Guide for Entrepreneurs to write a Successful Business Plan

Step by Step Guide for Entrepreneurs to write a Successful Business Plan

Writing a successful business plan is the first and the foremost important step that an entrepreneur should take if he/she wants to be successful entrepreneur. A business plan is not a written statement but it is a road map; a future course of action for business. Because it is written after analyzing many factors that may impact future goals such as customer’s analysis, target market analysis, present and future financial needs and how you will achieve your target goals?

What is a Business Plan?

On the whole, a business plan is the brief description of your business; business goals and how to achieve these goals while considering internal and external factors as well as micro and macro business environment.

Why Business Plan is necessary?

Business plan is necessary for business due to the numerous reasons like:

  • It provides a comprehensive road map to achieve company future goals.
  • It provides direction that how business will overcome present and future financial constraints as money is the basic need to run a business.
  • It helps you to understand whether you should enter into the market because when you write business plan you consider all factors; favorable and unfavorable. You evaluate risk and opportunities which is very beneficial for business success.
  • A business plan is also necessary because it aligns strategy with business goals.
  • New businesses almost always required cash flow to grow. That’s why a well written business plan helps entrepreneur to raise money for business.

Overall, business plan is a successful bench-marking tool to evaluate risks and opportunities; achieving business goals; future growth; maintaining cash flow; developing investor’s interests, analyzing market trends; customers and clients preference. Especially it tells that why you are there and how you are beneficial?

Things to consider while Writing a Business Plan

Actually your business plan is the description of your idea: how your idea will evolve over the time and how much your idea has the potential for growth both from investors and customers prospective. So, writing a winning business plan can be proved a challenge. However, my tips will prove helpful for devising  your business plan as well as for long term survival and growth.

Following is the list of tips for successful plan:

1-Market Analysis – Market Research: No doubt, every entrepreneur seems full of confidence about the success of his/her idea. However, market research is very essential to evaluate the viability and scale-ability of product or service. It is also very essential to understand target market demands i.e. customer’s needs and demands. Market Research will help you to gather useful information for further analysis of your idea; especially for decision making. In addition, market analysis will provide you reliable information based on facts and figures. However, while conducting market research for business always consider to take measures which make research reliable and valid. Therefore, it is important for every entrepreneur to conduct market research to understand the feasibility of your idea as well as strength and weaknesses of your project.

2-Understandable: A good business plan shows the mission and vision of your organization. So, it must be attractive, clear, concise and understandable. It should address all detail like what is the purpose of your business? How your business beneficial for community as well as different from others? A clear and future oriented business plan will help you to lure investors; getting loan from banks. It also shows your commitment about your project.

3-Reason for your Business: It is very important to clearly mention the reason for your business. How and what problem your business, product or service will solve.

4-Target Market: For the success of every business; every businessman should know its potential customers so that he/she can plan competitively by devising better sales and marketing strategies. Knowing potential customers and well researched knowledge of market will be beneficial for assessing risks and opportunities as well as to gain competitive advantage over competitors.

Common Structure of a Business Plan:

Executive Summary

An executive summary shows the purpose of your business and provides quick overview as well as concise analysis of your business. What to include in Executive Summary:

  • Purpose of your business, product or service.
  • Target Customers; target market.
  • Business financing need and how to meet those needs.
  • Mention reasons for success.
  • Company information for shareholders.
  • Marketing Plan for growth.

Always write executive summary concise, justified and have a conclusion to show the worth of business for potential customers, investors and shareholders.

Mission Statement

Mission statement shows the purpose of the organization and helps to formulate future strategies. Following points should be include in mission statement:

  • Purpose of the organization.
  • Future objectives of the company.
  • Why you are unique?
  • People focused.

Company Background or Description

Company summary is also an important part of the business plan as it provides brief description of your company. It is the introduction of your venture. So it is very important to consider following suggestions while writing company description:

  • Short description of your company history.
  • Who is the key player to run  business operations?
  • Company structure.
  • Company finance and funding.

Product or Service Description

This part of a business plan describes your product or service. Here you will write about all services or products you are offering. So consider your customers and write it as simple as possible, so that every reader can understand easily. And Always  try to include below mention suggestions in your business plan:

  • Why your product is best than competitors?
  • How you are credible?
  • Your future goals about innovation and product expansion.
  • How your offerings fulfill the demands of audience?
  • How you will carry out your operations.
  • Your success factors.

Marketing Analysis Summary

A successful marketing strategy is the key to success for any type of business. It is the foundation of your business. It shows the efforts to achieve specific future goals and growth. The main purpose of the marketing strategy is to pursue marketing opportunities; especially to gain competitive advantage. It helps to ensure that a product or service is marketed for the benefit of all stakeholders. It provides the way to use resources effectively with the help of tactics to achieve organizational objectives efficiently. Therefore, marketing section of a business plan must address these concerns:

  • Information about target market.
  • Marketing objectives.
  • Marketing mix strategy.
  • Market development strategy.
  • Market penetration strategy.
  • Market analysis.
  • Marketing & Sale plans.
  • Target customers.
  • Market needs and how you will be able to fulfill those needs?
  • Competitor analysis.

Strategy and Implementation

In this section of a business plan you will describe your strategy to satisfy your customer’s needs.  This section will show your competitive edge that how you are better than others for particular service or offer? Here you should also mention briefly about your sales strategy.

Management Information

In this section of a business plan you should mention your management team and their expertise in business. For example, ABC consultant has served more than 150 satisfied clients. Following things should be include in this section of a business plan:

  • Business structure.
  • Business team.
  • Management and other personnel salaries those who are involved in business.
  • How the business is managed.

Financial Analysis

The financial section of your business plan should contain following detail:

  • Your present financial detail.
  • Your future financial needs for growth.
  • Estimated present and future operational expenses.

Appendices

The appendix is the overview and supporting information, especially your previous statements regarding business. Here you can put each and every relevant data such as marketing material and any research.

Finally, a business plan is an essential contributor for your business success. It provides direction to your business. It attracts investors as well as team members. Therefore, always try to consider above mention point while writing a business plan or hire a team of professional.

In this regard, we can help you to write your business plan by performing market research. Our team of professionals also has an expertise to perform market research; capability for analyzing future growth of your business as well as consumers future needs.

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