Every day, an ambitious entrepreneur launches a new business. But did you know that many startup founders do not adopt a business plan?
Well, if you are also launching your own startup or company, creating a business plan is the first advice to start with in the new venture.
Simply diving in and discovering things as you go is NOT a good idea!
No matter what your business sells, writing a business plan is a crucial step. According to this searchPeople who create and follow a business plan have twice as many opportunities for success as those who don't.
So how to create a business plan for your SME? Here are some tips that will simplify this process for you.
O executive summary This is an advanced overview of the document that ranks first in the business plan but needs to be written last.
This brief section is able to make a significant difference to your business plan as it provides an overview of your SME, its vision and future goals. The executive summary should provide readers with an overview of the business plan.
Along with the company's vision and goals, you can also describe the team, its products and services, and the mission statement.
Also, if you are looking for financiers, be sure to provide information about your business finances and growth.
This is where you introduce your business and explain to readers why it fits perfectly with today's industry trends. Provide a brief history of your SME and what influenced you to create it.
Include details about the company's location, staff, and competitive advantages. Mentioning how you intend to achieve long-term goals will also have a positive impact on readers.
Analyze the market around your business. In addition to the details of the size of the market in question, there should be a thorough analysis of your product and target audience demand. Also try to include graphs and tables for estimating volumes and units of product demand.
Be sure to answer questions like:
- Who are the competitors?
- What are the main trends?
- What are your potential customers looking for?
- How can you meet your customer's needs?
In addition to evaluating your products against your competitors, this review will also shed light on how not to fail your rivals.
A business plan is incomplete without a description of the legal structure of your business and key management functions. Be sure to mention the legal form your company will take, such as LTDA, individual company, simple partnership or joint stock company, etc.
Also, let your customers know who is on the team, how the company is structured, and who runs it. Include the ownership percentage of each owner and the size of it in the company.
Also, if you're looking for funding, include the resumes of key team members and explain how your experience can help the business grow. This section is considered a bit longer, so we recommend splitting it into subsections such as management team, human resources, ownership structure, and external resources and services.
In addition, the best CRM Small Business Relationships (Customer Relationship Management) can also help you manage your organization's interaction with potential customers.
Products or services
In this section, you need to define products and services along with their life cycle. Be sure to include why customers might want your products and what makes them unique.
You can also share your intellectual property plans, such as filing patents or copyrights. The Google Local Business Listing (known as Google Local Business Card) can provide users with all relevant information about your business.
Sales and Marketing
Instead of including a comprehensive marketing plan For small businesses, simply add a description of how you intend to attract and retain customers.
Defining your marketing and sales strategies in basic terms will serve as a reliable reference point. In addition to highlighting your business strengths, focus on what sets your business apart from the competition.
If you are seeking external funding or investors, you will need to outline your funding request in this section. Clearly explain how much funding your business needs and what the resources will be for.
Also, be sure to mention whether you want equity or third party equity and include a description of your future strategic financial plans, such as selling the company or paying off debt.
O financial plan It is undoubtedly the most important section of the business plan. Here you need to prove to investors that your business will be a financial success. Provide graphs of projected profits, cash flow, capital expenditures, etc. for the next five years. You can even prepare quarterly or monthly projection reports for the first year of operation.
Include here background material that can strengthen your arguments. You can add photos of your products, team resumes, important legal documents, and anything that creates the image of a solid and stable business.
It is not always possible to create the perfect business plan on the first try. But by following the steps above, you are likely to get a good structure for it. Be sure to use simple and straightforward language in your business plan. Last but not least, research thoroughly and get to know your audience and competitors before you start preparing your business plan.