A business plan is a written description of the future of your business. Creating a business plan will help you achieve your entrepreneurial goals. A document that explains what you are going to do to make your company profitable and how you have to do it.
Usually, when a business idea comes up, you know what resources and capabilities you have to start, and where you want to go in a given period (usually 3 or 5 years). But what is the way to reach that goal? Where to start? How to arouse the interest of the investors?
Make a business plan or business plan is to build a map that will guide you in this period to get to where you would propose with your initial business idea. It is vital not to confuse it with other documents, such as the financial plan or the marketing plan. The latter two are part of the business plan.
From OnlineLivingBlog, we’ve already given guidelines to create the perfect structure of a business plan. We have covered everything you need to know on “how to write a business plan?”
Also read: Why writing a business plan is important for entrepreneurs?
Now, you just need to make it happen by following the 10 steps that we explained in this post.
Why do I need to make a business plan?
To search for investors. If you need to write it is only the financial part of your business we give you the 10 key points to create a financial plan.
- To apply for loans.
- To know the feasibility of your business idea.
- To make improvements to your current business.
How to make a business plan?
1. Cover and Index
The first impression will undoubtedly influence the decision of the investors. You must include in the business plan a simple cover but perfect all the data on the company logo, name, address, phone, email, web, named after the founder and, if appropriate, a photo of the product or service.
With the index, you must sort all points of the business plan with the corresponding page number. Make it as complete as possible so that the reader gets a clear idea of what the document contains.
2. Executive summary with the needs and objectives of your business
In the first part of the document, you will have to make a detailed summary of the idea that includes the following points: the product or service and its advantages, the opportunity in the market, the management team, the trajectory to date, the financial projections, the Financing needs and expected profitability.
You must define the need or problem that your business intends to solve. But above all, you have to capture the attention of investors in approximately two pages which will summarize the main points of the text.
Also, you must take into account several things:
If you are still not sure what the fundamental objectives of your business are, you need to think carefully before you make the business plan.
It is interesting to refer to the time that has led you to develop the business idea and the work you have done to date.
Also read: Savvy Entrepreneurs Who Don’t Waste Time
3. Describe how you will solve the problem explained in the summary
At this point, you must define the mission of your business. A list of actions that your company needs to address an existing problem in the market.
Describe what your product or service, what customers get with your purchase and what their weaknesses or drawbacks. The latter is imperative when making a business plan, readers will value your sincerity a lot.
Surely there are already companies that are working for the same goals. Identify them and ask yourself: How will I differentiate myself?
Also read: 5 Reasons Why You Should Write A Business Plan
4. Explain why your business is unique and who will be part of it
Making a business plan involves examining the strengths and weaknesses of your competition, once identified you can justify why your business is unique. You must distinguish yourself from the crowd to increase the investment opportunity. At this point, you can also include the skills of your team to get to your unique business. That is, refer to the following information:
How will the management of the company take place?
Describe the trajectory and experience of each team member.
Clarify how you are going to cover key areas of production, sales, marketing, finance, and administration.
Include management accounts, sales, stock control and quality control.
Analyze, if you see necessary, the location of the company and the advantages and disadvantages of this situation.
If there is anything that values investors, it is the ability to compromise the entrepreneur. Capitalize on this point in the business plan to show them the amount of time and money that your team and yourself are willing to take.
5. List the characteristics of the market in which you will develop your business
You will have to analyze the market conditions: how big it is, at what rate it is growing and what its potential for profit is.
Explain how you are going to investigate your audience and with what tools.
Know the target market in which the business will be developed and direct your marketing strategies towards that goal. If you do not guide your marketing strategy, you will lose time, effort and money.
Make sure you solve the following investor doubts:
- What are the products of your competition and how do they create them?
- Why is someone going to abandon your current competitors to buy into your business?
6. Designing promotional strategies
At this point, it is where you should go including the marketing plan for your business. It is perhaps one of the most appropriate steps when making a business plan. Promotional and marketing strategies could determine the success or failure of your business.
To sort all this information try to answer several questions:
- How will you position your product or service?
(Compare features such as price, quality or response time with those of your competitors)
- How will you sell to your customers?
(Telephone, web page, face to face, agents …)
- Who will be your first clients?
- How will you identify potential customers?
- How will you promote your business?
(Advertising, public relations, email marketing, content strategy, social media …)
- What benefit will each part of your business achieve?
7. Analyze your sources of income
When you get to this point when doing your business plan you should start translating everything, you said into numbers. That is, analyze the financial forecasts of your business.
The analysis should include price structure, costs, margins, and expenses.
If you need more information on how to make a financial plan, we recommend reading this guide.
Also read: 8 Steps to getting a business loan
8. Create a plan to face gains or losses
If you get a bad patch early and you do not have a plan, the business could suddenly sink or fail. If you receive unexpected success instead, your goals may change suddenly, and you will need a new business plan.
Therefore, you must evaluate the risks of your business, identify the areas where something could go wrong and explain what you would do in that case.
It is very possible that after making the business plan, you need to give additional information to complement it. For example:
Market research data that you have explained in point 5.
Resume of the team that will form your company (very important if you are looking for external financing).
Technical specifications of the product or service (you can include photographs).
The names of some potential customers.
Also read: Funding a Business: How to Get Startup Money
10. Support you in freelance talent to make your business plan
At OnlineLivingBlog we help startups and small businesses in their initial phase. That is why one of the projects most demanded on the platform to be made by freelance experts is the writing of a business plan.
Why lean on freelance professionals?
Create a business plan assumes usually write more than 50 pages with engaging, dynamic and accurate texts that are able to capture the attention of people demanding. It should draw the attention of investors, who despite having read hundreds of them, must find something unique in your business plan.
How to start your own business?
10 Financial Tips for Startup Entrepreneurs
The best way to create this document with maximum tranquility and with the backing of qualified professionals is through freelance talent. Find out now, and we ‘ll help you find the best professionals to make your business plan.
Look at this infographic for tips on how to write a great business plan.