Step-by-step guide on how to write a business plan

Have you learned how to write a business plan? Before you venture into any business enterprise, it’s always prudent to have a formal business plan.

Step-by-step guide on how to write a business plan

Maybe you already have solid business skills and a great entrepreneurial drive, but having a business plan is still very important, especially if you are seeking investors.

This will give you a fair idea of what business you are going into, the pros and cons, as well as how best to maximize profits.

Studies have shown that people who go into business without a business plan often tend to fail. That’s why it’s time to learn how to write a business plan.

Here is a step-by-step guide on how to write a business plan:

Executive Summary

This is a brief summary of your business goals and purpose. A good summary should be able to outline the products and services of your company.

It must also have a description of the market you are going into, your objectives, competitors, growth potential and an overview of your funding requirements.

Overview and Objectives

This section provides details on the specific industry that your business operates in and its key objectives.

It also shows major competitors, industry trends, estimated revenues and how the company will be able to stand the competition from major competitors.

Products and services

This section simply details the products and services that your company wants to bring to the market, as well as an overview of the market size, backed by numbers and other sources.

Sales and Marketing

The sales and marketing analysis details how the company intends to sell its products to the target market.

This section discusses the channels to be used to sell the company’s products, as well as the business’s unique selling proposition. This includes pricing strategy, advertising, promotion, sale, distribution and after-sales support.

Competitive Analysis

This is an analysis of whether the company understudied the market and is sure that the market is in demand for the proposed business model.

It also details information on the market’s demographics and geographical location, as well as consumer behavior and market needs.

Operations

This gives an overview of the business’ physical requirements. These include office space of the company, machinery, labor and supplies.

This differs from business to business, because labor and logistics are not always the same when it comes to home-based consulting business and others that need warehouses.

Management Team

This section analysis the skills, experiences and resources that the company’s management team will need.

It discusses whether the members of the management team have industry experience, what they bring to the table, their salaries and what positions they will individually occupy.

Financial Analysis

This details whether the business will obtain its financing from banks, investors, or venture capitalists. The financial plan also discusses projected income, cash flow and balance sheet.

Should the business need outside funding, the financial plan determines whether that will be successful or not. It also gives insight into whether the business has a chance of being viable or not.

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