How to Write a Great Business Plan

Are you an aspiring entrepreneur? Do you want to learn how to write a great business plan so as to attract investors to get your business funded and be successful in your business? Do you want to submit a business plan to investors to fund your business but do not know how to write it? If your answer is yes, then bother no more because in this post I am going to guide you on how to write a great business plan that you can use to grow and sustain your business.

In the world of business, every seasoned investor knows that a well detailed financial projection for a new company is an act of imagination and for a business to thrive it must have a well written business plan. So therefore, a great business plan is one that focuses on a series of questions. These questions relate to the four factors critical to the success of every new business. The four factors include the people, the opportunity, the context, and the possibilities for both risk and reward.

A great business planĀ is a living and breathing blueprint for your business, which can help you navigate and manage your company while also helping potential entrepreneurs, investors, partners and corporations to understand your business strategy and also give you chance to be successful in your business. A business plan is never quite finished because you are always revising it, reviewing it, and building upon it.

Your business future is dependent on your business plan. You have to have a business plan so as to head to the right direction without losing sight of your long-term destination. When your business plan is finished, your company is finished. In this post I am going to help you to understand why you should write a business plan, stipulate components to include in a business plan, and how to use the plan internally to meet your business goals and objectives.

As for newbie who are just starting out in business, before venturing into any business, the first step you need to take is to write a comprehensive business plan, which will help you describe your product or service, detail out your marketing strategy, and lay out your sales and operational forecasts, including the cash-flow projection which is very important, so as to keep your business on track and make profits.

Check this out How to Write a Business Plan and learn from experts on how to write a comprehensive business plan from the scratch which you can use to attract investors and get your business funded instantly.

If an outside investment or loans are sought by you, whether from investors, venture capitalists or banks, a business plan is very essential. Your business plan is one of the first documents that a loan officer, banker or an investor will want to see before agreeing to fund your business or give you loan to start up your business.

In addition to that, an investor or venture capital will not only see and read the plan before providing funding, but will try to find fault in your business plan and query you about things you should have addressed in your business plan. So to win the favor of a potential investor you must learn how to write a great business plan.

For the purpose of convincing an investor to finance your business, you may add certain sections to your business plan, which include background and historical information about the business and a description of the management team leading the organization.

An investor is a business expert and would not want to waste his money. So you need to show investors how they are going to make money and get their return of investment (ROI).

However, if you are developing a business plan involving a business loan, then your lenders are going to want something slightly different. They will want to see a section in your business plan detailing collateral or assets you are willing to pledge against the loan incase you are not able to pay back the loan. Some lenders will also ask you for interest, so all that should be stipulated in your business plan. Collateral may include your car, house or any other property that can be equal to the loans you which to obtain. A business plan may also be required if you plan to do business overseas.

A business plan is not only for start-ups or businesses seeking investment or loans, rather a business plan can also be used by any business no matter what industry, location, or size of that business. A business plan can be a vital tool for running a business, setting out sales forecasts, marketing plans, and cash flow statements that can be revisited and updated every month.

Your business plan should look professional, but the potential lender or investor needs to know that it was written by you. A business plan will be the best indicator that can be used to judge your potential for success in business.

However, your business plan should not be more than 30 to 40 pages in length, excluding supporting documents. It is highly recommended to start a business plan with a cover sheet stating the principles of the business, the name of the business, and the address of the business.

Check this out How to Write a Business Plan and learn from experts on how to write a comprehensive business plan from the scratch which you can use to attract investors and get your business funded instantly.

I have taken out time to stipulate the importance of writing a business plan, so finally I am going to state the procedure or process of writing a business plan which you must follow and adhere strictly to. Below is a structure of a business plan.

Executive Summary

The first section in a business plan is the Executive Summary. This is the abstract of your business plan, a summary of everything you will say about your business. In this section you are expected to spell out the content and goals of your plan. This section is very important if you are seeking outside funding as it introduces possible investors to your business. Be sure to include background about your company, the market opportunity, your capital requirements, a mission statement, an overview of management, competitors, your business’s competitive advantages, and a summary of your financial projections over the next five years.

Company Overview

The second section in a business plan is the Company Overview. The company overview is designed to provide more information about your business, why and when it was formed, its mission, business model, strategy, and any existing strategic relationships. It is also advisable to include this section as part of an organizational plan that also covers administrative issues, such as intellectual property you may own, costs associated with your location, the legal structure of your company, management, personnel, and how you are addressing accounting, legal, insurance and security matters.

Business Offering

The third section in a business plan is the Business Offering. Here is where you talk about why you are in business and what you are selling, whether it is products or services. If you sell products state whether you are the manufacturer, distributor or retailer. And if you are the manufacturer of the product, talk about your manufacturing process, availability of materials, how you handle inventory and fulfillment, etc. If you provide services, describe those services. Make sure to address any new product lines or service lines that you expect to enter into in the future.

Marketing Plan and Analysis

The fourth section in a business plan is the Marketing Plan and Analysis. In this section, you are expected to spell out your marketing strategy, addressing details of your market analysis, sales, customer service, advertising, and public relations. Many businesses use this space to showcase their vision of why their business will be successful, backing that up with market research that identifies their target market and industry and customer trends. But sometimes small and medium scale businesses don’t have the deep pockets to hire outside firms to undertake exhaustive market research for them.

Strategy and Implementation

The fifth section in a business plan is the Strategy and Implementation. Every business plan needs details. This section is where many should go and search for strategy and implementation you will use in your business to beat competitors. Here, you have to state, when you will be able to do your first release and how many visitors you are going to get on the web, and so on. Make sure to include the details in a table called Milestones. That table should lay out the dates and deadlines. This is also a section in which to include your sales forecasts.

Management Team

The sixth section in a business plan is the Management Team. If you are writing the business plan for investors or bankers, you will want to explain the background of your company executives and managers and explain how that will help you meet your business goals and objectives. If you are trying to attract investors to your business, it is very important to include who these executives and managers are and what their experience is. You are also required to explain how managers are going to grow the staff of the business in the future to meet business objectives and goals.

Financial Projection

The seventh and final section in a business plan is the Financial Projection. In the financial projection, you are expected to provide the quantitative interpretation of everything you stated in your organizational and marketing sections. You are also advised not to write the financial section until those other sections are complete. This is where you include your projected profit and loss statements, your balance sheet, and your cash flow statements for the next five years. You may also include supporting documents to back up statements or decisions you have made. These should be included in a separate section. These supplemental materials might include resumes of your managers, credit reports, copies of contracts and letters of reference from people who can attest that you are a reputable and reliable business person.

Check this out How to Write a Business Plan and learn from experts on how to write a comprehensive business plan from the scratch which you can use to attract investors and get your business funded instantly.

Wow guys we are done with the process on how to write a great business plan. Always remember that it is advisable to always visit your business plan once in a month to make corrections, and update them when necessary. With this information I sincerely believe you have learned how to write a great business plan.

If you have other procedure on how to write a great business plan so as to attract investors and get your business funded, your comments is highly appreciated. If you love this post please take few minutes and share it to your social media accounts.

Austine Ikeru
Follow Me

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.