Most entrepreneurs when they start out their business are faced with one burning question, “How to write a business plan?”. Entrepreneurs carry an iron-clad belief about the success and path they want their business to take, however where they do struggle at times is putting the same on paper and raising funds.
What is a business plan?
As Wikipedia states, “A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals.”
The three key main parts are goals, means of attaining the goals, and the time frame for the same. No business plan is complete without these three details.
Steps to write a business plan
A business plan should follow a logical pattern such that the reader too feels and shares the same passion as the entrepreneurs.
1. Company Description
First, a brief about the company should be given. This should include the name of the company, the structure of the company, the management team, and the location of its headquarters, and the company history.
2. Mission Statement
A mission statement is a short statement giving outsiders an insight into what an organization does, why it does what it does, and its primary products and geographical location.
3. Business description
After this, we dive into the business that the company intends to carry out. This is perhaps the most important aspect of the entire plan. This will be an extensive and well-covered explanation about the types and nature of business.
4. Products and target market
Here we list out our products and services rendered, and also the market towards which they are targeted. The methods of targeting and acquiring customers are also described in detail here.
5. Short and long term goal
Then we focus on the short and long term goals of the business. This is where we have the chance to reel in a potential investor. It should be ensured that the goals are ambitious and realistic. Sufficient data and analysis to back up the goals should be provided. It is not necessary to go into the details at this stage.
6. Vision Statement
We conclude our business plan by stating what our vision for the company is and how we envision the future of the company.
Tips to write a business plan
A few pointers to be followed while writing a business plan are to ensure that it reflects your own passion. Generally sticking with high-level information and overview at this stage is a good idea. It is not required to delve into the details. Do not get carried away while writing about your business. Ensure it is crisp and concise. Also doing a proof check of the document is mandatory.
Here’s to writing a successful business plan!!