Write a business plan is an essential step for a company that wishes to raise funds or a bank loan to finance its development. It can be designed ahead of the establishment of the company or later, at the launch of a new activity for example.
What is a business plan? What is it used for?
The business plan is a document that aims to demonstrate the future success of your project and your ability to create value for customers and investors in a sustainable way. It outlines your business strategy and projections of growth in the short and medium term society.
His priority is to attract potential investors by demonstrating that your business idea is viable, relevant and serious. It must include a market analysis proving the existence of an unmet need and the ability of your business to respond.
- 10 Tips for Generating Outstanding Business Ideas
- 10 Super Low-Cost Business Ideas You Can Start Within a Within 7 Days
How to write a business plan? 7 Steps to Write A Plan
There is no single template for writing a business plan for each business or industry has its own specificity. The document must be tailored to the caller: a banker will not be interested in the same information that an investor-entrepreneur. However, there are a number of elements that are found in all cases:
An executive summary of the business plan
The executive summary or executive summary summarizes the key points of the business plan, the most accurate way possible. This synthesis (written last) is undoubtedly the most important part of the document, which will be read by all investors and will make them want to browse the following. therefore treatment must be special.
- Recommended: 8 Tips To Develop a Successful Business Plan
The context of the project launch
It is useful to recall the genesis of the project, the current means you have (your facilities and equipment) and the organization of the company (legal form and the distribution of capital): Who are you? Who are your partners? Where does the company? She has achieved so far?
The presentation of the project team
Present the project leader and key figures of the company with a summary of their career, their complementary, their technical or business skills. Also specify any contacts they have on the market.
An analysis of the market and customer needs
It is imperative to carry out an inventory of the market with the major trends running through it (the size and evolution of the ecosystem), and actors that structure (target customers, actual or potential competitors). Do not hesitate to go to the field to meet your clients or prospects and give a concrete return on their expectations.
Recommended: 10 Tips For Writing An Effective Business Plan For Its Startup
The description of products or services
Describe the product or service you offer and distribution channels. If it is technical, try to make it understandable by all. It is also necessary to clarify what are the needs that your solution will meet and your business model. Why these needs are not met? What are the benefits of your solution compared to the existing offer? Hence your business will derive its revenue?
The sales and marketing strategy
The idea is to present how you will use the funds allocated (research, equipment, marketing, commercial activities…) and your communication strategy. What investments you plan to make? What recruitment are you planning? What aspects of your communication plan?
- 10 Keys to a Successful Digital Marketing Strategy
- How to Write a Marketing Plan: A Step by Step Guide
Funding needs and projections
In this part, it should be stated what financial resources you need to complete your project and goals (realistic) that you set. It should include forecasts for several years for sales, expenses and operating income. What is the number of customers or revenue referred to various maturities? When do you hope to achieve a return on investment? How much? What are the risk factors?
- Start Up Financing and the Importance of your Business Plan
- 5 Financial Mistakes Small Businesses Make