Surely you’ve heard the expression that the failure in planning disaster plans. This statement is not far from the truth.
Many entrepreneurs are wondering how to make a business plan? A business plan is usually written when you have to provide the finance of company. However, your business plan is much more than just a document to a bank and an investment. This is an invaluable roadmap and guidelines for the growth and expansion of your business.
To make a successful business plan, you should investigate the many factors that measure the success of your business. How to make a business plan is an eternal dilemma. This challenge can be used as an advantage in understanding the weaknesses, strengths, opportunities and threats that prevailing in an environment. Make a good business plan means to see the market before plan makes come true and all depends on the initial ideas for the job.
How long should a business plan be?
The average business plan has between 15-20 pages but you don’t have to look at that too much. The length of the business plan depends primarily on the nature of your business needs and the size of the investment. If the business is more complex, the environment is more competitive, and investment larger, so it is necessary that a business plan has more details. It takes a lot of words to say to convince investors that it is right to invest a lot of money in your business and that will not make a mistake. If it is a simpler business, time and business plan will be simpler and shorter.
The main thing that you have to keep in mind when you are writing a business plan is its purpose and to whom it is intended. Why do we emphasize this? Because there is a large number of potential customers of your business plan:
Company -on the basis of a business plan sees the vision, business strategy and sets goals
Banks and other financial institutions – based on your business plan, estimate how much you are able to start and run your businesses
Management Team – because of monitoring the implementation, control, and understanding of the future actions of company
Employees – to understand what is expected of them
Strategic partners -to assess whether your ideas coincide with their mission and plans
What a good business plan should contain?
Minimum content that must cover the following:
– Detailed definition of business idea with an explanation of its advantages over the competition
– What is your product / service
– How you will produce it
– What do you need to sell the product
– How you will bring your product / service to the market
– How you will present your product / service
– How much money do you need to start and run a business
– When the work will begin to generate profits for investors
– Why this business has a chance to be successful
– A list of the main challenges that your business faces with in achieving success;
– The way of generating revenue through marketing, sales, and promotional activities.
We recommend that you, before you go into making a business plan, previously collect and organize all the necessary documents, verify the accuracy of the information and perform the necessary analysis. Define who intended business plan is, define the areas in which you need professional help because the business plan required that every part is expertly processed and that the presented information is accurate and credible, identify management team, complete analysis of the market and competition and prepare all documentation you are planning to put in support of the business plan.
Therefore, the business plan has several concurrent tasks, to provide credit, to allow the investor insight into the operations of the company, but also to define all the stages of the business and point out any deficiencies. Be sure that the potential investor read your business plan to the smallest detail before deciding whether to invest in your business or not. He’ll want to see the stability of the development of your company in the future and your business plan needs to convince him. Business bank, a potential lender, before you extend credit, will want to see that this way you can recover money. Therefore, make sure the plan should be readable and clearly and simply written.
Standard contents of a business plan typically include the following sections: summary, management, and professional organization, product / service strategy, competitiveness, implementation plan and operating plan, financial plan, a plan of growth and development, as well as certain allowances, contributions. Every part of the business plan is an important link and prerequisite lighting business ideas from all aspects.
Summary is the part that contains the description of the company must to be concise and to directly reflect the essence of entrepreneurial ventures.
Management and Organization
Quality management team determines business success. High-quality management team very often predetermines business success, often to a greater extent than the product or service. Hence you need to invest in both your knowledge and the improvement of knowledge and skills of the team that gathers and it needs to be an ongoing process.
Product / Service
In the part relating to the product and service, you need to the best way describe and present their competitive advantage.
Description of the product or service is the beginning of creating a base for defining the marketing plan, which is an important part of the business plan and is a market research. Marketing plan actually contains data relating to customers, competition and branch of business where it belongs. Necessary to clearly define customer needs and see who are potential users of a product or service. Every product or service has to be your competition to know as much as possible in order to be able to formulate its own strategy for competitiveness.
Formulating a strategy for competitiveness
Marketing strategies should affect on the customer, and make him buy exactly your product and that it is based on profit. It includes pricing strategy, market positioning and plans promotional activities.
The production plan and operational plan
The production plan includes technical and technological analysis and operational plan that includes organizational and dynamic aspects of the action plan in a given period of time.
The financial plan includes state funding for the next period of the ways of providing such resources and the expected level of sales, costs, and profits.
Plan for growth and development
The plan of growth and development are newspapers, new products or services that the company will offer to the market after a certain period of time, what are the new market segments.
Accessories / attachments
Annexes and amendments to the business plan may be different statistics within business, results of research, catalogs, advertising material, price lists and more.
Preparing a business plan goes into business planning as a process which is particularly important for the vitality and long-term stability of the projected business. The main objective of every entrepreneur is successful competitive company that is able to survive and earn.
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