Do you want to know how to write the perfect business plan? According to a recent study, 90% of businesses fail in the first year, because they don’t have a solid business plan. And a perfect business plan is the foundation of any business. Your business will not be able to sustain itself without it. And here we explain all the steps to write the perfect business plan.
Write the perfect business plan
A well-written business plan outlines your company’s structure, future goals, product development, and operations. Planning is the first step in starting a business from scratch. And if you ever mistakenly ignore this step, you will be among that 90% of people who fail in the initial phase of their business.
A Perfect Business plan consists of the following steps:
- 1. Executive Summary
- 2- Description of the business
- 3- Market analysis
- 4- Ownership and Management
- 5- Operational Plan
- 6- Describe Products and Services
- 7- Marketing and Sales Plan
- 8- Business Financial Plan
- 9- Financing Request
- 10- Appendix
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1. Executive Summary
Executive summary is the first step in writing a business plan. Here you provide a brief description of your company, the problems you are going to solve, the product line, marketing, management, and ownership.
In the executive summary section, you summarize all the other sections of your business plan. It is basically an overview of your business.
How to write an executive summary:
First, introduce your company in a few lines and write the ownership structure. And then explain the problem or need and give your solution. Demonstrate how the recommended solution will be valuable. And write about the role of your company and how your product or service differs from other competitors. And then at the end write all the steps on bulleted lines which you will describe next.
You can include these points in the Executive Summary of your Business Plan:
- Business Name
- Problem or Need
- your solution
- Marketing plan
2- Description of the business
In the Business Description section, you provide important information about your business. And this information will be your registered business name, location of your business, business roles, your team, products and history of your business.
You will also need to explain here your goals and objectives that are realistic and achievable in a specific period of time. And also some reasons for the existence of your business.
Include these points in your Business Plan:
- registered name
- Executive leadership roles
- Reason for existence of the business
- Number of employees
3- Market analysis
Under Market Analysis, you’ll need to outline your potential customer and the size of your target market. And provide demographic information such as location, interests, age, gender, and income. make integral market research and explain how you can take advantage of the opportunities. And how you are different and better than your competitors.
And also write competitive analysis here to describe the strengths and weaknesses of your competitors. How are they serving their customers? And can you do this in a better way?
4- Ownership and Management
How to write the perfect business plan? In this step, you will need to describe your business ownership, roles, and management team. And it should also explain the experience of each team member and how they can turn your business goals into reality.
You can also write about the skilled workers you’ll need to hire to work more efficiently and their cost of hiring.
Key points for business management and ownership:
- Business Legal Structure (Sole Ownership, Partnership, LLC, Corporations)
- Founder and Co-Founder of your Business
- Ownership percentage of each partner
- The employees and their experience.
5- Operational Plan
In the operating plan, you will need to describe how your business works and the responsibilities of your management team. And you’ll also need to provide details about the manufacturing process, inventory, and equipment you purchase and need for your business. Because this information is very important for investors to know the basic model of your business. Therefore, explain each step in detail, from manufacturing or sourcing to delivery of the product or service.
Describe these points in the operational section of your business plan:
- Source or supplier of the product
- physical location
- Tools and Software
- Shipping or Delivery
6- Describe Products and Services
When writing a perfect business plan, the sixth step is to describe your company’s products and services. Explain what problems your company is solving and how this solution works. And it is one of the most important steps in writing a good business plan. Because it will help business partners and investors better understand your business model.
And you can include these points in the products and services section:
- Explain why your product is useful
- Describe the physical characteristics of the products (diagrams, photographs and graphics)
- Give reasons why your products are better than those of your competitors.
- How these products add value to customers’ lives
- What they will lose if they ignore your product
7- Marketing and Sales Plan
Write down your business goals and objectives and allocate your marketing budget accordingly. and also do competitive analysis to find out what your competitors are actually doing and what marketing strategies they are following. Identify your buyer demographics and related target audience. And you will also have to write about all the marketing sources and platforms that you will use to promote your products.
8- Business Financial Plan
Business financial planning is a very important part of a business plan. Because if you are going to fund your business, you will need to provide numbers that show your business growth, expected profit, and total investment required. And to gain the confidence of potential investors in your business, you’ll need to write your financial plan more efficiently.
- Business expenses
- Revenue projection
- Cash flow statement
- Analysis break-even point
9- Financing Request
In the Funding Request section of your business plan, you will need to write the total amount of funds you need to run your business. Describe all the things you need to invest in, whether it’s product development, marketing, personnel management, or construction expenses.
And also specify the types of funds. Are you looking for a short-term business loan or as an investment in exchange for a percentage of ownership?
This is the last step in writing the perfect business plan for your company. Here you will provide any additional information, graphics, and photos that you think can help readers better understand your business. It basically serves to motivate and convince the reader that your business idea is feasible.
You can include these things in the Appendix of your Business Plan:
- Product photos and packing samples
- Logos and brand marketing materials
- Licenses and permits
- Legal documents such as shareholder certificates and incorporation documents.
- Property Leases and Rental Agreements
- Financial projection spreadsheets
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