What is a business plan?
A business plan is a document that contains goals and strategy of achieving for a business.
It directs the activities of the business towards achieving maximum goals.
It is also a tool for decision-making and for attracting potential investors.
Importance of a business plan
Guiding tool
It acting as drive for daily activities that spearhead achieving the intended business goals limiting errors that arises from activities that are out of interest to the business.
Elucidates vision of the business
This is through defining the business goals and aims as it directs to strategic moves and methods of achieving specific target goals of the business.
Pinpoints challenges and gradual solution
Through a business plan, you are able to anticipate various challenges that can arise and assess various possible immediate solutions to them.
Attracts more potential investors
As a business plan entails goals of the business, potential investors are able to evaluate and in business as it upsurges their trust in the business.
CONTENTS OF BUSINESS PLAN
Product and services
It is a description of what the business offers entailing its features, quality, quantity and its benefits and quality assurance of the services.
Organizational and management
This is the detail about the business owner, business structure, ownership, and leadership.
Executive summary
This is an overview about the business inclusive of vision, mission, polices and goals of the business.
Business description
This is the descriptive information about the business its goals and aims within the setting and some of the problems its aiming to solve.
Market analysis
This is explaining the intended target market, assessment of the industry, and level of competition how to meet the market demand.
Sales strategy and marketing
This is how the business is managing to attract and retain its customers, and achieve customer drive to their products. It entails also the strategy and means in which it is using to meet the target market example through sales e commerce.
Operational plan
This is the daily routine programs that dedicates day to day activities.
Financial projection
This is financial forecast that an organization will use including its expenditures, revenue dictated by sales activities inclusive of profits and cash flow within the business
HOW TO WRITE ONE
In generating, a business plan it must outlines the business activity.
This is fared through highlighting the following topics.
a) Executive summary- include mission statement, business name and concept, target market.
b) Business description- how is it unique, goals and vision
c) Market analysis- market analysis, target market, market need
d) Organization and management- roles and responsibilities, organization charts, expertise and qualifications.
e) Services and products- features and benefits of the product, pricing model, future plans for product expansion.
d) Marketing and sales strategy- marketing methods, sales channels, promotion and discount.
f) Operational plan-location of the business, key suppliers and partners, tools and technologies used.
g) Financial plans and projection- future expenditure, funding requirement, financial statements, balance sheet, revenue projection
A business plan writing should be done in a meticulous and comprehensive format.
It is data and evidence based to support claims and focus on growth, potential investors, profit and any risk that arises within the business.
It is also necessary to focus on realistic financial projection in business plan writing and in a structural format and professionally.