Now that you’ve decided to start your own business, you’ll need to arrange your thoughts and write down your business plan. The business strategy is often overlooked by new business owners. That shouldn’t be the case. Having a business plan has numerous advantages for your company and for you as an entrepreneur.
Many times, great company concepts are formed but are missing a key component. A business plan might assist you to discover whether you’re missing something crucial like money, marketing, or supplies, for example. It’s difficult to know where to begin and what to include when writing a business plan.
We will walk you through the steps you need to take to get your business off the ground!
This is the first page of your company strategy. Consider it your elevator pitch. Include a mission statement, a succinct description of the products or services offered by your business, and a brief overview of your financial expansion plans.
Although your investors will read the executive summary first, it may be simpler to write it last. By doing this, you can highlight specific details as you write more in-depth parts.
The next section is your company description, which should include details like:
Your company description should also specify the legal form of your firm, such as a sole proprietorship, partnership, or corporation, as well as the percentage of ownership and level of involvement each owner has in the business.
The history of your firm and the current state of your industry should also be included. This prepares the reader to read about your objectives in the following section.
In a corporate strategy, an objective statement is third. Both your short-term and long-term objectives are made apparent in this section.
Use this section to explain why you need the funds, how they will help your business grow, and how you plan to achieve your growth goals. if you’re asking for a business loan or outside investment. The idea is to clearly explain the opportunity being offered and how the loan or investment would help your business expand.
For instance, if your firm is introducing a new product line, you may describe how the loan will assist your business in doing so and how much you need.
In this part, be clear about the products or services you offer or plan to offer.
You ought to incorporate the following
You can also talk about the trademarks and patents that are connected to your goods or services, either registered or pending.
Lenders and investors will want to know how your product is unique from the competition. In the section of your paper that analyses the market, list your competitors. Discuss your strengths and areas for improvement. Explain if you’re catering to a niche or underserved clientele.
Here, you can discuss your strategies for convincing clients to purchase your goods or services or for cultivating recurring business.
If your company is still young, you might not have much knowledge of its financials. Even if your business is already up and running, you should still include income or profit-and-loss statements, a balance sheet that lists your assets and liabilities, and a cash flow statement that shows how cash is brought into and out of the company.
You might also incorporate metrics like:
This is an excellent location to incorporate graphs and charts that help readers of your plan quickly comprehend the state of your company’s finances.
If you’re looking for funding or investors, this is an essential component of any business plan. It explains how your business will generate enough revenue to cover the loan or how you’ll give investors a fair return.
Here, you’ll give projections of your company’s monthly or quarterly revenues, costs, and profits for a minimum of three years, with the future figures presuming you’ve gotten a fresh loan.
Review your prior financial accounts thoroughly before generating estimates since accuracy is crucial. Your goals should be ambitious yet still reachable.
Include any supplementary materials or information that you couldn’t fit elsewhere, such as important employees’ resumes, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories. If this section’s appendix is lengthy, you might want to consider starting it with a table of contents.
Resources and advice for business plans
To make your business plan stand out, consider the following advice:
Avoid over-optimism: If you’re requesting a business loan from a local bank, the loan officer probably has some familiarity with your industry. Giving irrational sales projections can reduce the likelihood of your loan being approved.
Proofread: Grammar, punctuation, and spelling issues can pop off the page and turn off lenders and potential investors by drawing their attention away from your business and onto the faults you committed. You could choose to employ a business plan writer, copy editor, or proofreader if writing and editing aren’t your strong suit.
Check out the trajectory of building a successful business using India’s first-ever Startup Ecosystem.
Wait! Are you yourself an entrepreneur? Do get in touch with TheCodeWork then. We work with them to assist early-stage and growing startups in putting their ideas into practice.
The one-stop solution to all your startup problems. From tech team to funding, to brand building and even legal network, we have it all covered for you!