A wise man once said, failure to plan is a plan for failure. This is why as an entrepreneur, you must know how to write a business plan
In my article of why most businesses fail, I mentioned that poor planning is a major reason. If you are an entrepreneur or intending entrepreneur, I suggest you click this link to read it. Business failure due to poor planning is the reason why it is very compulsory to know how to write a business plan.
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A business plan helps you achieve your entrepreneurship goals and puts together everything you need to take into consideration in your business. If you run a business that invites investors, you will definitely need a business plan to show the potentials and operating system of your business. No one will want to put money into something that has no plan or goal.
This article will teach you in detail how to write your business plan. This plan can be written on a piece of paper.
STEP-BY-STEP FORMAT OF A BUSINESS PLAN
EXECUTIVE SUMMARY
In the first part of your business plan, there must be a formal summary or introduction of your business. What your business is all about and what product or services you provide, If you are a laundry company you can briefly talk about what your company does by saying
Shine Laundry is your number one laundry service which is operational 24/7 and provides dry cleaning, rug washing and car washing services. We also provide house cleaning services on demand.
Furthermore, you can talk about the future plans of the business.
PROBLEMS AND SOLUTION SKETCH
With knowledge of your business idea, identify the problems to which your idea is bringing solutions to. Your business cannot be solving a problem nobody has. The idea of a “problem” doesn’t necessarily have to be a world problem but can be a problem in your environment or community.
Talk about your product or service and highlight how usage of your product or service adds value to a customer in one way or another.
MARKET ANALYSIS
A business must have a target market. Know your customers, in relation to age-grade, gender, social class, etc. This will help you know what marketing strategies to employ in your business. Identifying your target audience enables you to narrow down your resources towards the target, rather than beating around the bush.
COMPETITOR ANALYSIS
It is important to analyze your competitors. Get familiar with other businesses in your niche and find out that strengths and weaknesses. Also, look for the best possible ways to outsmart them and do better than they do. Most business ideas already have existing competitors in play.
Furthermore, you can modify your business idea and make it unique by getting to know businesses strategies.
MODE OF OPERATION
This explains how the business is to run on a normal basis. The responsibilities of workers, administration, management and company rules. It is important to set out the company operational system, so as to lay down standards for your business.
WORKFORCE
After stating your operational system, you need to ascertain the team you need to carry your business forward. Who are these people going to be? What roles are they to play? How many of them do I need? What positions are they to occupy? Your workforce will always determine your business productivity.
FINANCIAL PLAN
Finance is the backbone of your business. Starting from raising your capital, to all your expenses and profits (budget), everything must be properly planned out and put into writing. It is necessary to have adequate funding to start the business and keep it running even before profits start coming in, say for about 2 years running. Know more about financial planning by clicking here
Finally, I hope you have learned something from this topic on How to write a business plan.
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