Starting a Business -VII: How To Write a Business Plan?

create business plan

You can write a brief business plan or an elaborate business plan. The choice is yours. A few investors might look into a detailed plan and then decide if they want to fund your venture or not. Most of the banks, however, need an elaborate business plan. You have to mention the goal of your business clearly. Also, you have to specify why you want to start this business and how it is going to help the end user. You learn that very carefully when searching about how to start a business. You also have to render how it is solving any of the common problems of the customers. For instance, if you make a business plan for an app that lets you connect to all social media platforms, you clearly have to explain the wide application and utility of this product.

The same principle applies for all the ideas that you will depict in this business plan. It has to be clear and concise. You have to mention the number of people who will be working towards this goal in your team. You have to present your financial recap. This shows your capability to sustain a business. You need to mention the competitive advantage. You will also have to chalk out a financial plan for your business that clearly shows the funding required for your business. The model of your business will show how you plan to make money by doing this business.

  • create business plan
    Business Plan

    Create a Business Plan

You will need to summarize your plan in a single page that defines the objectives, tools, resources you will use to reach this goal. It is good to organize this business plan in different sections, like, executive summary, excel sheets of financial plan, goal, objectives, competitive analysis, operational plan, and summary of market analysis. Most of these sections will explain why your product or your business will prove to be profitable. The length of your business plan can depend upon the funding you seek. If you are expecting a lot of funds, then keep your business plan meticulously elaborate. This is like a compass that will show you where your funding options are headed.

  • Come up with an executive summary

The executive summary is about the concept and goal of your business plan. You can explain your concept and principles that you will apply to seek this goal. This has to be very crisp and clear. You should avoid using fancy language. Keep your language simple and articulate. It must show clarity in your thinking and planning. Anybody who reads it must be able to picture the goal of your business and why you want to do this business. You need not write about any of your financial goals in this summary. This section should only explain your business idea and how you are going to germinate it.

  • Write your business description

You can describe your business and also how you will be functioning as a business using flowcharts, ER diagrams, etc. You can use a variety of formats to describe your business. You can also insert a small live motion animated description to describe your idea as well. How you depict your business idea is as important as clarity with which you are able to describe it. More than feasibility, a few investors want to test your clarity of mind and objectivity through the sections of your business plan.

  • Come up with marketing strategy

In this section you have to address the legal, social, economical, and technological factors that would affect your business idea and how you will overcome them. You also need this section to tell the investors how you are going to utilize your available resources to minimize any damages. You will also need to specify the cost that will be incurred to invest in any of the technologies be it the internet or the telecommunication, you will need to specify all these details clearly in this plan. You can also use pie charts and infographics to explain how you will segment your marketing strategy.

  • Do a competitive analysis

You will need to describe all of the companies and products of your competitors, their strengths and weaknesses and how you can bank on this information to provide a competitive edge to your business. You will have to actually use your competitors products and services to find out loopholes that you can fill into your with your expertise and thorough research. You will talk about strategies and methods you will use to perform competitive analysis to be able to reach a consensus about your own business. Evaluate the products of your competitors and analyze their capabilities and potential for growth.

  • Write your development plan

Write in detail how you are going to develop the business from scratch and feed in all the facts and analysis. You can use a variety of tools to depict your plan step by step. You can also make more than one version of your developmental plan. One, the shorter version, another one a longer version. Segment the development of your product development and explain this in stages. Explain how you would perform a SWOT analysis at each stage.

  • Plan your operations

The operation plans would include information about the cost incurred for developing and maintaining your inventory, your production and distribution models, your manufacturing capabilities, info about facilities management, vendor details, all the organizational processes, etc. You must also specify how many products per week and per month you can manufacture and the cost that will incur for the same. A detailed explanation of the same must be given in the operational plan. Also, any equipment that must be used can go into the details of this plan. For instance, you have to explain how you will be carrying out the supply chain or the logistics of your company if you are a retailer or a manufacturing company. Whether you are an online or an offline business, every aspect of your operation must be clearly described.

  • Cover the financials

You can develop a small workbook of estimated cost that will incur per month on your operational and marketing needs. You will also need to specify the cost you will need to purchase marketing analysis tools and also perform a marketing research. At every stage, take special care of this while learning to start a business in India, whatever cost gets incurred, must be duly noted in these statements.