- 1 What all things your business plan should contain?
- 2 Attention: things to consider when start writing a business plan
- 3 What makes a good business plan?
- 3.0.1 1.It adapts to the business needs :
- 3.0.2 2. It is realistic. It can be implemented.
- 3.0.3 3. It is specific. You can track the results against the plan.
- 3.0.4 4. Clearly define implementation responsibilities
- 3.0.5 5. Clearly identify the assumptions
- 3.0.6 6. It communicates to people who have to execute it
- 3.0.7 7. Makes people commit
- 3.0.8 8. It is kept alive through a monitoring and planning process
- 4 Meaningful summary and planning framework for its start.
What all things your business plan should contain?
- Executive summary
- Vision & mission statement
- Business Objective
- Business Model
- Critical success factor
- Industry Analysis
- SWOT Analysis
- Marketing plan
- Sales Strategies
- Financial projections/ break even
- Exit plan
Attention: things to consider when start writing a business plan
Clarity: The first and most important thing that people often lose is the ability to present their business idea clearly. Business ideas can involve complex technologies and new innovations that can be difficult for people from different backgrounds to understand. The beauty lies in presenting it in a way that is easy for everyone to understand.
Viability: The next important thing, regardless of your audience, is the technical feasibility and economic viability of your project. As the saying goes, it’s about money. Everyone seems to be interested in earning money quickly and, therefore, should be more convincing if your project involves a longer gestation period.
Early traction or prototype (most importantly): the first thing investors see now is whether there is any demand for their offer, if they have achieved any early traction or if the product has been validated through a prototype.
Team quality: the type of people on board your project and your background are more important for investors that you would like to believe. Their previous collective experience, skills, vision and other things that quality people bring not only give credibility to any project, but also assure investors that their money will be in good hands.
Duration of the project plan: it is recommended to avoid large and fat templates that the CA or other business plan experts can obtain for you. The ideal length of a business plan is 10 to 20 pages, depending on your project and the audience of your plan.
Content: all other things, such as problems, solutions, your value proposition, patent or intellectual property, customer segments, business model, finance, etc.
Backed by good research and metrics: it becomes more crucial when you are putting your own money into your project. Invest in a good business plan as your business deserve.
When you have a great idea in mind to start a business, you always need a business plan. But you always need a commitment to what you write in your plan that can be executable in certain scenarios; I say it based on the following quote:
Planning is not just about setting goals, but about setting realistic goals.
I would suggest two different ways of writing your business plan:
- Detailed business plan
- Standard business plan
In order not to go first with a detailed business plan, it would be based on questions, you should answer those questions and your business plan will be ready .
What makes a good business plan?
1.It adapts to the business needs :
Best business plans are about managing: starting and growing a company. A plan that could be excellent for selling the company could be bad to support a loan application or to run a business.
So, point one, what makes a good business plan, is that it fits the needs of the business. Does it reach the commercial objective? And it is also possible to have a well written, well researched and well presented business plan that is useless.
2. It is realistic. It can be implemented.
The second measure of good or bad in a business plan is realistic. The plan that requires millions of dollars of investment but does not have an administrative team that can obtain that investment is not a good plan. A plan that ignores a systematic flaw is not a good plan.
3. It is specific. You can track the results against the plan.
Each business plan must include tasks, deadlines, dates, forecasts, budgets and metrics. Is measurable
Ask yourself, while evaluating a business plan: how will we know later if we follow the plan? How will we track the actual results and compare them with the plan? How will we know if we are in plan or not?
4. Clearly define implementation responsibilities
You should be able to identify a single person who will be responsible for each important task and function. A task that does not have an owner is not likely to be implemented. You can go through a business plan and see if you can recognize a specific person responsible for the implementation at any time.
5. Clearly identify the assumptions
This is very important because business plans are mostly wrong. They make them human, who guess the future, and humans guess badly. Therefore, business plans should clearly show the assumptions in advance because the modified assumptions should lead to revised plans. Identify the assumptions and keep them visible during the next planning process.
