Writing a business plan is one of the most crucial things to do if you are serious about starting your business or expanding your existing one or diversifying it further. It serves as a roadmap to your success. A well-written business plan also allows you to evaluate whether the idea is sustainable.
In the absence of a business plan, you may find it challenging to work out the financial needs of your business and establish milestones to measure your growth. You may also find it difficult to get meetings with investors as most expect a plan to assess the feasibility.
Since every business has unique needs, there are no hard and fast rules about the right time for writing a business plan. You need a business plan even if you have already started operating your business.
So here is a stepwise guide to simplify the process of creating the blueprint of a winning plan:
Start by answering questions
It may be tempting to put pen to paper right off the bat. But you may find it challenging to write a comprehensive plan without understanding some of the essential components of your business.
Start by answering fundamental questions about your business, such as:
- What is the product or service you want to launch?
- Who is the target audience?
- When do you want to launch the business/ When did you launch the business?
- How much capital are you willing to invest/have invested in your project?
- Who are your competitors?
If you want to make a convincing case for your business, you need to start with the basics. Expanding on these critical questions will help you create a framework and set the overall tone of your business plan.
Undertake a market analysis
Knowing your market inside out makes you confident. It also makes it easier for you to present a convincing use case for your product or service to the investors.
Make sure to address the following point through market research:
- What is the persona of your ideal customer?
- Where is the target market located?
- How big is the target market?
- What is the key demographic you are targeting?
- How much market share do you expect to gain?
- What are the key barriers to enter the market?
While this step can take an incredibly long time to complete, it is a crucial piece of information for your business plan. The more information you gather, the more detailed your business plan will be. It will also show your investors that you know the market thoroughly and encourage them to support your idea.
Write a Mission Statement
Once you have collected the necessary information, it is time to start drafting the actual plan. Start with a mission statement or executive summary of your plan. This provides a bird’s eye view of your business and the goals you wish to achieve.
Take your time to frame the mission statement — it is one of the first things people will notice in your business plan. Make it attention-worthy by including the critical details in an interesting manner. Simply put, your mission statement should tempt the reader to go through the other sections to understand your offering better.
Draft the body of the plan
Now that you have introduced the idea through the executive summary focus on building the plan’s meatier parts. Start by introducing the type of legal structure for the business — will you operate as a sole proprietorship, partnership, or incorporate a company? In the next section, include a detailed description of the product or service you are offering. This sections should cover questions such as:
- How does it benefit the users?
- What are the current trends in your industry?
- What makes your product unique?
- What do you want to accomplish by launching this product or service?
- What is your marketing and selling strategy?
Include a detailed section about the financial projections — it can make or break your business, especially if you plan to raise funds externally. Talk about your present balance sheet and include monthly and quarterly projections. Show the cash flows and expenditures. Indicate the amount of funding you may need right now and the funding raised so far.
This section of your business plan should be as accurate as possible since investors comb through the financials before committing.
Add a Call to Action and supporting documents
Summarize the business plan by clearly identifying what you want the reader to do. For example, if you are using the business plan for fundraising, mention the amount and request for a meeting for a detailed discussion.
It is also a good idea to include documents at the end that support the rest of the plan. For instance, if your business will be a sole proprietorship, you can include your financial statements and credit reports to show your financial position. You can add the reports of any market research or demographic study conducted for the business. If you have already registered trademarks or patents for the business, you can add the relevant certificates.
You can also include a one-page resume to introduce yourself — this adds a personal touch and puts a face to the brain behind the business.
Not feeling confident about writing a business plan on your own?
If you want to maximize your chances of succeeding in your business, you cannot do without a business plan. A well-drafted business plan helps you put things in perspective and look at the big picture issues you need to focus on as an entrepreneur. But if you are overwhelmed by the fear of writing the plan on your own, it is time to seek help. That’s precisely what Centurion Consulting LLC can assist you with.
We offer customized business plan services and also prepare feasibility reports. Our highly qualified team of financial, commercial, and business analysts who have diversified, global experience across varied industries can help you create a detailed business plan that convinces your investors and bankers. Want to know more? Schedule a 45 min free online or offline consultation session with us to explore how we can help your business soar high.
