A business plan is one of the most important and strategic business tools for budding entrepreneurs to check and balance the possibility of a successful business prior to investing too much time, energy, and money.
A creative and well-structured business plan not only helps entrepreneurs to make their ideas successful but also helps them in achieving long and short-term goals. The main aim of the business plan is to keep records and track of the steps taken, resources require for achieving your target, and timeline of foreseeing results.
The business plan is not only a necessary tool for startups but it is primarily important for existing businesses. It should be updated yearly as a way to guide and sail the expansion into the new markets.
Research indicates that up above 60% of the fastest-growing businesses have proper business plans, this implies that even the existing businesses can benefit from updating their plans.
Your plan should include straightforward objectives for recruiting new employees, market analysis, financial projections, and potential investors. These aims and objectives should clearly demonstrate how they’ll help your business thrive and grow.
Here are some of the best ways to write a business plan
The executive summary is an overall summary of your business plans. It is the first step in writing a business plan and ideally consists of one or two pages, but many people extend it for their own satisfaction and for further clarification.
Preferably, the executive summary can act as a designed document that covers the main key points of your detailed oriented plan. In fact, it’s not very uncommon for potential investors to ask for only the executive summary when they are appraising and examining your business.
If your executive summary seems attractive to them, they’ll follow up with a request for a complete plan, presentation, and more detailed financials.
It is important to note that your executive summary should consist of a summary of the problem you are solving, a brief description of your products and services, a short summary of your target market, a concise description of your team, a summary of your financials, and your funding requirements.
This section provides an image of your business. It should answer two basic questions: “Who are you?” and “What do you plan to do?” Answering these questions provides an introduction to why you’re in business, why you’re unique, and why you’re a good investment bet.
It’s an opportunity for you to mention more intangible characteristics of your business, like your principles, ideals, and cultural philosophies.
Additionally, It also contains basic information that includes its registered name, address, names of employers, history of the company, qualities of the business, and description of products and services that it offers or will offer in the future.