6. It communicates to people who have to execute it
Then a good plan is communicated. Above, where I suggest that the qualities of writing and editing are not essential for all plans, and I refer to cryptic points that only the team understands: I keep that here. If only the team understands it, it can still be a good plan; but it has to be communicated to that team.
7. Makes people commit
This is also about the process surrounding the plan, rather than the plan itself.
8. It is kept alive through a monitoring and planning process
A process of regular review and correction of the course is needed.
Meaningful summary and planning framework for its start.
At least it will provide a sufficient planning framework so you can take it to an experienced entrepreneur or a successful business person to get advice on how to take the next step. On an A4 page, this matrix allows you to turn your vision into a document that helps others participate and provide comments and comments on your concept and model. This feedback will undoubtedly lead to more planning and testing.
- The idea – How is your idea unique in the market?
- Subjective margins – What “subjective margins” are available? See subjective margins
- The test process – How will you test the product prototypes and what intellectual property could you insure?
- Product costs and sales price – What are the product costs and what are the anticipated sales prices? What gross profit margins can be expected?
- The product launch plan – What products are you going to sell at launch to ensure market acceptance?
- The products growth plan – What innovative products could you introduce in the growth phase with high margins?
- Exploitation of the product line: how long will it take to fully exploit and develop the line or assortment of initial products?
- The niche situation and the target market – What niche market, situation or problem does your idea seek to solve?
- The value proposition – What value does your solution have for that target market? How do they benefit them?
- Your customer lists – How many potential customer contacts you already have?
- Your market intelligence – What were the results of the prototype tests? What is the growth potential of this market?
- The beachhead strategy – What channels will you use to enter the market? See Beachhead strategies
- Market expansion options – What additional markets could you move into this growth phase?
- Market perspective – What is the outlook for this niche market and when is it likely to peak?
- Distribution plans – What commercial structure will you use in the launch in terms of legal structure, management and joint venture / partnerships?
- Unique controllable resources and unfair advantage – What access do you have to unique resources that your competitors do not have?
- Profit plans and potential – What is the potential for short and long term profits of this idea?
- The business model – What is your business model in terms of monetization of the idea and how will it finance it?
- Balance analysis and financing – When will the business come out in terms of units, monthly sales and terms?
- Commercial scalability: how will you scale your business so that costs do not increase in proportion to the increase in sales?
- Exit strategy – How do you plan to exit the business?
- Personal adjustment of the business concept – Why is this business idea so suitable for you personally? What “meaning for life….” does it fulfill…?
- Your preparation and personal experience – How have you prepared or positioned yourself for this idea?
- Your personal networks – What personal networks do you have to help generate momentum and demand for this product?
- The activation point – What was the activation point for the launch and why is it so right to launch this idea now?
- Level of commitment – What is your commitment to this company and how will it impact your life?
- Management transition: how will you handle the change of transition from an entrepreneurial company to a company that requires management?
- Personal objectives – What time is most appropriate for a departure from this business?
Note: here is a model worked for a pre-packaged sandwich shop / cafeteria that I opened with my brother a few years ago. It can give you an idea of how this planning matrix could be used as a precursor to get to know and discuss your vision with an experienced entrepreneur or a business person.
How useful is a business plan?
A business plan forces you to think realistically, objectively and without emotions about your business. The following list of reasons why a company needs a business plan.
- Map of the future
- Support growth and secure financing.
- Develop and communicate a course of action.
- Help manage cash flow
- Support a strategic exit
What are some practical tips for a great business plan…2019?
Think of it as a WAR (read war and organization book theories) Align your global culture / strategy and brand. It will help you understand your own hard and soft power, as well as its added value.
- The strategy is your long-term objective (brand / finance, etc.)
- Get ready, get ready and get ready! Plan all your operations (with sales marketing, etc.)
- Tactics are short objectives (marketing, growth piracy, etc.)
Be a customer and employee FOCUS. Employees are also an asset and so are you. Because you do that ? for whom? Do they really need your product? services?