We need to understand the need of the business plan, when the business is a small scale then you may not need a business plan. But when you like to expand your business or you want a potential growth in your work environment then the business plan is a must do work. A good business plan is one that guides and improves the day to day decision making of the business operators, such that the business prospers into a profitable, going concern for the current owners/investors.
We need a business plan in order to have a path to follow to your success. No general goes to war without a “plan”. No serious business person goes into a venture without a clearly defined strategy. A well-written business plan will include achievable milestones or KPI’s (key performance indicators) to enable you to “sign off” mini achievements along the way. You are seeking to document your strategy to help your internal team understand it, You are seeking a bank loan or investment and other circumstances.
What is a basic structure of a business plan?
There is a basic structure that is required for a good business plan:
Executive summary
Business overview
Description of products and services
Industry overview
Marketing strategy
Operations plan
The Financial plan, these parts are crucial to making the readers of it understand your future business in a full way. A plan should cover all the important matters that will contribute to making your business a success. These include the following:
Basic business concept:
This is where you discuss the industry, your business structure, your particular product or service, and how you plan to make your business a success.
Products and services and their competitive advantages:
Here's your chance to dazzle the readers with good, solid information about your products or services and why customers will want to purchase your products and services and not those of your competitors.
The background of management team and key employees:
Having information about key personnel is an important but often misrepresented portion of a business plan. It’s not a long and detailed biography of each person involved but an accurate account of what they've done and what they bring to the table for this specific business opportunity.
Financing needs and working capital:
This is based on your projected financial statements. These statements provide a model of how your ideas about the company, its markets, and its strategies will play out.
Other special circumstances:
If you are participating in a government program or some other special program, you might be required to provide a business plan consultant as a filing requirement.
The start-up business plan is not just a document that will bring you investors and funding. It’s also a great way for first-time entrepreneurs to help them declare their vision and plan for their company. Having the business plan in your hands will force you to think and develop your strategy even further. The business plan will serve you as a guideline to track your progress and hold yourself as a CEO more accountable about your future steps.
