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What is a Business Plan?

So you have a business idea and would like to test its feasibility? Just like when you start to build a house, you have to consider many factors. You have to set up and get ready for the big task ahead. You have to consider the placement of different rooms, whether you want a back garden to plant flowers or whether you want a gazebo in your front yard. You will, additionally, have to think about finances and when the actual construction project will start and find a suitable contractor who will help you achieve the house of your dream. The same can be said about a business. Before venturing out, you need to take necessary precautions to ensure that you start on the right foot. A well written business plan can save a business owner from financial losses and emotional distress and anguish at one point or another. One way to ensure that you set out on the right foot is to draw up a detailed business plan for your business. But is that all there is to a business plan? Of course not. Writing a business plan is a process and can be done for various reasons. Below, we outline the reasons why people business plans, how to write a business plan, the basic business plan outline and how you can access business plan samples that will help you compile your own.

Reasons for Writing a Business Plan

Reasons for writing a business plan change over time according to the needs of the business. As such, there are different reasons for writing a business plan including:

• Feasibility test. A business plan is written in a bid to test whether the business is tenable. The business plan is, therefore, a safety net that shields you against dwelling on ideas that do not hold water. By the time you are compiling a marketing analysis, you can establish if the idea is plausible or if you should move to the next.

• Securing funds. When a venture is new, the business owner probably has start-up capital to take them through the day. However, many businesses eventually need more funds to stay in operation. These funds are usually dedicated to different business activities. A business may be experiencing a downturn, or it may simply need new equipment. Knowing how to write a business plan gives you the best chance of getting funds for operation or expansion.

• Attracting investors. As an entrepreneur or business owner, you will need venture capitalists to help you achieve some of your goals. It is, therefore, inevitable that you will make a business plan presentation to different potential investors every once in a while. A brilliant business plan presentation should be supported by a well written business plan that enables investors to understand the background and do a complete analysis of your business.

Tips for Writing a Business Plan

When you have your business idea in mind, the next logical step is the actual compilation of the plan. What can you do to make the business plan interesting? Below we outline some tips to help you craft a winning business plan.

• Use concise language. As you continue to write your business plan, ensure that it is a succinct proclamation of all that you hope your business will be or it already is. While it may be tempting to use filler words and use long unnecessary sentences, it is both a waste of your time and space because investors and other relevant parties are more interested in terse and well-reflected upon plans.

• Maintain honesty. As children, you were most probably taught that honesty is the best policy. Well, this is the time to pay attention to that advice. Be honest with yourself and your audience as well, especially concerning the challenges and opportunities you have in your business. Consider going through other business plan samples to see how successful businesses presented themselves.

• Use visuals where possible. To make your work aesthetically pleasing, use visuals such as charts, graphs, and images to grab the attention of the person reading the business plan and helping create an interesting flow.

• Creativity Your business plan should contain an idea that is attention-grabbing and stands out from whatever others have come up with before so that you have better chances of achieving your objective. Make use of business plan templates online to guide you but edit it appropriately to suit your needs.

Business Plan Outline

While different business plans may contain different elements, it is important to note that some elements in the business plan outline tend to remain the same. The order in which they are written should remain chronological. Also, ensure that you have the essential elements relating to markets in your plan. The essential elements include:

• Executive summary. While this is usually the last part to be written, it should appear before other parts. Ensure that this part of your business plan is outstanding as it provides an overview of the rest of the paper and is what the investor and other interested parties will read.

• Industry overview. You should give an overview of the sector your business will be part of. Information in this section should include which industry you are part of, major events and trends and players and industry sales. You should also summarize the role and place of your business in the industry.

• Market analysis. This involves an analysis of your target group. Analyse the demographics and location, demand and how it is met. This shows that you have thorough and necessary knowledge of the market and can, therefore, make the necessary predictions.

• Competitive analysis. This is an exploration of your competitors, both direct and indirect. You consider the competitive advantages you have and which they have as well and how you will enter the existing market. This is how you persuade the reader that the plan will be successful.

• Sales and marketing. This includes an explanation of your pricing, advertising and promotion, sales strategy and products and services. The reader will understand your unique selling preposition in this section.

• Ownership and management plan. . Inform the reader of the resource management pans and legal structure of the company. Include the advisory board as part of the management resource if you aim to get funds.

• Operation plan. The operation plan describes the facilities, location, and equipment. It also describes the ideal employees, suppliers and inventory requirements.

• Financial plan.This is where you include financial statements, funding requirements, and financial analysis. It also includes a presentation of income and cash flow statements and balance sheets.

• Appendices. There may be information that can help prove the credibility of your business but may have interrupted the flow of the business plan. Include it in the appendices and as exhibits.

While this guide may provide tips on how to write a business plan, you may still need help with drafting your business plan. We at onlinewritingexperts.com can do that for you, providing you with a well-written document for your business success.