Did you know that each year over 627,000 new businesses open their doors to the public?
If you have an excellent business idea that you want to get off the ground, the first step is to create a business plan. Although it might seem like creating a business plan is impossible, this guide can hell change your mind.
What is a business plan? Read on to learn what a business plan is how to create one.
Create a Simple Plan to Get Started
Many people would rather get to work on their business than create a business plan. While business plans can be quite a time consuming, they make an excellent outline for the business.
If you’re not an expert on creating business plans, then you can start by creating a simple outline of bullet points and go on from there or simply hire some professional business plan writers. But it will cost your money so, learn how to make a business plan for yourself.
The initial outline doesn’t have to be longer than a page but has to include fundamental information for you to build on.
On the first page of your business plan, you should include a statement proposition, market need, target market, competition, solutions, marketing and sales strategy, budget, and milestones.
Who Will Look At Your Business Plan?
When creating a business plan, you have to ask yourself who is going to read it and who are you trying to convince?
Chances are you might need to secure funding via a bank or lender, so you need a solid business plan to convince them why your business is a significant investment. Lenders will want to read a summary of your idea, but they will really look at the numbers.
Business plans are also essential if you’re trying to attract new investors or business partners. Serious investors will want to read a detailed description of what your business idea is all about.
One of the most important components of your business plan is the executive summary. Lenders and investors see hundreds of business plans pass through their desks, so the executive summary needs to make a strong impression.
The executive summary should be one or two pages long and offer a description of the product or service, key objectives, growth potential, and funding requirements.
Once you’ve written the summary, you should go into detail on how you plan to execute the plan you outlined.
In the execution section, you should discuss your sales and marketing strategy, operations, and how you plan to measure milestones.
In the company section, you should talk about the structure of your company. Go into detail about the location, facilities, and staff who will be working at your company.
If you plan to hire skilled workers, you should mention their qualifications and how they will add value to the business.
The financial plan section is one of the most important ones as it will make or break your deal with a lender.
Make sure you include a financial forecast over the first 12 months, at least. You should also include a list of costs, business expenses, asset purchases, sales, and such.
If your business requires funding, you should also outline how much you will need to get your business off the ground.
What Is a Business Plan? Now You Have a Better Idea
What is a business plan? After reading this article, you should now have a better idea of how to get started with a business plan.
To create a business plan, you should start by creating an executive summary, explain how you plan to execute it, detail what your company is all about, and outline a financial plan.
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