Writing a perfect business plan.
A business plan is a document in which a business opportunity is identified, described, and analyzed. It provides a roadmap for your business goals and how you plan to achieve them or convert a business opportunity into an actual business.
- The function of a business plan
A business plan functions both as a planning and management tool.
Importance of a business plan
- It provides the overall analysis of the business or business opportunity.
- It enables one to determine whether a business opportunity is practical or not.
- It enables one to make a strategic approach to the business
- Helps in managing a business.
- Helps in serving as a business card for introducing the company to others.
How do you write a perfect business plan?
The executive summary
This is where you introduce your company by describing the product or services it will offer, the problems it will solve, and how it will fit into the current market place. This section requires you to explain why your business idea is essential and how it can solve problems in an easier, cheaper, and faster way for your prospective customers.
You will be required to explain how much it will cost and the amount of financing you will need. Provide an explanation to your investors why you need and how you will use any funding you seek. Be specific in how you will use the money to lend to you and how the investment will help grow or increase the company’s profits.
This is where you provide crucial information about your business, goals, and the customers you plan to serve. You need to have a clear understanding of the type of people you will sell your products to or the services you will offer them. Determine whether your customers will be regular buyers or one time buyers. You will also need to determine whether your customers will be consumers or businesses.
Evaluate your target audience
You will need to be precisely sure of the people who will buy from you. Evaluating your target audience enables you to have a comprehensive understanding of your business idea. Assess your target audience involves:
- Demographics, such as age, gender, and social status.
- Firm graphics such as size, revenue, and services of the company.
- Location of the target audience
- The profession of the target audience
What are your opportunities?
When writing your business opportunities, you need to write down your maximum potential opportunities for business to grow. You need to include other opportunities you will have if your business grows as expected.
Understand the competition
Every business experiences competition in one way or the other. Competition occurs between companies selling or offering similar products to achieve profit, revenue, and market share growth. You will need to indicate your direct and indirect competitors, and what will reduce competition from other companies. Finally, it’s crucial to show how your business will be different from other companies in terms of value, price, quality, and services.
Build a financial plan
Your business plan should include a financial plan by adding the overall cost setting up your business. The financial information should include:
- The cost of producing or buying products.
- Cost of raw materials, labor, and manufacture.
- Distribution and marketing cost.
- Fixed and variable overheads.
Include an outline marketing plan
The marketing plan is the approach and continued effort you will undertake to achieve your business goals and objectives. You will need to include the following;
- Pricing- what will be the price of your product or services?
- Position- how will your service or product integrate into the current market?
- Promotion- what channels will you use to persuade or communicate with your customers?
- Profit- how much do you expect to make from your services or products?
- Place- what are your sales outlets?
In the last part of your business plan, you’ll need to present the financial goals and expectations that you have laid out according to the market research. You need to present your estimated revenue for the first 12 months and the annual projected earnings for the second, third, fourth, and fifth years of your business.
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