What vision do you have for your business? Do you intend to be the world’s most creative organization, or do you want to make e-commerce better for everyone? Whatever your dreams are, creating a business plan helps you clarify your goals and gather everything you need to get started.
If you’re wondering how to start, here is a step-by-step guide to creating a business plan that sets you up for success.
How to Write a Business Plan
Create an Executive Summary
Start by writing a brief overview of your entire plan. This section should include your mission statement, a description of your products and services, and your growth plans. It should be as brief and simple as possible to help your readers understand what your business is all about.
Make sure to include some basic information about your company, such as your business’s registered name, your address, and the names of key people in your business.
You should also state whether your business is a sole proprietorship, partnership, or corporation. If it’s a partnership, state the percentage of ownership of each partner, and how much they’re involved in the company.
Conduct a Market Analysis
Your investors or lenders will want to know what makes your business stand out from the competition, and a market analysis will help you answer their questions. In this section, you’re going to answer questions such as:
- What does the current market look like?
- What services and products are you offering?
- Who are your competitors?
- What makes your services or products different?
- Who is your target market?
Describe Your Products and Services
Go into the full details of your products or services. You should include information such as:
- How your products or services work
- The pricing model for your products or services
- Your order fulfillment strategy
- Trademarks and patents, if you have any
Design a Marketing and Sales Strategy
Here, you can address how you intend to promote your products and services. Include details such as:
- Your target market
- Your competitors – what they do well and how you can improve your products and services to do better than them
- Your sales plan – how you plan to persuade customers to buy from you and how you plan to develop customer loyalty
- Your sales channels
Determine Your Budget and Financial Projection
If you’re a startup, you probably don’t have much information about the financials of your business yet. But if you’re an existing business, you might want to include data such as:
- Revenue projections
- Profit and loss statement
- Your assets and debts
- A cash flow statement that shows how money comes and goes out of your business
Make an Action Plan
At this point, you’ve already given your readers a clear picture of what your business is all about. Now you need to describe the steps that you’re going to take to bring your business plan to life. This will help solidify the trust they have in you and your organization.
Build an Actionable Business Plan
Business plans aren’t just for startups that need to secure funding. They’re also important for existing businesses since they help define where your business is and where you want it to be in the coming years.
By creating a business plan, you’re creating a roadmap to help you navigate the challenging journey of entrepreneurship. With the right mindset and tools, you can create an effective business plan that will motivate you to achieve your goals.
