When you start setting up a business, the first thing you should consider is a Business Plan. You must have a proper Business Plan to have a business bank account. Even venture capitalists, angel investors, and bankers will ask for a business plan if you are looking for investment.
A business plan is an important document aimed at a company’s external and internal audiences. For instance, a business plan is used to attract investment before a company has established a proven track record. It can also help secure lending from financial institutions.
Furthermore, a business plan can serve to keep a company’s executive team on the same page about strategic action items and on target for meeting established goals.
Although they’re especially useful for new businesses, every company should have a business plan. Ideally, the plan is reviewed and updated periodically to reflect goals that have been met or have changed. Sometimes, a new business plan is created for an established business that has decided to move in a new direction.
Why you need a business plan
Whether you’ve just started out or have been running your business for years, business planning can be the key to your success. Having a business plan:
Helps you to prioritize
It gives your business direction, defines your objectives, maps out how you’ll achieve your goals and helps you to manage possible bumps in the road.
Gives you control over your business
The planning process helps you learn about the different things that could affect your success. If you’re already in business, it helps you to step back and look at what’s working and what you can improve on.
Helps you seek finance
If you’re seeking finance for your business, you’ll need to show banks and investors why they should invest in your business.
Key Takeaways
- A business plan is a document describing a company’s core business activities and how it plans to achieve its goals.
- Startup companies use Business Plans to get off the ground and attract outside Investors.
- A Business Plan can also be used as an internal guide to keep an executive team focused on and working toward short- and long-term objectives.
- Businesses may create a lengthier traditional Business Plan or a shorter lean Startup Business Plan.
- Good Business Plans should include an executive summary and sections on products and services, marketing strategy and analysis, financial planning, and a budget.
How to write a Business Plan
The steps are below:
- To write a Business Plan click on the Business Plans menu on the sidebar.
- Click on the write Business Plan button on the top right corner.
- Fill out all the necessary fields.
- You must fill the mandatory fields.
- After saving the plan, you will find it on the Business Plans menu.
A well-considered and well-written Business Plan can be of enormous value to a company. While there are templates that you can use to write a Business Plan, try to avoid producing a generic result. The plan should include an overview and, if possible, details of the industry of which the business will be a part. It should explain how the business will distinguish itself from its competitors.
Start with the essential structure: an executive summary, company description, market analysis, product or service description, marketing strategy, financial projections, and appendix (which include documents and data that support the main sections).
Tip
While it’s a good idea to give as much detail as possible, it’s also important that a plan be concise to keep a reader’s attention until the end.
When you write your Business Plan, you don’t have to strictly follow a particular Business Plan outline or template. Use only those sections that make the most sense for your particular business and its needs.
