A business plan is a written format of your business’s future. A document that tells you what to do? and How to do it? what are the strategies to be implemented? A business plan is a step by step planning written for our overview. To understand and implement in an effective way we need to have a business plan.
One has to do all the groundwork regarding the new business gathering the information, every information we gathered has to be put on a paper and has to plan according to the information. Before writing a business plan we need to set our Goals and Objectives for the new business and based on that we need to plan everything.
Our plan shows strategies to reach our goals and satisfy them in a certain period of time.
The things to consider for writing a successful business plan are
1.Executive summary
The executive summary should be 1–2 pages long and provide an overview of your business concept, key objectives of your business and your plan, ownership structure, management team, your product or service offering, target market, competitive advantages, marketing strategy, and a summary of your budget. Your executive summary should be written last after you’ve written the rest of the plan, each paragraph should be a summary of the more detailed, related section of the plan.
2.Business Description
Business Description should include details about the company, In short write about the company details. Mention the vision and mission of the company. You need to provide details of the products or services offered by the company. A detailed overview of all the products has to be written.
The company’s ownership and history of the company along with the objectives of the company are also to be written in the Business description.
3.Market Analysis
Before starting a business, it is essential that to make research about the business industry you are into. We should analyze the market and the competitors in that industry. A market analysis helps the entrepreneur to understand the market and the competitors. Based on the analysis the product or service has to be launched in the market to gain the share of the market.
With Market Analysis Strengths, Weakness, Opportunities, Threats (SWOT) of a business can be identified. With the help of SWOT analysis, adequate business strategies of a company can be identified.
4.Organization and Management
Every business has to be equipped with a definite and different organizational structure for effective running. Based on the industry we need to allocate the organizational structure and the management. An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims. It can also be considered as the perspective through which individuals see their organization and its environment.
Having all the resources and without proper management, there will not be any success for the business. So for every successful business to run we need an effective organizational structure and Management.
Management should have the capability of controlling any kind of issues and solve them effectively for better running of the business.
5.Operations and Management Plan
The Operations and Management Plan is designed to control all the functions and departments of the business on a continuing basis. The operations team will highlight the logistics of the organization, such as assigning responsibilities to the Management team, allocating tasks to each department within the company. Operating capital expenditure effectively for generating revenue.
It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs into outputs. Operations management is concerned with managing the operations function in an organization. Operations are one of the major functions in an organization along with marketing, finance, and human resources. The operations function requires management of both the strategic and day-to-day production of goods and services.
6.Financial Planning
This is the most part of the business plan. One has to plan all the expenditure for a certain period in the future. We need to maintain overall balance sheets, monthly cash flows, annual cash flow statements. Summarize each statement into a few easy-to-understand sentences and put these on a cover page for the statements. Be sure to document all of the assumptions you used in forecasting your revenues and expenses.
Financial plans are the ENTIRE financial accounting overview of a company. Complete financial plans contain all periods and transaction types. It is a combination of the financial statements which independently only reflect the past, present, or future state of the company. Financial plans are the collection of the historical, present, and future financial statements, a (historical & present) costly expense from an operational issue is normally presented prior to the issuance of the prospective financial statements which propose a solution to a said operational issue.
Every business beginner should has to keep in mind that an effective business plan leads to success in the market. If it is written effectively, the day to day work will be a lot easier and financial projections can easily understandable as every step and every plan is planned before. We can easily analyze the position of the business after a year or two and what measures have to be taken for achieving the pre-set goals.
