How to draw up a business plan? This question is often asked by most people who are thinking of starting a business, starting a startup or finding an investor. Everyone understands that the answer to the question “how to draw up a business plan correctly?” is an integral part of the success of the company and the enterprise. A completed business plan should provide a complete picture of your business from analysis to development prospects.
A business plan is a document that answers all questions related to your business and provides a comprehensive picture of the company’s performance in the long and short term and can be edited along with changes to current plans and strategies.
Outstanding personalities in management and marketing and many others believe that most people give dozens of ideas every day. However, not every idea develops into a successful business idea. In order for a business idea to become tangible.
How is a business plan written? It is possible to draw up a business plan correctly if you study each section in detail:
- Introductory part or resume of the project;
- Description of goods and services;
- Market analysis and marketing strategy;
- Production plan;
- Organizational plan;
- Financial plan and budgeting;
- Expected results, risk assessment and development prospects.
Before you draw up a business plan, you must first assess the current situation and work with the information. One of the recognized technologies for preliminary analysis before drawing up a business plan, especially for small businesses, is a SWOT analysis, which structures all the information.
What is a SWOT analysis and how is it used in a business plan? A SWOT analysis is needed in order to evaluate the internal and external resources of the company, having compiled an objective picture for the business plan and consists of the following components:
Strengths – The strengths of a product or service, for example, this may include low production costs, high professionalism of employees, an innovative product component, attractive product packaging or a high level of company service, etc.
Weakness – weaknesses, such factors as the lack of own retail space, low brand exposure among potential buyers, etc. can be attributed to them.
Opportunities – business opportunities include factors such as the introduction of new materials and technologies for the production of a company’s product, obtaining additional financing for the project, etc.
Threats – threats, for business it can be such criteria as the economic and political situation in a country or region, especially the mentality of consumers, the level of technology development in the territory of doing business, etc.
How to draw up a business plan yourself – step by step instructions
1. Introduction to the resume project
In the introductory part of the resume project, you need to make a positive impression on investors and give a general description of the business plan as a whole, so the following points should be considered in this section:
- Company line of business;
- Target sales markets and the company’s place in them;
- Profitability and term return on investment;
- Staff and decision-makers;
- Planned quantitative and qualitative indicators as a result of work by periods.
In summary, it is necessary to justify what investors will receive with the successful implementation of the project and what are the chances of losing capital or part of it in the event of unfavourable developments. The resume is written at the very end when the main part of the business plan has already been written.
2. Description of goods and services
In this section, you need to describe what goods and services you plan to implement and understand the portrait of your client or target audience. To do this, you can make photos and videos of your line of goods and services. Carry out a market analysis to determine whether there are similar products or services in your target market and describe a pricing model. Try to answer the question “can you compete with existing companies in your segment?” After such an analysis, you will have a clear idea for whom you produce your products, as well as understand the features of your product.
3. Market analysis and marketing strategy
In order to understand the conditions in which your company will work and which competitors can be distinguished in your environment, you need to prescribe the marketing strategy as accurately as possible. The strategy includes an analysis of the market environment, competitors and your strategy for promoting the product in the current conditions to the final consumer. Studying promotion methods and tools will allow you to competently draw up a business plan and promote your products on the market. After all, this, be sure to draw up an approximate sales plan for the quarters in order to understand how much revenue and net profit your company can potentially bring.
4. Production plan
This section can be skipped if your company is going to provide services or sell goods. If your company plans to engage in production, then you need to understand how much production capacity you will need to implement production, in what sequence the equipment will be implemented and prepared for work. Assess the estimated dynamics of production growth over time and the logistics of the necessary materials and raw materials. Make a flow chart to see a picture of all your activities.
5. Organizational plan
In this section, you need to reflect your actions on organizing a business, divided into specific steps with the timing of each stage, the responsible person and the expected results.
6. Financial plan or budgeting
In this part of the business plan, you make a detailed estimate and plan the budget of the company. Typically, a company has one-time and recurring costs. One-time costs include the purchase of equipment or premises, an advertising sign, and so on. Periodic expenses include consumables, raw materials, rent, utilities, salaries, and the purchase of goods.
7. Expected results, risk assessment and development prospects.
You can consider several options for the development of events regarding your business, assess the risks and development prospects. Based on the expected financial indicators, analyze the business plan and try to evaluate your project.