Maybe you think you don’t need to know how to write business plan because you have seen businesses without even an informal business plan succeed.
The question: Does having a business plan in place guarantee the success of a business? No. Having a business plan alone does not give that assurance.
Am sure after reading this post you will have reason to write a business plan
But having a well written, simple business plan in place gives you higher chances of growth and business Success than those who don’t.
You should have a business plan
Having no business plan in place is one of the factors that contribute to the killing of a business.
The first step towards avoiding failure in business is writing a business plan. Am not saying having a business plan is a guarantee for success in business, but I have never seen a successful business without a business plan to guide the business.
Don’t worry. You must not have a business or accounting degree to be able to write a working business plan. This guide will help you draft one.
I will take you by Hand in this guide on how to write a business plan.
Any business needs a business plan whether its for having a blueprint of where the business is going or for the purpose of attracting investors.
Before we start don’t go by the idea that a business plan must that bulky, long document as if it is a university text book. That is not true.
Only a little portion of businesses need that kind of a bulky document for attracting investor and securing a bank loan.
Ours here is going to be that lean document with just enough point lists and vital business projections.
Something worthy of note is that a business plan and a business proposal are two different things.
A business proposal is a term of written offer to a potential client. While a business plan as I stated earlier is a blueprint of your business.
Relax as I will show you in this article the simple steps to writing a working business plan.
To better understand what we will be doing take a look at the table of content.
TABLE OF CONTENT
- What is a Business plan?
- Importance of a business Plan
- How to write a business plan
- Executive Summary
- Organisation/company management
- Financial projection
What is a Business Plan?
A business plan is a clearly written plan for how your business is going to operate and how you are going to make it grow and be successful.
A business plan is vital for the growth and success of your business. It is that which gives you the inkling of where the business is going.
So what is the importance of a business plan, besides many small business are operating without it? I’ll show you why in a second…….
Importance of a Business plan
A business plan is like a signboard that directs you to a place.
A business plan is important because it gives you the ability to track your business progress and growth.
It includes information that will improve the business and present chances of being successful in a business.
Do not start a business without drafting a business plan or if you are already running a urge to, after reading this, draft one.
Business plan must not be very long. It can be just a one paged document that will serve as a roadmap to your business success.
A business plan is your guide in the business. It directs your spending and helps you with financial projection.
So many things add to business success but one of the biggest is having a business plan in place.
Let us see how we can write a business plan.
How to write a Business plan
A business plan has a list of essential items which we will discuss here and learn how to write each plan.
This is the summary of your business and plans. It mostly comes first in a business plan but some people choose to have it come last. It can be one or two pages.
This section introduces your business and explains in detail what you do.
It is possible for investors to ask for the executive summary of your business and see how it is before asking for the complete business plan.
Because it is such a crucial part of the business plan it should be clear and simple as possible.
You should cover the essential idea of your business in the executive summary but be careful not to go into details.
This section deals accurately with the question of what you are selling and how you intend solving a problem (meeting demands) in your market. Who are your target and competitors?
This section should also be used to show what distinguishes you from others in your market or niche.
This section answers the question of how you can turn your opportunity into a business.
The section will cover your sales plan, metrics of success and operations.
This section will cover in its entirety how your business works.
In addition to great ideas, investor look for something more – a great team of individuals.
Use this section of the business plan to describe your team, the kind of people you have and who you need to hire.
Include, briefly, bios that tell of the experience of each member of your team.
It also should cover your location, legal structures and history (if the business is already operating)
5. Financial Planning
This too is critical part of a business plan. Your business cannot run without finances.
The business plan itself isn’t gonna be complete without the financial planning section.
This is the section of financial projection or forecast.
Most entrepreneurs find this section intimidating. It is not really as intimidating as it seems.
You should include your monthly sales and revenue projection for the first 12 months and from there on start having it for annual basis.
If there is a need for images or additional information, then it should be included in the appendix section of your business plan.
Although it is not a required chapter it should be included if there is a need for additional information on your business.
Images, charts and information that are too long if you feel out of place to include anywhere should be included in this part of a business plan.
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I will be glad to see what you think of in the comment section. I will also be there to answer your questions.