Whether you’re planning to start a business or have an existing one, the first step is to create a business plan. Before writing down a simple business plan template, ensure you incorporate it with meetings, tasks, and a to-do list. Don't rush to create a small business plan because the best free business plan generator is tedious and cumbersome.
According to the recent QuickBooks survey, approximately 70 percent of business gurus recommend that small businesses should start by writing their business model and business plan before going into real business activities.
Some business gurus confessed they don’t have a small business plan, others said that they don’t think they’ll ever write the best title business plan. So, before we discuss how to write a business plan step-by-step, let’s cover some insights.
What is a small business plan?
A business plan is a roadmap for business development and growth. It describes what you’re offering, your business goals and objectives, and who you’re. In addition, it helps small businesses attract the attention of investors and financiers.
Remember, a business idea isn’t a business plan management. But a template business plan is the blueprint for any interested investors who want to invest and know more about your business.
Banking institutions and venture capitalists can’t invest their cash into small businesses or startups without an executive summary example business plan.
What is the importance of a simple business plan?
A business plan is an important tool that helps entrepreneurs analyze and determine whether their goals and objectives will be achieved in the long run. It also makes you focus on the business goals effectively. The good news is that you can write a business plan abstract sample wherever you’re;
· Experiencing some economic issues
· Looking for loans, funds, or investments
· Retaining, employing, and attacking talented and experienced personnel
Now, let's look at top tips for writing a good business plan
1. Create an executive summary
The executive summary example business plan is a short paragraph of detailed information about a prospective business. So, summarize every component you’ll need in your simple business plan. Typically, it’s an outlook of your business. Its goal is to focus on the value proposition. Below are elements you need to consider while preparing an executive summary for a business plan:
· Competing band
· Target customers
· Product or service
2. Compose your business description
To have a well-written business plan, check whether your business description includes objectives, a mission statement, and a history. A mission description statement describes why your business exists. Plus, it explains what you’re offering and the main task your business does. When writing your business plan summary example, ensure you include;
· Major milestones
· Founding date
· Product or services
· Employees number
· Board leadership role
On the other hand, business objectives are the key to every successful business globally. So, ensure these objectives are realistic, time-bound, measurable, and specific. Remember, if these goals aren’t perfectly outlined, many employees will find it difficult to work towards the central goal. Also, a poor objective won’t grab any potential investors.
3. Summarize market research
Next, analyze your potential customers and the actual size of your market. Plus, critical demographic information such as:
If your target market is questionable, that’s a red flag to any potential investor. For instance, your products focus on people with a huge amount to hire landscape architects, so, including everyone with a garden might not be a poor idea.
Similarly, apply it to market research in case you want to estimate its primary monetary value and size.
4. Conduct competitive analysis
This involves keenly looking at other business empires offering the same product or services you’re about to sell. Even though the entire process looks overwhelming, understanding each potential competitor’s tricks and tips is key to winning more. So, to rock over your competitors, ensure you answer business plan questions, like:
· How reliable is their customer support care?
· Where do they focus on advertisement?
· Where is their press coverage?
· What's their pricing and selling mechanism?
When you visit their website, check out their values statement, About Us page, or mission. Also, make sure to differentiate yourself from your potential competitors, when you're presenting your business plan summary example to a prospective investor.
That’s the critical part where investors point out something important you haven’t included. So, do research before presenting your business plan structure to investors. And if your ideas for a business plan are more lucrative, they'll ask you to describe how it’ll solve current customer issues. But if you’ve worst case scenario business plan that doesn’t define any potential competitors, check out other business firms that offer the same product.
Next, create a spreadsheet that displays several competitors. And don’t forget to include these potential competitors in your small business plan template.
5. Describe your brand
Now that you understand a little bit about a simple business plan template, it’s time to describe your production process, brand lifecycle, and how it'll benefit the local community. In addition, describe how your business will offer better products or services over your competitors. While elaborating on its benefits, be sure to mention:
· The practical and emotional payoff to your loyal customers
· Unique aspects
· Legal business rights
In the production sector, answer you:
· Deliver and supply products or services
· Quality assurance
· Inventory and bookkeeping
· Source raw components
· Design new and existing products or services
When describing the product life cycle process, feature aspects like:
· Future goals for development and research
· Down-sells, upsells, and cross-sells
· Time between sales
6. Describe your sales and marketing strategy
Marketing strategy plays a major role in business success by exploring new marketing avenues. To enact the move, consider elementary topics like:
· Existing customer segments
· Value proposition
· Ideal target markets
These topics help you establish a business growth strategy, boost your promotion and advertisement channels, attract new customers and maintain customer loyalty.
You can also use real business plan examples to enforce your business prowess and define the central aspect that distinguishes you from your potential competitors.
7. Compute your business financial reports
In most cases, when launching a business, it’s unlikely to have financial statements or financial data. And that is ok.
The general rule is to start preparing a financial and budget business plan for the business as soon as possible. However, if you've already established your business and seeking investors, it’s recommended you include:
· Balance sheets
· Income statements
· Cash flow statements
· Loss and profit statements
To make your financial plan in business plan worth, ensure it covers at least the previous three years. Also, provide accurate figures and avoid offering any loss or profit projection before navigating through previous statements for assurance.
Last but not least, ensure you link your sales, profit margins, and cost ideally. And don't forget to include the price of each service or product. Remember, underestimating costs can significantly reduce your business bonuses. So, be keen when creating a business plan or service cost.