We all need a business plan to work. As an entrepreneur, firm, or company, it is necessary to have a business plan that will guide you through every stage of your business. It is also vital to run, grow, and manage your business as you develop. With this, you are able to know the key aspects that can make your business thrive well and overcome challenges. This article enlightens you on how to create a business plan.
WHAT IS A BUSINESS PLAN?
A business plan is a document that guides and manages your business. It contains information like what you sell, how to sell, structure of business, funds you need and so on.
CATEGORIES OF BUSINESS PLAN
There are two categories of business plan.
- Traditional business plan
- Lean startup business plan
TRADITIONAL BUSINESS PLAN
This type of business plan is usually very detailed. It has a standard structure and is very common among business owners.
LEAN STARTUP BUSINESS PLAN
This type of business plan contains less details. Although it has a standard structure, it is not as detailed as the traditional type as it only contains key elements. Most times, it can be written quickly as it usually contains one page.
STEP BY STEP PROCEDURE
Here, the overview of the company is made known. You get to discuss the outlook of your company. Most times, it contains two pages. It contains information such as what the company does, the vision of the company, the type of product or services you sell or render, who you are selling to, experience or background of the owner, and financial projections. In this section, you need to be able to project what your company should be doing in the future and what motivates you. Without it, your company may suffer from stunted growth.
Here, you shed light on your aims and objectives. These aims and objectives are what guide your company towards achieving its purposes. You are also to measure your progress in terms of long and short terms. You also have to let people know you as well as your team. By doing this, you get to sell the features and benefits of your company.
PRODUCTS OR SERVICES
Your products or services are what define your business. You have to make known what distinguishes it from others. That way, you get to have an edge in the marketplace. The product and details need to be discussed extensively. This is because you sell the benefits of your business. You have to let them know the cost per piece or the overall cost. You also have to let us know if it will attract extra cost in terms of transportation or delivery. You also need to let the buyers know how they will pay. Is it cash or through other means?
Here, you are to know the outlook of your industry. Do your research well and know how others are thriving. Then, you can start advertising your products. First, you need to identify your customers. Who they are and how they will receive your product. Then, know your competitors. Make your advantages known to other people. You also need to let them know what separates your business from others. Let them identify your niche. Also, know the amount you will spend on advertisement through platforms like TV, radio, newspaper and so on. You can also create brand awareness by letting people know your logo, slogan, social media handle and so on.
Your mode of operation needs to be determined. Your location should be known and logistics should be created. Transportation is also necessary to know how your goods will be moved. Also, you should know if your business should be legalized or registered under the law. You have to know if you are going to obtain certain documents to make you work effectively. Moreover, you should know your providers and how stocks will be supplied to make work efficient. Also, you are to have a proper place to store your goods. Your place of storage is crucial as it has to be safe and secured.
Having you plan your finances is highly essential. Without funds, your business will move at a slow pace. You need to know what you want to sell and the amount you have at hand. Also, measure your profit and loss for a year through graphs or numbers. This way, you will be able to keep track of what you sell. Examine your cash flow and ensure you keep track of all your financial activities.
Creating a business plan is not really difficult to do. Ensure you keep track of the aforementioned and pay close attention to them. That way, you are able to make your business successful.