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How to write a business plan step by step

A business paln is not only for big businesses or startups but every company needs one. This guide to achieving success in your businness can be just a single page or a several page document. Read on to find out what type of business plan you need and how to write the perfect plan in 5 easy steps.

ABOUT

A business plan is not always a formal structured document which turns to put most business owners off such is only a requirement if you are looking for investors or a large commercial loan. Business plans are not dynamic as they constantly change with your market conditions and through reviews and revisions.

It’s very important for running a business, and you should not consider it only when sorting for loans or starting a new business. A business plan details funds needed to start and sustain through growth and to profitability. They are also used to strategize, manage responsibilities and track results.

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A business plan comes in different forms and so before you start, know what your goals are and who you are writing for (your audience). Plans differ in length, language, purpose, detail and presentation. A plan for internal strategic planning will have less formal language than an external plan for let’s say a top venture capitalist.

Business plans have been categorized into 3 categories namely;

The one page business plan

This is a quick summary of your business plan usually delivered on a single page. It is very concise and straight to the point. It is usually used when delivering a pitch to a potential investor. Also used to outline strategy.

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The internal business plan

This is written by management for the internal publics of the organization. This plan usually comprises of strategic plans to direct and aid growth in the company. Gives your employees a clear picture of your overall strategy.

The external business plan

This is an extension of the internal business plan which is a formal business document that is presented to outsiders/investors usually to secure funds/loans. This is more detailed and usually consist of several pages.

COST

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Depends on the business plan that you are going in for. If could be free if you are writing for yourself.  Prices range between GH3, 000.00 cedis to GH15, 000.00 cedis if you are looking to hire a professional.

DURATION

This could be from a few minutes (writing a shopping list on a napkin), hours (a quick one page business plan) or days to months (a detailed external business plan). But do remember that with a business plan, you will continue to review and revise as your company grows.

TOOLS NEEDED

Pen/pencil

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Paper (stationary)

Computer/laptop

SUPPLIES NEEDED

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STEPS

A business plan typically includes;

  • Financial projections and plans

Here is a simplified 5 step process to writing the perfect business plan.

  • RESEARCH
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This is the first and foremost step for any business plan. You must know your product, company, market and competition intimately to be able to put together the perfect business plan. It will be to your advantage to know everything you can about your business and the markets you are hope to perpetuate. This serves as a strong foundation for your company.

  • WRITE DOWN YOUR PURPOSE.

A business map which serves as a road map cannot function if you do not know why/where you are going. Your purpose should translate to your goals. Your purpose should be written with your audience in mind. You may have a singular business plan but you may need to adapt its purpose to suit your audience.

  • WHO ARE YOU?

Create a compelling company profile. Let your passion resonate on paper. Your company profile simply includes history of your organisation, target audience and market, products and services, your situation and solution, resources and competitive advantage. This is what is usually put up on the company online presence to attract new customers and investors.

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  • PUT IN PLACE A STRATEGIC MARKETING PLAN.

A business usually revolves around making profit that means your marketing plans should be a priority. You should focus on who, where, what, how, when and which of your purpose. The most important aspect of your marketing plan is to be strategic.

  • WRITE EVERYTHING DOWN.

Document every aspect of your business down.  This is crucial especially for an external business plan because, investors always want to know everything. There is the expectation that your business is going to make money, and therefore investors would like to know your every move. This does not necessarily mean that your business plan should always be on tangible paper, it is rather advised that should be electronic probably on your computer so that changes are easier to be made.

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