Content

• Steps
• Advice

A business plan is a comprehensive document showing what your business is doing, where it is headed, and how to get there. A business plan uses specific terms, outlining the company's financial goals and how the business positions itself to be able to achieve those goals in the current market context. At the same time, it is also an indispensable capital attraction tool. This article will help you step-by-step in making a business plan with the instructions below.

Steps

Part 1 of 3: Prepare to write a business plan

1. 

   Determine the type of plan used. Although the same goals are described in business goals and structures, market analysis and cash flow prediction, business plans are classified into three different categories with three main groups.
   • The mini plan. This is a shorter plan (only about 10 pages or less) and is helpful in identifying a potential interest in your business, digging deeper into your underlying idea or starting point. detailed plan. It is a great starting point.
   • Action plan. This can be considered the full version of the mini plan and its main goal is to accurately outline how the business should be shaped and run without emphasis on looks. Business owners will often refer to this type of plan as the business progresses toward its goals.
   • Presentation plan. This plan is aimed at those who do not own and operate the business itself. That could be the bank or potential investors. It is basically a well-crafted action plan with a smooth, impressive presentation with the right business terminology and language. While the action plan is for the owner, the presentation should be written to the investor, the banker, and the general public.

2. 

   
   
   Understand the basic structure of the business plan. Whether you decide to start with a mini plan or a comprehensive action plan, it is very important to understand the basic elements that make up a business plan.
   • The business idea is the first generalization element. Here, we need to focus on the description of the business, its market, its product and its organizational structure, and its management.
   • Market analysis is the second biggest factor. Businesses will operate in a certain market and therefore, understanding the demographic statistics, tastes, needs, and consumer behaviors of customers and competitors is indispensable.
   • Financial analysis is the third component.If a new business is established, this analysis will include cash flow forecast, consumer capital and the balance sheet. It will also forecast when the business will break even.

3. 

   
   
   Get the right help. Without a financial or business knowledge, enlist the help of an accountant in the financial analysis of the plan would not be a bad idea.
   • The above are the essential elements of a business plan. They are further subdivided into seven subdivisions, respectively: company description, market analysis, organizational structure and management, products and services, marketing and sales, investment proposals. , and will be covered in the next section of this article.
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Part 2 of 3: Write your business plan

1. 

   
   
   Correct text format. Format section titles with Roman numerals. For example: I, II, III, ...
   • Basically, the first part is called the "Executive Summary" (which gives an official look at your business) and while it is in the first place, it's usually written last because everything is needed. in the business plan to complete it.

2. 

   Start with business description. To do this, describe your business and identify the market needed for your product or service. Briefly describe your key customers and the directions to success.
   • Assuming it is a small coffee shop, the description would be: "An Trang is a small coffee shop, located in the city center with the goal of serving premium coffee cups and new cakes. Only one building from the local university, An Trang coffee shop aims to provide students, professors as well as office staff with a school environment. Practice, socialize or simply relax between lessons or meetings An Trang will be different thanks to its great space, convenient location, quality products and excellent customer service. ".

3. 

   
   
   Write market analysis. The goal of this section is to explore and demonstrate knowledge of the market in which your business will be run.
   • Include information about your target market. You should be able to answer questions like: What is your target market? What are their needs and tastes? Age and place of residence?
   • Don't forget competitive analysis, analytics panels provide research and information about direct competitors. List your main competitors, weaknesses and possible impact on your business. This section is extremely important as it outlines how the business can gain market share by exploiting competitor weaknesses.

4. 

   
   
   Describe your business's organizational structure and management. This section focuses on key personnel in the company, including details about the business owner and its management team.
   • Talk about the management team's expertise and decision-making. If the owner and management team have extensive industry experience or have had certain successes, highlight them.
   • Include an organization chart if available.

5. 

   
   
   Describe the product or service. What will you sell? What's the great thing about your product or service? How will customers benefit? How is it better than your competitor's product or service?
   • Answer any questions about your product life cycle. Do you have or are you planning to develop a prototype? Or are you applying for copyright? Make a note of the entire activity planned.
   • For example, if you're writing a plan to open a coffee shop, include a detailed menu that covers your entire product range. Before you go on the menu, you will have a brief summary, outlining why this menu makes the difference. For example: "Our coffee shop offers five different types of beverages, including coffee, tea, smoothies, soda and hot chocolate. This variety creates an edge. Competitive Store: We can offer a wide range of options that currently, "not the main competitor."

6. 

   Write your marketing and sales strategy. In this section, explain your direction to dominate the market, manage your development, communicate with customers, and deliver your product or service.
   • Obviously in sales strategy. Will you use sales reps, billboards, flyers, social media marketing or all of the above strategies?

7. 

   Proposal for capital contribution. If using your business plan to find capital, include it with an offer of capital. Explain how much money is needed to open and run your small business. Use a summary that is broken down into sections to show how startup capital will be used. Make a schedule for the capital contribution request.
   • Gather financial statements to support your capital contribution request. In some cases, to complete this step correctly, you may need to hire an accountant, lawyer, or another professional.
   • Financial statements usually include all financial data forecasted or available (if an established business), including financial statements, balance sheets, profit and loss statements. , budget spending forecast. Provide quarterly and monthly reports for the first year and annual reports for each subsequent year. These documents will be placed in the Appendix of the business plan.
   • Include a cash flow plan for at least 6 months or until sustained growth is reached and, if possible, discount pricing calculations.

8. 

   Write the administration summary. It will serve as an introductory introduction to your business plan, including your company's mission statement and giving the reader a glimpse of the product or service offered, the target market and the target of the business. Don't forget to put this in the first place, the opening of your document.
   • An active business should include information about company history. At what point was the company shaped? What are some notable growth standards?
   • The new company will focus more on industry analysis and capital contribution goals. Mention business structure, capital contribution requirement and whether ownership is shared with investors.
   • Existing and new businesses should highlight any major achievements, contracts, current or potential customers, and summarize future plans.
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Part 3 of 3: Completing the business plan

1. 

   Use Appendix. This is the final section with the goal of providing additional information. Potential investors may want to see this information before making a decision. The document placed here should support the claims mentioned in the rest of the plan.
   • The appendices should include financial statements, credit reports, business licenses, legal documents and contracts (to show investors forecasted revenue backed by solid business relationships. and biographies / CVs of key personnel.
   • Elaborate risk factors. It is advisable to give a clear outline of the risk factors affecting the business and the risk reduction plan. This will show the reader how well prepared your backup strategies are.

2. 

   Editing and editing. Re-read the business plan, check spelling and grammar a few times before closing.
   • Completely edit or rewrite content to ensure effectiveness from the reader's point of view. This is especially true of "presentation plans".
   • Read the plan out loud. Thanks to that, you can detect any wording that is not smooth and at the same time, the grammar error will become clearer and more conspicuous.
   • Make an extra copy and give it to a trusted friend or colleague, thanks for testing and suggestions. You can go online, print a Non-Disclosure Agreement (NDA), and ask them to sign it to protect your business idea.

3. 

   Create a cover page. Cover pages shape documents, give them an eye-catching, professional look, and help them stand out.
   • The cover page should include: The phrase "Business Plan" centered in a large bold font, the same name, company logo, contact information. Here, simplicity is the key.
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Advice

• In addition to this guide, you can read How to Create a Business Plan by the US Small Business Administration for further guidance.
• Useful Small Business resources are available from government, provincial, and city agencies. Check with your local Chamber of Commerce.