Entrepreneurs often ask what a business plan is, and why they should create one. They ask us: “What all is needed for a business plan?” and “How do I create my business plan?”
It may be both exhilarating and stressful to launch a new company. Creating a thorough business plan is one of the most crucial tasks to do when beginning a new business. The goals, objectives, strategies, and financial projections of a business are described in a written document known as a business plan
A good plan can serve as a roadmap, ensuring that you don’t lose your way. Business plans are the foundation upon which you build your company and without them you end up being lost in the woods.
Don’t worry, we have made it easier for you! Here is the complete process along with a checklist for your business plan.
1.Executive Summary: the executive summary condenses the key points of the rest of your business plan into a short introductory section. The necessary parts of an executive summary include Mission statement, Company’s information like the name, its headquarters, founders, team, etc. Then go on to explain your products and services. Also add the financial information like sources of funding, investors information. Also add the future projections for the company.
Bonus: Keep the projections data driven and concrete to create an impact.
2. Overview of Business and Industry – This section generally includes the description of your market sector and industry along with its financial statistics. Include a basic competitor analysis and an outline as to how you see your business outperforming potential rivals and how you will improve on existing services or products. Bonus: Include your SWOT analysis.
3. Market Analysis – A market analysis is a more detailed look at your company’s business model and how you fit into the competitive environment in your industry and market. A market analysis should contain exact details of your target market like the location, demographics, customer base etc. Your data on the size and activity in your market, how much money customers spend, the prospects for growth, underserved portions of the market. Include the company barriers and limitations that might insulate your business from competition. Lastly, competitor analysis, Your top competitors’ market share, strengths, weaknesses, and the obstacles they present to you. Estimate your projected sales vs. your competitors. Oftentimes this comes in the form of a table with sales figures listed for you and your competitors. 4. Sales and Marketing Plan – The sales and marketing section of the business plan outlines your strategy to grow your market share and customer base. It includes information on What you sell, your intellectual property, how your products meet your customers’ needs, your competitive advantage and the specific innovation or unique service that your company will bring to the market (also known as a value proposition). What is your marketing strategy, advertising plans, what channels and platforms you will use for promotions. What will be your sales strategy? Also include a description of your sales force and marketing team members, How your supply chain is organized and will operate.
5. Operating Plan – The operating plan should include information on production- How you make the things you sell, how long it takes, details of the development and manufacturing process. Facilities and maintenance, Management and employees breakdown in details, costs of equipment, supply details like materials, suppliers, inventory management etc. Lastly, research and development, Intellectual property, the timing of new products or services, and prospects for innovation.
6. Financial Plan – A financial plan should include the income statements, Your expected revenues, expenses, and income over several quarters or years. Cash flow projections, Balance sheet, debt obligation if any and break even analysis explaining the level of sales you need to generate to cover all of your fixed and variable costs.
A business plan will map out your goals and objectives and help you plan a course of action. Legal Desire Consulting can help you create a business plan with the right vision for your company.
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