To start a business you need to have a business plan, a road map, taking you on the strictest and fastest route to where you want to go, i.e.to reach your main goal of opening this business. Your business plan will include six basic sections and will help you think through your business idea, making sure you have covered all the angles and eventualities, before you set off to start your business. Whether you are preparing a business plan for a non-profit organization or a profit-making entity, it should always be aligned to the goal.
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- Executive Summary
This presents an overview of your business and is quite vital as many investors will make judgments about your business based upon this alone. Although this is the first section, the best thing to do is to write it at the very last, as once you have written the others it will be easier to write about, as this will be the summary of the key points you cover in the other sections.
- Business Details
In this section, you will need to provide a short description about your brand; your product and services, what is your target market and what impact will your commodity make. Also mention the location of your business, the key employees and the USP’s of your product that will help it to stand out.
- Marketing And Sales Strategy
This is your space to impress people and show them that you have done your homework. You have to assure people that you understand your target market, by outlining why you think consumers would be interested in buying your product and detailing on how you want to sell to them. Marketing a product is more than half of selling a product. With strategic marketing plans you can not only convince people to invest in your business but also be successful to provide them with the expected outcome.
- Management Team And Personnel
This is very important as the people reading your plan need to believe and have faith in the management of your business. Highlight your credentials, the people who are working with you to build this company and also the people you plan to recruit. This will give a view of the kind of team you will be working with to achieve your goals and give your investors faith that with proper investment and help you can pull this through.
- Business Setup
This is the most crucial aspect as this will explain what facilities your business will have, from your premises to your management information system to IT and explaining how your product shall be delivered to the customer. If yours is a technology based business, this is the area where you give a detailed description about the kind of technology you would use to set you apart from your competitors. The key is to remember that your investors want to know about your technology but does not wish to know the technology. Let’s take an example of an android app. Here, you will explain how your technology can be used by prospective buyers and how it will benefit them, but not explain about how you are developing the technology.
In this fast pacing world, technology is the key to any successful startup. It enunciates the feeling that the business is built on modern thoughts and delivers the latest technologically savvy products and services. Every kind of technology is not meant for every business, so find what suits you best. If you are in e-commerce business you will need the basic GPS and delivering software for your deliverymen and a user friendly customer interface with tracking facilities for your users. On the other hand, if you are a local shop owner, a simple website can help you have a virtual presence and cut forward of the competition.
- Financial Plans And Projections
This part translates whatever you have said in the previous sections into numbers, stating whether the business will be worthwhile or you are just wasting your time and money. Write about the capital that you expect to invest and how you will invest it. Also mention the Return on Capital and budgets of different departments.
A business plan changes as a business grows. It will help you be focused so you know where you are and where you are supposed to be, so that you can correct your course as needed. While writing a business plan, keep it brief. Be honest and talk about the challenges you will face and give proper plans to overcome the same. Using visuals like graphs, charts and images will help bring your idea to life and use creative templates to stand out from the crowd. Remember, a business plan is not the place to show-off your knowledge but create the foundation of a new process with your knowledge while will appeal investors and shareholders to invest and have faith in your organization.