For your business to be successful over the long term, you must develop a business plan. A great business plan provides a guide for the future of your business and gives you a clear understanding of your business’s financials and the competition. Without a good business plan, you may have problems attracting investors and securing financing. Here is a look at some of the steps involved in creating a great business plan.
Do Research
Research your product and how it may fit into the market. In order to create a great business plan, it’s important that you have a clear understanding of your business, your top competitors, and the overall market itself.
Record Everything
Keep in mind that investors are only going to support your business if they are convinced that they will receive a return on their investment. That’s why many investors will want to know everything about your business before they agree to help. Make sure that you keep records concerning your expenses, future projections, and cash flow.
Components of A Business Plan
Executive Summary
The Executive Summary should be on the first page of your business plan. The Executive Summary should include a mission statement explaining the primary goal of your business. Try to summarize the problem that you are solving in the market. You should also include a description of your business’s products and services, as well as the ownership structure.
Company Overview
Write a brief overview of your team, as well as an explanation of why investors should support you and your team. List your business’s registered name, address, and the names of the key decision-makers in your business. Also, list your business’s legal structure.
Objective Statement
The objective statement should outline your business’s goals and detail how you plan to accomplish them. The objective statement should include both short term and long-term goals. List several reasons why potential financing will help your business and explain how the investment will help your business achieve more growth in the future.
Products
Detail all the products and services that you plan to offer. You should include an explanation of how your products work, the pricing model for each product, your target market, and your sales and distribution strategy.
Marketing Plan
Define your marketing strategy and how you plan to implement it. You should have a clear vision of how your products and services will appeal to customers. List all the unique ways that your business is different from your competitors.
