How to write a business plan? Step by step instructions for writing
Useful instructions on how to write a business plan. Note!
Even if you first wondered how to draw up a business plan, you understand that it is impossible to get a finished document in 10-15 minutes. However, all the time spent will fully pay off.
A well-written plan will help outline the stages of opening, a project development plan, assess the risks of activities and get help from investors.
Being able to articulate what you want and how you plan to achieve it is half the battle.
It often happens that a beginner entrepreneur, faced with risks that he did not draw up on paper in advance, loses motivation and abandons business development. Therefore, you need to pay due diligence and write a competent business plan.
How to write a resume section in a business plan
This part of the document is the shortest, it is enough to make 5-7 sentences.
But its value should not be underestimated. This is especially true for those who need to draw up a business plan to receive financial assistance from investors or a bank!
The summary should concisely indicate the very essence of the project. Depending on how interesting and succinctly this section of the business plan will be drawn up, potential investors will either enthusiastically study everything from cover to cover, or immediately close and postpone the document.
Drawing up a business plan: company activities
How to write a business plan? This question is often asked by most people who are thinking of starting their own business, starting a startup, or finding an investor. Everyone understands that the answer to the question "how to draw up a business plan competently and correctly?" is an integral part of the success of the company and enterprise. The 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 view of the company's performance in the long and short term, and can be edited along with changes to current plans and strategies.
Eminent people in management and marketing such as Brian Tracy, Stephen Covey, John Maxwell and many others believe that most people come up with dozens of ideas every day. However, not every idea grows into a successful business idea. In order for a business idea to become feasible, it is necessary to answer the question "how to correctly draw up a business plan?" How is a business plan written? It is possible to draw up a business plan correctly if you study each of its sections in detail:
- Introductory part or summary 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.
Below will be information on how to write a business plan and step-by-step instructions on what data must be specified in the sections.
How to create a business plan yourself and what is needed for this?
Before drawing 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 SWOT analysis, which structures all information.
What is SWOT analysis and how is it used in a business plan? SWOT analysis is needed in order to assess the internal and external resources of the company, drawing up an objective picture for the business plan and consists of the following components:
- Strengths - strengths of a product or service, for example, low cost of production, high professionalism of employees, innovative product component, attractive product packaging or high level of service of the company, etc. .
- Weakness - weaknesses, these include such factors as lack of own retail space, low brand awareness among potential buyers, etc.
- Opportunities - business opportunities imply such factors as implementation new materials and technologies for the production of a company's product, obtaining additional funding for a project, etc.
- Threats are threats, for business these can be criteria such as the economic and political situation in a country or region, peculiarities of consumer mentality, level development of technologies in the territory of doing business, etc.
How to make a business plan more informative?
Before filling out the sections in detail, collect as much additional information as possible on the topic of your future project. You need to analyze the industry, study ways to promote your products / services, understand which companies are your competitors in the market. Also estimate the amount of tax deductions for your company and the resources of the future project, for example, cash, intellectual, time, personnel, and so on.
Most likely you are having difficulties with your business plan. Either with its writing, or with an understanding of what it is and what it is for. Actually, there is nothing special about this problem. For entrepreneurs of various levels of training, experienced or beginners with a specialized economic education, or those who have a peculiar talent for a certain type of activity, writing business plans can be difficult. And it's not just a lack of skill or specific knowledge of how this is done. The main difficulty is in understanding what it is in principle.
Do you need a business plan for an aspiring entrepreneur or not?
Often, those who are just embarking on the path of entrepreneurship and create their own project from scratch, there is a strong opinion that writing a business plan can be postponed "until later", to do it only when such a document is required for taking a loan or other purposes. That is, it is considered a kind of "obligation" for situations of communication with banks and investors. And if the task of obtaining a loan is not worth it right now, then the business plan can wait.
This opinion is fundamentally wrong, it deprives a novice entrepreneur of the opportunity to see the prospects of his project and does not allow a comprehensive assessment of its potential risks, even if this is a “simple” broiler raising enterprise at home. This approach is fraught with trouble in the future and, accordingly, can lead to the death of the entire project.
