Basic 6 Steps On How To Write A Business Plan.

Now that you have decided to own a business, it is important you make out time to create a business plan. This business plan will guide you on funding, organizing and planning your business.

The first step to writing a business plan is,

Be ready to do a research and put in work in knowing what exactly you will need.

1. Executive Summary.

Your executive summary will set the tone for your entire business plan. It should serve as a concise overview. If you write this section first, be sure to review it again when you are finished, to be sure that it offers an accurate description of your business as you envision it. The summary should be short and to the point; not drawn out or rambling. It should include things like your business’ name and location, a mission statement, and the products and or services you plan to offer. It should also clearly state the purpose of your business plan. Is it to outline your business strategy; or is it a plan you hope to send to potential investors?.

2. Business Description

This section should be a detailed overview of your business. It should start with a brief history of your business and what needs you plan for it to meet. It also should include information about its legal structure. Are you operating as an LLC, a corporation, partnership , or a sole proprietor? It should also include summaries of your products, services, customers, vendors, growth plans and goals, financial projections, and long-term business goals.

3. Products and Services

It’s in this section that you should lay out in detail your plans for the products and services that you plan to offer. Your language should be clear and concise. You should include information about your pricing structure, suppliers, and the revenue that you plan to generate. It’s okay to be opinionated to an extent. Include the benefits of your products or services, as well as why your offerings are better than the competitions. It’s also important to include any patent, copyright, or trademark information here. If you have plans for future expansion, including new products or services, include that in this section as well.

4. Marketing Strategies

This section will most likely require a large amount of research. If written well, it will demonstrate your knowledge of the market and how you plan to achieve success within it. It will include the demographics of your target market  as well as specifics about your industry. Here, you will evaluate your competitors’ strengths and weaknesses as well as devise a marketing strategy of your own. Include information on both your planned and historical marketing efforts.

5. Design and Development Plan

This is perhaps the meat of your plan. This is where you should go into detail about your sales strategy. How do you plan to reach your target customers? How will you penetrate the market? The design and development section should outline exactly how you plan to operate your business throughout the entire cycle. It should include information on acquiring supplies and products, manufacturing, sales, delivery, and so forth. For a small business, this section can also include information on employees and management structure. If you are planning on hiring a team, this section should outline the organizational structure and responsibilities of the team.

6. Financial Factors

It is a good idea to solicit help from a certified accountant when preparing the financial section of your business plan. It should be one of your last steps after you’ve reviewed the market analysis and outlined your business’ overall goals. The numbers here should back up everything else that you’ve included in previous sections. It should include projections of profit and loss, cash flow, and balance sheet.