If you’re in the business sector, you may have encountered the term business plan. It’s a document that lays out a business’s objectives and how it plans to meet them. The plan also discusses the time frame for the said objectives. The plan covers all the necessary bases for a business to run, from operations to marketing.
Business plans don’t just exist for the sake of existing. Entrepreneurs and other business people need them to get their ventures up and running. Think of it this way: the lack of a business plan is like a coach going to a game without a game plan. Without that plan, you can’t properly navigate your team to victory or imagine trying to get a home loan your old pay stubs. Not the most ideal situation, isn’t it? That’s why most experts suggest you don’t skip out on having one.
Now that we’ve established its purpose and importance, you may wonder what goes into making a business plan. This article will discuss the relevant parts of a business plan and provide a few writing tips.
The business world is an unpredictable one, so it’s best to stay alert and continuously improve your business. In this growing partner ecosystem, don’t rule out establishing co-selling relationships with competitors that offer complementary products or services. Here are some must-read resources on the business model: https://www.workspan.com/guide-to-drive-co-sell-partnerships
Begin with a Convincing Executive Summary
If you want long-term success for your business, you need to figure out your goals first. What does your venture want to achieve?
This is where the executive summary comes in. It’s the part where your business plan begins since it presents an outline of your business’s goals. The outline should cover the following:
- A brief description of your venture’s offerings
- A summary of your business’s objectives
- Your target market
- Your competitive advantage
- Also, Your financial outlook
- Your company history and leadership
These things may seem a lot, but it’s important not to skip out on any of them. An executive summary is like an elevator pitch, a short explainer that lets readers know what your venture is all about. When writing this part, keep this section one to two pages long since you don’t have to share all the details here. The following sections will cover the details.
Pro tip: write this part as you wrap up your business plan. Since it’s a brief outline, writing it at the end makes it easier to determine your goals since you’ve already laid out the in-depth explanations in the other parts.
Provide a Thorough Description of Your Business
Context matters, especially in business. A company overview allows you to give a comprehensive description of your venture’s history, aims, offerings, and audience. This part also describes your strengths, such as location and expertise.
Before writing this section, ensure that you’ve already identified your target audience. If you know who you’re aiming for, you’ll figure out your customers’ problems.
All of these and more should be included in your operations and logistics plan. In this section, you should explain how you operate your company. You can purchase the right equipment and supplies once you identify your logistics and operations. For example, if your business is in fashion and fabric printing, you can purchase a DTF printer, which is an excellent option due to its high print quality, fast printing speeds, and industrial-grade reliability. Taking this approach will make sure that your business plan is not unbalanced if your supplies meet quality standards. As your business grows, your plan should be attainable and adaptable.
Identifying customers’ needs isn’t enough to convince them to pay attention to you. What can your business do for them?
Make the most out of this section by showing how your venture will solve your target market’s concerns or problems. Share what makes your business stand out from competitors. Then discuss how you plan to address your customers’ needs.
Show Your Customers What You Have In Store for Them
This section is where you get to be more specific. Now that you have your readers’ attention, showcase your services or products through clear descriptions.
Avoid using buzzwords and overly technical terms when explaining your products or services. Not every reader can grasp industry-specific jargon. Keep your words simple for better comprehension.
Using comparison also helps in this section. You can explain what makes your service or product different from competitors. If your business belongs in an uncompetitive market, this is the time to explain why you’re in that specific industry or niche.
The length of this section depends on your business’s market or niche. If your venture is product focused, your descriptions should be detailed to avoid ambiguity.
Discuss and Analyze Your Intended Market
As mentioned earlier, every business should know its market. Excellent business plans provide in-depth analysis of their target audience; this is what separates them from good ones.
You can start by getting to know your niche and the opportunities that come with it. Research its size, stability, demographics, and demand. You can also look into trends and customer buying habits. Get an advantage over competitors by looking at their prices as well.
If you want your products or services to sell, figure out if there’s a market that needs them. You don’t want your investments and hard work to go to waste.
Lay Out Your Sales and Marketing Strategies
At this point, you should map out your marketing and sales tactics. What good is your service or product if no one knows it’s available?
Sales and marketing are how businesses get in touch with their audiences, whether through social media, Google Ads campaigns, email marketing, or SEO. This section should describe your target market and how you intend to reach them. Present the best version of your business without distorting facts. Consumers value authenticity, and they can tell if a business is peddling lies or overpromising.
If you’ve written a marketing plan or already have one on hand, this part should be easier to formulate. Your strategy should be feasible enough to be maintained in the long run.
Share Your Operations and Logistics Plan
As you plan your business, you may find yourself asking these questions:
- Who is responsible for which duty?
- What are your staffing needs?
- How will you hire people?
- What materials do you need to run your business?
- Who will be your suppliers or vendors? How will you build long-term professional partnerships with them?
- What should you do if the business does not perform as expected?
Another essential element of your logistics plan has to be the shipping company. If you are a business that needs to ship across countries and continents, you need to partner with a shipping company that is reliable, credible, and most importantly, offers breakbulk services for large and unwieldly goods.
Your operation and logistics plan should cover all these and more. This section should let readers know how your business operates. Your plan should be attainable and adaptable as your business grows like everything else.
Analyze Your Competition
Businesses are naturally competitive. Whether you’re a big enterprise or a small venture, you should keep an eye out for your competitors.
This section should show that you’ve gauged your competition’s strengths and weaknesses. You should also understand the risks that come with competing against them. A well-thought-out competitor analysis allows you to adapt based on their performance.
Don’t stop at current competitors; anticipate future ones as well. Never assume that you’re always ahead of them, and get complacent. The business world is an unpredictable one, so it’s best to stay alert and continuously improve your business.
Talk about Your Financial Projections
Numbers are a big deal in business. You don’t need to be an accountant or mathematician, but you should understand them.
Whether you’re seeking outside funding or not, disclose your venture’s financial projections. This lets readers know if your business has a chance to be financially viable.
This section usually shows reports such as cash flow statements, balance sheets, income statements, and operating budgets. Experts suggest including them here for transparency. Consult an accountant in developing this part.
Your business plan shouldn’t just attract outside parties; it should also convince you. If your ideas are sound and sensible to you, they may also attract partners and investors. All your efforts will be worth it if you can convince them.