Have an idea of starting a business? That's great, especially if you think that it's exactly what you want and feel confident about. The next step after an idea is to create a business plan. That will be definitely helpful if you have a cool idea but to money to make the first steps into its implementation and you are looking for investors. You want to understand the prospects of the deal and examine the reasonableness and possible income from the business. Using a scheduling software for small business is also a great idea as their are some good apps available like ours.
What is a business plan? As written in many sources, it is a document that:
- describes all significant aspects of a future enterprise or project;
- analyzes all the problems and difficulties that you may face;
- determines how to solve the identified issues.
Once you form correctly business plan, it will clearly answer the question whether its worth to invest and start it or no and if it will bring revenues in the future. Note, that making a business plan is very responsible and volume process which requires an in-depth investigation and understanding of the niche. Below, ManageMart experts will share some tips on how to write a business plan by yourself.
The first vital thing to do
Research the position and development prospects of the future market. The business plan is usually written for the approximately 1-3 years ahead, therefore investigate the opportunities of the market about the product you want to sell or services to offer. Estimate the costs for the production of the desired market products. Compare them with the prices on the market and with the offers provided by competitors. Identify those indicators by which it will be possible to regulate the state of affairs.
Business plan structure
Such a document is not easy to write, and the structure is quite complicated. Moreover, the business plan should be easy to read and clear in understanding for any entrepreneur, financier, and banker, as well as potential partners. It should be extensive and consists of around 30-70 pages - no more. It is essential to provide dosed information. Follow the next structure:
- Abstract (up to 1 page) - a written proposal for senior management.
- Summary (1-3 pages) - essential information to get acquainted with the business plan. This part should contain the following data:
- The purpose of a business plan.
- For what purposes investments are needed.
- A brief description of the business and its target customer.
- The main differences from competitors.
- Key financial indicators.
Business plan (45-60) - for a detailed study of the project by investors and experts. This part of the document should be divided into the following sections:
- Goals and objectives of the idea
- Description of the product or service you want to contribute
- Analysis of the market, possible customers and competitors
- Marketing plan
- Production plan
- The team which includes leading managers, employees, and their salaries
- Sources and required resources as well as the terms when the funds will be returned.
- Financial plan and analysis of possible risks
- Detailed financial plan and outlook of potential sales,
- profit, and loss estimates