Business plans can be very useful for entrepreneurs starting a business and for established businesses looking to expand or create a new venture. Business plans are a roadmap to success for a business. Many companies fail each year due to poor planning. This problem can be avoided with a good business plan.
Purpose: A business plan helps to determine the direction of the business, where it should go in the future, and where the resources will be used to reach that goal. This document provides investors and lenders with proof of entrepreneurs’ credibility. This makes them more attractive candidates for funding.
Length: The Business plan should be concise and easy to write. A business plan should be at most 40 pages. It would help if you used summary tables and business charts to make it easy to understand and read the numbers. Two fonts are not allowed. Font sizes should not exceed 11 or 12 points. To separate charts and pages, you should use page breaks.
Objectives: A business plan aims to project revenue and detail how the business will get it.
FORMAT OF A BUSINESS PLAN
Executive Summary
This is the first part of a business plan. This is the first section of a business plan. It provides a summary of the business. This section will describe the business’s nature. It should be last. Entrepreneurs will be able to see what the executive summary should look like after they have completed the business plan. This is the executive summary.
The mission statement is part of the business plan that explains how customers will benefit from the company’s products and services. It is important to outline the products and services that the company will offer in your business plan.
Objective: The objective is the goal that the business should achieve. It sets goals for the company.
B) Company Description
This section will provide a detailed description of the business. This section is for the company description.
Ownership: Which type of ownership will the company have?
The location: This is the address of where the business will be situated. It should include the address of any office, retail shop, or other facility associated with the company. If the business has a website, it should be listed.
Product & Services – What product or service will the business offer?
Funding: Here is how the small business will be funded. The budget can be broken down into two parts: start-up costs and start-up assets. Legal bills, renovations, and leased equipment are all examples of start-up expenses. These are the items that business owners will use for their business operations. Cash, equipment, and inventory are examples.
C) Management and Operation Plan
This section of your business plan explains how the business will operate daily. The following are included in the business plan:
Management: This is a list of personnel who will hold a managerial position and the description of their roles in the business.
Operation: This describes the steps a business requires to deliver its products or services to the customer.
D) Marketing Plan
This plan details how the small business will sell products and services to customers. The following items will be included in a marketing plan:
Industries: This is a list of all the players on the market, including the competition, their type of product or service, their strengths, and how they attract customers.
Potential customers: This section contains information about potential customers. Based on the industry, the customer demographics will be determined.
Advertising: This is the promotion of products or services to customers. This list lists the various ways the business can do this. It can be newspaper, radio, television, or magazines. Direct mail, Internet, and telemarketing are all examples.
E) Finance Plan
Cash is the lifeline for a business. With cash, your business is safe. These items will be found in this section:
Statement of Profit and Loss: This statement lists the estimated revenue and expenses for a particular period.
The balance sheet measures the business resources (assets and liabilities) and the three-year projected balance sheets. Projections for the first year will be made monthly, while those for the second and third years will be made quarterly.
Cash-flow projections: The cash flow projected for the business. It includes income and expenses. Cash flow pays the bills.
