"Writing of a Business Plan"
For any entrepreneur who is planning to venture into business, a business plan is a must-have document that contains the details of the proposed new venture. The business contains a vivid description of both internal and external features of the business yet to be put into existence.it also serves as proof that the entrepreneur is ready to invest in the opportunity and has sufficient information in terms of the required research.
Importance Of A Business Plan
- It serves as a sign of the commitment of the entrepreneur
A business plan shows how the entrepreneur is willing to dedicate their finances, effort and even time to carry out their idea implementation
- It acts as a financial saving tool
To implement a business idea, finances play a key role since the business might require one to rent premises, to have a company registered and most importantly the capital must be available. A business plan, therefore, enables one to plan how to be financially sustainable.
- It facilitates practical and more organizational about the business and its environment
A business plan brings the idea into reality in a virtual way and it gives a sense of direction
- It serves as a management plan
A business plan gives a road map and enables good decision-making practices
- It gives the business idea a feasibility idea
As a result of the ever-changing times, a business idea should be in a position to withstand all the bad recessions that are likely to come about. A business plan, therefore, determines the viability of the idea
- It acts as an analysis tool
A business plan enables the entrepreneur to assess all the risks and challenges involved in venturing into the business that they would like. They are therefore able to come up with ways of mitigating against uncertainties
- It gives a timetable for planning and serves as a blueprint for the entrepreneur
The entrepreneur is able to lay out a solid plan on what comes next after every step taken towards the realization of the proposed business venture
Perspectives Of A Business Plan
- Market perspective
The business plan should bring out the value that it is adding to the already existing marketing
- Entrepreneur perspective
The plan should be in support and in accordance with the resources that are available to the entrepreneur and also their interests
- Investors’ perspective
The plan should be appealing to the investors such that they will be in a position to benefit from the idea in case they choose to invest in to
Components Of A Business Plan
- Introduction stage
This introduces the venture and therefore here state the name and addresses of the business location .also include names and contacts of the entrepreneurs and a brief description of the business.
- Executive summary
This is a summary of the entire plan and it should include the strong points of the venture, how the money will be generated and also the targeted customers
- Production plan
This should state a brief description of the production process, the raw materials needed, labor requirements and availability too
- Operational plan
This is how the business will carry out its business operations and which technology will be used to carry out transactions
- Organizational plan
This is basically the form of business that the venture will be.
It can either be a partnership or sole proprietorship
- Management plan
Outline the management personnel needed, their areas of expertise, skills, qualifications, duties, and responsibilities
- Marketing plan
This gives a description of goods and services that are to be offered and also include the target market. Also state the marketing strategy, the market size, the location of the market and its potential growth.
- Financial plan
This includes all the projected sales, break-even point analysis, detailed budget, projected balance sheets, and cash flow
- Industry analysis
This section includes the specification of the industry in which the venture falls undertaking into consideration the various rules and regulations governing the industry
- Assessment of risks
The risks and challenges that are likely to be faced by the new venture should be highlighted here
There should be supporting documents such as collected data, management, and organizational charts
Tips to consider when presenting a business plan
- Be precise and specific to the point
- Focus on the problem which you aim to solve with the idea
- Make sure you can demonstrate your market
- Sell your product or service
- Let the investors know what they will gain out of your business
- Make sure to close the deal
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
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