Your business plan is your compass. Like one is lost without a compass in the jungle, an entrepreneur is lost without a business plan. It is extremely necessary to have a business plan that will help you navigate through tough times. Doing a business is no less than an adventure. It has its own adrenaline moments where you have to make that jump. It needs you take a full leap of faith.
Now coming to the writing part, writing a business plan isn’t difficult. You just need to keep a few things clear in your mind. Even a single page pitching idea can sound exciting and is enough to get started. A good business plan should cover all the aspects of your business. A good business plan is a guide; it is your Bible, your Quran, as business is your religion.
There are different types of businesses. Here a basic approach is provided that be used to write any business plan.
● Getting started
Before getting started a few things should be clear on your mind. These include the purpose of the business. For instance, it can be a non-profit business. Such a business model requires a different business plan. Hence the purposes of doing business should be clear. The big picture shouldn’t be lost.
● The writing part
Once you are ready with the concept and the idea then comes the writing part, which is the most crucial part of the whole business. As the foundation of a building is the most important of it, similar is the significance of a business model since it provides a structure to the business plan.
Now business plans can be of many different types. A nonprofit business will have a different model. In it generation of profits wouldn’t be an issue.
A standard business plan includes the following sections in this particular order, though the order may be changed.
This section of your business plan is what decides the fate of your pitch at the hands of prospective investors. It’s just a page or two long and briefly summarizes the key points of the business with the inclusion of the problem of the customers that it solves, its solution, target audience, founding team and the finances. Keep it short and draft it in such a way that it entices the reader to know more about your idea.
Describe here the specific problem that you are solving through your business model. Write it through a customer’s perspective and needs, because ultimately it is what matters the most. It can include tables and charts giving an insight into the product details like price and USP.
Market analysis summary
The next thing that comes in line is the market you are targeting. Elaborate the type of customer audience that your product or service will attract, where they are from and how to reach them. You also need to include other competitors out there in the market and if there is enough space for you too.
This actually includes how the business will be run. Fill in all the methodologies that will be implemented to make the business work, the technology and equipment used other facilities and location of the setup.
Company and management summary
This includes the brief resumes of your working and founding team. It tells who you are.
Lastly include the profit, loss and cash flow tables with the projected assumptions of the plan.
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