Having a business plan will not only allow you to see the whole picture, it solves a number of problems for the owner or someone who is trying to implement the idea. It shows:
- the prospects and potential of the project;
- possible "bottlenecks";
- in which direction to move for development;
- how much time and money will be needed to implement the idea and promote it.
And, most importantly, a business plan can suggest that a project is not viable or not profitable. That is, he will not allow you to make a mistake and waste time and savings.
Order a business plan or write yourself?
There is another approach that is currently in vogue among middle-class entrepreneurs. By the way, they are sometimes "sinned" by successful businessmen, owners of large dynamically developing and profitable enterprises. They order the preparation of business plans from specialized companies that practice this type of service. The option is, of course, acceptable. But often the customer receives a voluminous document of one hundred pages, which absolutely does not reflect the peculiarities of his particular business, incomprehensible and too general.
Naturally, some calculations of a specific nature, market research, forecasting can be entrusted to a third-party company, where this will be done on a professional basis. However, only a business owner or a person who knows it from the inside is able to fully and comprehensively describe it, analyze the prospects and possible problems, and also show it in a profitable plan for obtaining investment. He will be able to do this so concretely and with reference to the company that it will be immediately clear here what kind of business we are talking about, what real potential and “problem areas” it has, what can be done to minimize them, and the like. This is the format that most attracts investors.
What is a business plan in essence?
When organizing your own business, you must be sure to competently approach all issues related to this matter. One of them is how to write a business plan.
Any project contains at its core some kind of idea, which in itself does not carry value, because every day most people give birth to dozens of ideas. Anyone could have come to such a stage in life when it arose, but for its implementation there was not enough time, energy, or knowledge of how to draw up a business plan correctly. It is for this that it is worthwhile to figure out what it is, what it is for and how to correctly approach its compilation. This information can be useful for beginners and entrepreneurs, since any successful project always has a plan to achieve the goals that it faces. Keeping everything planned can help save time and money.
What is a business plan
So, before drawing up a business plan, you need to understand that it should be based on a specific goal, and not on a dream. If you do not have a specific scheme of actions, then it is unlikely that the idea will someday become a goal or an implemented activity.
Any term has not one, but many definitions. Before describing how to draw up a business plan, it is required to note that this concept has such a definition.
A business plan is a manual in the form of a document that describes not only the idea of the project itself, but also the business processes and mechanisms used to implement them, aimed at achieving the goals stated by the author of the document.
Business Planning Purpose
Like any other process, there must be a specific goal. In this case, the success of the project directly depends on the combination of three key factors:
- point "A", that is, awareness of what level you are at at the current time;
- point "B", that is, a clear idea of the ultimate goal that stands in front of you or your company;
- understanding what sequence of steps is required to move from one point to another.
Small and Home Business Ideas, Stock Market Investments, Stocks, Forex Trading
How to write a business plan Step by step instructions
During the construction of the Great Wall of China, thousands of workers spent many years laying bricks, digging the ground, and dragging clay. And they managed to pay back a great structure only because someone had foreseen all stages of construction in advance. People knew where to get bricks and dig the ground, where to carry clay. There was a plan, and it was successfully implemented.
Now in China there is a proverb - "the construction of the Great Wall begins with the first stone." For an entrepreneur, the first stone in the foundation of his business will be drawing up a business plan, step-by-step instructions for the development of the company. [adsense1]
What is a business plan?
According to the formal definition, a business plan is a document that substantiates the success of a commercial enterprise. The more detailed it is, the less pitfalls will emerge in the future. The record that you need to buy a machine and start producing a profitable product does not make any sense, since it does not answer the following questions:
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- which machine to buy;
- where to put it;
- who will work on it;
- why it is necessary to purchase this particular equipment, and not another;
- how the sales will be carried out.
This is not a complete list of questions that need to be answered before starting a case. And even if "in the head" there is a general idea of development, it gives nothing. Some thoughts will be forgotten, some will be missed. A project made for personal use is like a notebook.
Only what is in paper or printed form makes sense. The most brilliant idea, which has not received development on paper, becomes meaningless.
What an investor needs