What Is the Best Way to Write a Business Plan?
A road trip would never begin without a pre-planned destination on a map. So, why would you start a new firm without a well-thought-out business plan?
Whether running a small retail store, a craft market stall, or an independent social media firm, every business owner requires a plan.
It’s easy to see why by looking at small business survival statistics. According to the United States Bureau of Labor Statistics, only 30% of enterprises make it to their fifth year.
- Because there was no market need for their product or service, 42% of those who tried failed.
- A total of 29% of the projects were unable to continue due to a lack of funding.
- Because of pricing issues, 18% of the companies failed.
All of these concerns can be mitigated with a solid company plan. This post will provide five suggestions to assist you in constructing one.
Also, Read: Guide in Improving and Growing Your Business
Make Your Company Plan With a Goal in Mind
There are five main sections in most business plans:
- A brief summary
- A business concept
- Market research
- Management and employees make a strategy.
- A financial strategy
A competitor study, SWOT analysis of current market circumstances (including strengths, weaknesses, opportunities, and threats), an operations plan, an analysis of the business’s target market, and how you choose your branding are included in more detailed plans.
Regardless of the framework you use, each component should address one key question: “Why will our company do (x)?”
So, how do you communicate your mission statement in your business plan? In an ideal world, you’ll be able to share your principles as well as what you hope to offer to society and your business objectives. If your company has employees, you should also specify the work environment you want them to have.
Why a Smart Business Plan Is Key to Your Company’s Success
A solid business plan will help your company’s long-term success by providing a roadmap to follow when you’ve lost sight of your objectives or need to face an unanticipated issue.
To create a plan that works for you, make sure you have a purpose, focus on your business model, get expert assistance if necessary, look for inspiration from existing plans, and back up your business plan with proof.
Provide Evidence To Back Up Your Claims
As an investor, what would make you say, “Yes, I’ll invest”? Perhaps you’d respond with “a documented road to profitability” or “solid financial projections,” both of which are sorts of evidence.
Though you may want to write a business plan that promises big profits, your investors will be more willing to invest if you show them that you can make money with concrete facts.
You can incorporate a variety of sorts of evidence in your plan, including:
- To back up your financial estimates, you’ll need budgets, predicted sales numbers, and profit and loss accounts.
- To back up your estimates for possible clients, create a buyer persona.
- Data about website traffic to support your digital marketing strategies
- Statements that support why you made certain business decisions (for example, “we used a business name generator to create an easily recognizable name”)
Related Article: How To Overcome Financial Challenges Right Now?
Take Ideas From Previous Business Models.
Reading other people’s business plans is an excellent method to improve your own because you can see what worked and what didn’t for them, as well as how they attracted investors. Additionally, looking at other people’s plans can help you spot minor but essential details that you may have overlooked (like a profile of your target audience or a staff retention plan).
Reading high-quality plans can be done in a variety of ways, including:
- The website of the Small Business Administration
- Ask a successful business-owning friend or family member to share their business strategy with you.
- Investing in publicly traded firms via reading investor packages
Seek Expert Assistance.
Because they don’t know what to write, many new small business owners leave substantial sections of their first business plan unfilled (such as the financial or marketing strategy).
In the short term, leaving a section blank may save you time, but it could cost you your business in the long run. If you don’t plan well for a particular portion of your business, it will be more challenging to succeed and achieve profitability in that area.
That is why you require professional assistance. Writing a business plan with the guidance of an expert can help you establish a profitable business model.
Concentrate on Your Company Plan.
Would your business model provide enough tangible information for one of your employees to run your new business without you?
While you don’t have to expose all of your trade secrets in your business plan, it should define its business strategy so that anyone can follow it. This implies that you should include:
- How will you make money with your company?
- How will your company become profitable?
- How will you expand your side hustle into a full-fledged business?
- Every expense that your company will incur (and how you will pay for them)
- How you recruit, train, retain, and care for your employees
- Who will finish each task?
While detailing these elements may appear excessive, it will save you time and money in the long run because a more straightforward business strategy is easier to follow.