In starting a business, whether small or large, one of the first steps that you need to do is planning. It is like a draft of the things that you want to do and accomplish. Once you’ve come up with a business idea, you need to create a plan out of it. It is an exciting part of the whole building a business process as it is where you can draw all your ideas and have a look at it. Writing a business plan is also a way to build your concept in details and prove that it could actually work because admit it, not all business ideas are good. The following are the necessary steps you need to take in writing a business plan:
- Executive Summary
This should say what you want people to know about your company. The executive summary gives people a view of your business. Basically, this will let people know about the products and/or services that you will sell, the market, company profile and financial considerations.
- Company Description
This is a summary of what your company is about, your mission statement, and a short description of the industry. You should also talk about your products in here and what people could expect from your company. Also tell them where you will be located and how your products and services will meet people’s needs.
- Market Analysis and Strategies
Market strategies let you define your target market. It is important that you determine if your business has a place in the market. You need to know who your audience will be. You could do surveys and interviews to determine the probable success of your business. Also, by doing market analysis, you would be able to determine the correct strategies to use in order to be successful.
- Competitive Comparison
It is important that you know who your competitors are. You need to determine their strength and weaknesses and how they are or they are not successful. In that way you could determine your advantages over them and develop ways to overcome barriers that existing companies have faced.
- Operations & Management Plan
Basically, this section will show your business organization and management structure. This will show your management team and their responsibilities. You could write brief bio of each member and relevant experiences. The capital and expense requirements should be tackled here too.
- Marketing & Sales Plan
It is important that you know how you will sell your products and this is where you should discuss it. You need to be able to answer questions like: How can you penetrate your target market? How will you communicate with your consumers? What is your target sales per month/year?
- Financial Factors
Here is where you will outline your financial model. You need to be able to determine your start-up cost and financial projections. This part is important especially if you are pitching for investors so make sure you back this up with accurate information.