Business Plan is a written document which in its real essence helps evaluate things, it is essential because it provides you with real statistics, keep reminding you about your objects and goals, show you all the progress, show you where you are lacking, gives you an honest overview of your company. Writing one may not be mandatory but certainly is essential. You can’t cram all data or at least you can’t expect it from your employees. Your business not only shows you the reality but gives an idea about the purpose of your company to potential investors and partners. It is a concise document which communicates the ideology of your company to others. Therefore, one thing that we can conclude is that a Business Plan helps us in more than one way. Now, the question arises, how to write a good business plan?
The business plan should be divided into the following sections:
Make your first section the introduction of your company which states your company’s objectives and vision. The introduction should provide a basis for your entire business. What business are you getting into? What industry are you getting into? Why? Why should people buy anything that you have to offer? It should be an account of where you’re starting and where you see your business in 3, 5, 7 or even 10 years’ time.
- Market Analysis:
Prepare an executive summary of your products and services. What are your business prospects? What are you going to offer your customers? What currently sells in the industry? Are you going to offer something similar or something new? How are you going to differentiate your business from others? Are there any changes happening in the industry that might benefit or adversely affect your business? Do you need inputs for your products? Where would be the best and cost-effective inputs you can get from? So, is there a specific location where you must set up operations? If yes, then what needs to be done for it? Do you need to move? If no, then where do you start? In your house or any rented premises?
Who is your competition? What are their strengths and weaknesses? Where can you gain an advantage over them and How?
- Marketing Plan:
You have to figure out who your customers will be. Is there a specific age group you should focus on or do you have different products for age groups? How will you connect with these customers and draw them your business? On what platforms, physical and digital, will you market your business? What incentives will you offer customers to switch to your business and maintain them?
It lists short-term goals and a 1-year plan. It contains all the future planning and strategies and tactics to be used with the help of financial data.
It gives an overview of the functioning of your business from making business proposals to receiving an order to completing an order to delivering it. It also includes all the legal documents, registration certificates, Service tax registration, licenses required and rules and regulations to be followed.
- Financial Resources:
How are you going to pay all the initial costs till your business becomes profitable? Do you have resources of your own with the help of any partners or do you need funding? If funding is required, then where are you going to get it from and how are you going to get it? Whom do you have to persuade to provide the funds?
You need to assemble a team to help you and take away excessive workload. How will you create the team? Do you have partners? Do you need to hire employees? If yes, then from where and how? Also, how do you coordinate between employees and communication? What channels of communication do you need to create?
Adding these sections is the key to making a successful business plan. Your plan may also include the already implemented plans and strategies for future reference. Add a cover sheet and table of contents to the document to make it more reader-friendly.
A good business plan will be concise, honest and it will include all the information about the business as well as those supporting it. If you’re confused, Don’t Worry, we at LegalRaasta can help you write one which is as effective as it can be.