Without a solid business plan, a business fails easily. This is a document in which you describe your plans as a starting entrepreneur in detail – such as your product or service, the price, and the expected profit.
Why is a business plan important for your business?
First and foremost, it isn’t compulsory as a starter to create a business plan, but it is wise to do so. You write a business plan for yourself because it forces you to make your idea concrete and to formulate it clearly. Also, you can see whether your plans are feasible and whether there is a market for your product or service. A business plan will also help you gain insight into your own strengths and weaknesses.
Many starting entrepreneurs only make a business plan when they need money to put their idea into practice. After all, potential lenders decide on the basis of your business plan whether they want to invest in an idea or not – they estimate the risks based on the plan.
Writing a Winning Business Plan
What does a business plan say? Here is a structure format you can use.
A business plan contains at least the following subjects:
Assume that the reader has little time. Therefore, creating a business plan starts with a summary of a maximum of two sheets of A4 papers. Here you’ll discuss your idea, the market, potential competitors, potential customers, and how you want to distinguish yourself in the marketplace. It is also very important that you state the most important figures from your financial plan.
Description of Your Idea
This is the step to explain what your idea is and why you want to set up a business around this product/service. You will also discuss the needs your business is planning to meet.
Describe Your Company in General
This is the section where you need to discuss how your company is organized. You need to address some questions that may come to mind.
Be prepared to answer the following questions when you are writing this section:
Where do you establish your company?
Do you start alone or with others?
Are there risks for your company?
Do you hire staff?
How do you arrange your retirement provision?
Are you taking care of your administration yourself or are you hiring a bookkeeper or an office manager?
Your Financial Plan
This part is very important; your investors will also be interested in it. You need to state the amount of money you need, where you will get it from, and what you want to use it for. In your financing plan, you show in figures that your plan has a chance of success. If you are looking for investors, you have to convince them of this section. Use common sense and always be honest. Here, you include an investment budget, operating budget, financing budget, liquidity budget, and personal budget.
Your Marketing Plan
This is the step where you need to clarify how your business will be getting customers. You must describe which market you want to enter, what developments you see there, how you will profit from it, who your competitors are, who your potential customers are and how you think you will win them. This part will be useful for your business in attracting more investors. It will also serve you in the future.
Include Personal Data and Entrepreneurial Qualities
You will have to present yourself with a business plan. Provide some personal information, including that of your potential business partner. Think of personal details, marital status, and work history. See this as a resume. Also, it is good to explain why you want to become an entrepreneur, what you want to achieve with your company and what your strengths and weaknesses are. How you will develop yourself as an entrepreneur. By now you should have a clear picture of how to write a winning business plan. Ensure that you keep it simple and concise. It must be easy for the average reader to understand.