A business plan is a written description of the future of your business and more importantly, how you will achieve it. This is a document that describes what you will do to make your company profitable and how you will achieve it. It defines your business model and your strategy to make this business model work and more importantly profitable.
Usually when a business idea comes up, you know what resources and capabilities you had at the start of your business and where you wanted to go within a certain timeframe, usually within 3 or 5 years. But how to achieve that goal? Where to start? How to generate investor interest? Actually, how to start your business? Everything seems so easy when you have ideas and concepts that make a lot of money. This is how you will achieve these dreams and earn enough money to keep the business going for years to come.
Writing a business plan is building a map that will guide you to where you can start making money with your initial business idea. At a very basic level, your business plan is a mix of strategy and plan. It involves finance, marketing, staff and product. Think of it as the basis for your new business.
WHAT reason might I need it?
• To find investors.
• To apply for a loan.
• To determine the viability of your business idea.
• To make improvements to your current business.
• To expand your current business.
All of these types have different emphases and different structures.
WHAT is a business plan?
It is a tool or document that describes the business opportunity or idea, work team, operational and marketing execution strategy, business risks, and the economic viability of your business. A well-written document guides you to turn your idea into a viable business.
It can also be defined in other contexts that a business plan becomes a fundamental tool in the analysis of new business opportunities, diversification plans, internationalization projects, acquisitions of companies or external business units, or even business launches. new products or services in current business.
To summarize, both for startup development or launch and for new business investment analysis, a business plan becomes an indispensable tool. So even if you have an established business, you will still need a business plan as you develop and improve that business.
A business plan is never completed and should be reviewed from time to time at least annually but definitely when major changes to an existing company are anticipated. This implies that each plan must adapt effectively and efficiently to changes, helping the project to proceed.
What’s the point of a business plan?
Many entrepreneurs think that they only need a business plan when they are looking for an investment or when a bank asks for one. But the act of business planning, when properly completed, allows entrepreneurs to carry out extensive market studies that will provide the necessary information to design the best business models that will be profitable and efficient.
In addition, the business plan will develop strategic steps for all functional areas that will enable them to achieve the new business goals.
Once written, the business plan will serve as an internal tool for assessing company management and deviations from the planned scenario. Propose, if necessary, adaptation to the agreed business model to obtain up-to-date information for the daily management of the company. This will include preparation for the changes and the processes needed to get the business back on track.
So let’s dive deeper into the concepts behind business planning.
WHY of Business Plan
• Why do you want your business plan?
• Why are you writing the plan now?
WHAT of a Business Plan
• What is the purpose of developing a specific plan?
• In what period do you consider it possible to carry out your project?
• What is your business model?
• What is Your Value Proposition?
• What products or services will you offer?
• What positioning do you plan to develop to compete?
• What is your measure of success?
• What markets do you plan to penetrate?
• What percentage of the market do you expect to get?
• What margin do you think is possible?
• What income do you think you will receive?
• How much does the expansion cost?
• How much does it cost to get a new customer?
• What do you want to do with your business?
• What strategies do you want to pursue – finance, marketing and planning
WHERE ARE THE BUSINESS ACTIVITIES
• Where will your product be sold? Shop, office, website, social media, roadside, party planning,
• Where are you based? Local, centralized, almost etc.
• Where are your products manufactured?
• Where are your distribution channels?
• Where will they be sold?
• Where is your market?
• Where do your staff need to be located?
WHEN your business planning activities
• When do you need to start your new activity?
• When will they end?
• When do your investors need to invest?
• When will your investors get their money back?
• When will you have enough staff to make your new changes?
• When will your products and services be available?
• When does your product need to be updated and/or upgraded?
• When is the best time to attract new customers?
Who do you present your plan to?
• Banks for loan purposes and they will usually take over a property.
• Investors to join your company as a shareholder.
• Angle Investor to join as a shareholder but also get involved in running your company.
• The management team so they know what is expected of them.
• Suppliers who will offer credit.
• Hire director level so they are encouraged to join your company.
• Believe it or not employers should also refer back regularly.
As you can see there are many Ws involved with a business plan – the biggest W is why you should write a business plan and the answer is – because it is a powerful business tool.
Writing a winning business plan is a complex procedure and is best done with an experienced business consultant. BizGuru.us can assist you with consulting, strategy, business model canvas production, and pitch decks.