Basic Business Plan Writing
A business plan is a very important component of a business, because it functions as a road map of the business that we are going to start. A good business plan is when we fully understand the business that we will run.
Business plans have information about what business will be created, products or services, marketing strategies, pricing strategies, financial performance, and the name of the business to be run. If you need funding or capital from an investor, investors will certainly need a business.
There are countless formats in business plans and templates that you can use, in any case they must include the following:
1. Executive Summary
This executive summary is basically about what business will be run, what is for sale, and the long-term goals of the business to be run. This must be clear, and concise, so that investors are interested.
2. Company Description
This is the area where you provide information about the company, the business structure, who you are, what you do, and the statement of vision. Apart from that, you should also make a list of long-term goals where you will bring business and contribution towards helping your customers.
3. Services / Products
This section will be devoted to product detailing and service. You need to be thorough, most readers may not understand your business, so it’s important that you are clear on what you sell, or what your product is. In addition, you need to mention how this service or product will benefit the buyer.
4. Marketing Strategy
Marketing is the most important element in running any business. Do you market the product or service by going directly to customers, through the internet, social media, or TV or radio advertising. You will choose the best method that has a higher level of success in getting your name out there. Part of the marketing strategy will also include your pricing scheme, how much to sell products or services.
5. Management Structure
Who will run the company? What are their qualifications? What is their story? This section is devoted to introducing readers to key players who will run the company. The list is only a key player, and provides a mini biography in each one of them.
6. Financial Information
This section will outline the benefits that a business can produce. Provides pro-forma income statements on an annual basis, as well as a 5-year business projection of what it will produce. This section doesn’t need to be anything fancy, keep it simple, start with income, register fees, and calculate profits at the bottom. For projections, growth needs to be reasonable, and justified. Be prepared to explain the reasons behind income figures, and what is rational behind them. Make sure all your numbers are reasonable, and are realistic and credible.