A business plan, like the logo created with Turbologo, is an integral part of any company. This document has a direct impact on your prospects and success. It will help you plan your future business and see if your idea has a chance of success. It allows you to identify your competitive advantages, weaknesses, and threats. An accurately prepared timeline also means you minimize the risk of making a mistake and respond more quickly to potential problems. What is a business plan, and why is it difficult to run a successful business without one?
What is a business plan?
A business plan is a plan for the creation and development of a future business. Its purpose is to help define the objectives and delineate the path of subsequent activities. Based on the business plan, the entrepreneur should make business decisions. Before starting a company, it is necessary to prepare even a basic business plan. Thanks to it, you can create a map of the needs of your future business.
Why do you need a business plan?
With a business plan, you can establish what your expectations are for your business (e.g., earning a certain level of income or hiring employees). You can identify where your competitive advantage lies, where the weaknesses in your business idea are, or what your vision is for the business. The business plan should also include:
- Information about the services or products you want to address to your future customers.
- Determine your customers’ expectations.
- Plan the process of promoting the business.
Also, don’t forget to plan your activities over time. Determine how much time you will need to raise capital, set up your business, or complete other formalities. The last key point of a basic business plan is to prepare a financial plan. It should include all planned expenses, plus a financial cushion to avoid the situation where all planned costs are calculated with no margin for error.
The business plan is also useful as a document, for example as an attachment to a loan or grant application. Some institutions also require this document. The business plan may also be necessary for those applying for funding to start a business.
Business plan – how to write one?
Preparing a business plan is not a one-time task that, once completed, can be put away in a drawer. It is a process of constant needs analysis, thanks to which an entrepreneur can increase his/her chances of success. As soon as circumstances or plans change, you should modify your existing ideas.
A sample business plan should be created based on many factors. However, it is advisable to develop your ideas on your own because a ready-made business plan may not be useful. If you are planning to start an online store, you will not need ready-made headings related to the expenses of maintaining a stationary branch. However, a sample business plan can be very helpful. Relying on the developed scheme and adapting it to your own needs will make your work easier.
What is important, however, is that not every point in the business plan will be easy to develop. For example, preparing a marketing strategy, if you don’t have the right knowledge and experience, is better left to professionals.
How to create a business plan?
Owning your own business is a huge challenge, so to facilitate your entry into the market, you need to have a plan ready.
- Start by defining what you want to sell or what services you want to offer. What will be the source of your income, why should customers choose your company and not your competitors, and how can you reach them?
- At the next stage, focus on who your customer will be. You should define your target and prepare your marketing strategy based on that.
- Next, look at the sales process. Where should customers buy your products or service, and how much will they cost? A sales plan is an important element for any business because it allows you to determine revenue.
- The next step is competitive analysis, which means knowing the strengths and weaknesses of the companies your business will be competing with. Knowing the market is crucial because it may turn out that someone else has come up with your unique idea and is implementing it successfully. Also consider who you need to work with, as your business often depends on suppliers and contractors.
When should a business plan be written?
Your business plan should be written before you set up your business. Ideally, you should start thinking about it as soon as you have an idea but no ideas on how to make it a reality. Don’t wait until you are required to have a business plan, such as when you apply for a business plan.
Conclusion
A business plan is a document that has a specific purpose. Who is the business plan for? Primarily for those who are thinking about starting their own business. It will allow you to assess the real potential for creating a well-functioning business. Any already established business should also have a business plan. A well-designed schedule of activities allows you to verify that you are achieving your goals and, above all, allows you to react more quickly if an unforeseen problem arises.
