Planning is an important process before starting any business and making a written business plan is an important part of this process. Today we will discuss How to Make a Business Plan in proper way so that you can set up a business.Business plan is a kind of a map of your business (map) or blueprint in which general information about your business, business goals and how to achieve those goals are written. Business plans not only serve as your guide, but are also necessary for many important tasks like Bank Loan , Startup Funding or Business Partnership.
It is very important to make a business plan for almost all types of business loans , otherwise banks can refuse to give loans.
What is business plan
It is planned before doing any work. That’s Business applies above where the scheme is called writing Business Plan of. Actually, Business Plan is a document that answers all the questions like ‘what’, ‘why’ and ‘how’ of a new business. like :
- What is our business?
- Why do we want to do this business
- How will we do this business?
We get answers to all these questions through Business Plan . Business plan is mainly for new business, but even if an existing business is doing something new, business can be carried forward by making a business plan. Business plan does not just create a start-up but also establishes the business. Changes can also be made in the business plan from time to time according to the circumstances.
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Why a Business Plan is created:
You can think about what is needed to make a business plan. Through his Business Plan, the businessman clearly spells out the set goals and the strategies he is devising to achieve those goals. A business plan or business plan is very important for the following purposes: –
- Apply for Business Loan in Bank
- Fund raising for your Small Business or Startup in other ways like Venture Capital Firm or Crowdfunding
- Apply for any kind of Subsidy or any scheme related to Business
- For Business Partnership and Franchise etc.
A well-designed business plan not only makes it easy to get funding from banks and other external sources, but it is also helpful in internal operations.
How to Write a Good Business Plan – How to make a business plan
Any plan is made very thoughtfully. The same thing applies when creating a business plan. Before starting any business, its plan is prepared as a business plan. Therefore, some things are taken care of before making a good business plan. Prominent among them are:
- What is the core objective of creating this business plan?
- Who is the Business Plan being made for? Among the people reading this, are Investors or Bankers who have invested in business.
- What is included in your business plan?
- Do you need a brief or detailed business plan?
When these questions are answered, a businessman starts making his business plan. In any one successful and clear business plan the focus is on the following topics: –
1. What is the purpose of business – A well-designed business plan can tell the objectives of any business. Through this business plan, the businessman reveals what he has planned for his future. The details of what the people associated with the business will benefit from these objectives, also goes through the business plan.
2. Description of the clear description of Business – Through Business Plan, complete description is found about any business unit. It is through this business plan that another person gets to know how you started your business and what is your objective.
3. What are the products and services of the business – While designing the business plan, the businessman can decide what kind of products he has to produce and what services to offer.
4. Assistant in Market Analysis – When a businessman prepares a Business Plan, before that he also analyzes his related market (Market Analysis). It is only through this analysis that the advantages and disadvantages of the future can be known.
5. Description of business structure – In any business structure its employee and managerial capability is known. Creating a Business Plan also helps to know about the Business Structure.
6. Use of resources – The best means of any business unit is the money put into it and the time of the businessman. When making a business plan, you have to decide how to use both of these important resources.
7. Goal Setting – For any work to be done successfully, it is necessary to determine its goal. Determination of business goals becomes simple when creating a business plan.
Business Plan Template
However there is no fix format of any business plan and it is made in different ways as per the requirement. Generally a business plan has the following parts: –
Executive Summary – Executive Summary
The Executive Summary is the first part of any business plan and under it all the important things related to the business plan are written in summary form. Business Nature, Legal Structure, Product or Services, Target Market, Business Model, Management Team, Marketing Plan, Goals, Financial Projection, Fund or Loan Required etc. are summarized.
The rest of the business plan is written in this part, so it is better to make the part at the very end.
Company or Business Overview – Business background:
In this part of the business plan, the complete information related to your business is written in detail like
- nature of Business
- What you will sell – Product or Service Description
- What is your target market
- The legal structure of the business means that the business is a sole, partnership or company,
- Staff and management team,
- Business location
Apart from this, all the things related to the product or services of the business are written in detail such as: –
- What problems are being solved by your product or services or what are the people doing?
- How different is your product or services from others?
- Why people will buy your product
- How will you make your product and is that method the best?
- Have you registered Trademark of Products and Services, Patent etc.
Product / Service Description can also be shown in a separate section.
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Market Analysis – Market Analysis
In this section, all the important things related to the target market of your product or service are analyzed like: –
- Target Market, Market Size and Deemand
- Who You Will Sell – Target Customer, Their Behavior, Class and Purchasing Power
- Who are your competitors and how much market share do they have, their strengths and weaknesses
- Important Changes in Demand and Market in the future
Marketing Strategy – Market Strategy
This part of the business plan is considered very important. This section describes all the policies that you want to use to extend your product and services to the customer and for market promotion. Under this section you have to define the following things: –
- How to make your product or service your place in the market
- Who are your target customers who will show interest in your product or services first and how will you reach them
- What will be your pricing policy
- How will you promote your product or service like Direct Marketing, Advertisement Social Media etc.
- How will you deliver your product or services to the customer – distribution channels
- What will be your Selling Strategy?
Operations – Function
This is an important part in which Business Operations i.e. “How Business will Run” contains detailed information about all things related to it such as:
- Business Place – Where will you do your business? Will you buy or rent a place?
- Production Facility and System – What type of production facility do you have and is it according to the requirement?
- Purchase Plan – How will you buy your Inputs and is this the best way
- Production Plan – How will you produce your product? Based on Deemand or based on Estimates.
- Workforce Structure and their roles – The positions, scope and responsibilities of your employees
- Systems and Information Technology – What will be the main IT system of your business
- Store Facility – How much stock will you keep and where?
Financial Analysis – Financial Planning:
Financial analysis is the most important part of any business plan as this section presents all the important things and Projection of your business in figures or numbers. Let this part of the bank or venture firm to your business’s financial position and capital requirements of the shows on the basis Banks, Loan and Venture Capital Firms, Investment offer | This part mainly focuses on the following points:
- How much capital or fund do you need for business and where will you use it – Capital / Fund Requirement
- How will you raise this capital – Loan, Venture Funding, Crowd Funding, Own Capital etc.
- For how many years you will take a loan, what will be its security and how to repay it
- What will be the revenue / income sources of your business – Sales, Other Incomes
- What will be the exepnditure of your business – Purchases, Interest Payment, Rent etc.
- Profit & Loss Forcast for next 3-5 years of your business based on Sales, Revenue and Expenses
- Growth Forcast of your Business
- Business Risk and its possible consequences
Important Statements / Forcast of Financial Analysis
- Capital Requirement and Sources of Capital
- Sales Forcast of 3-5 Years
- Profit and Loss Forcast of 3-5 Years
- Cashflow Statement
- Balance Sheet
Business plans are the most important documents of your business which continuously guide you in taking your business forward. Therefore, great care must be exercised in its construction.
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