There is no place for guesswork in today’s fiercely competitive market. Even if you happen to be a highly skillful and experienced person, proper planning is direly needed to guide your progression, combat the competition and help avoid the challenges on the road ahead.
If you don’t walk on the right path, it would be difficult to reach your desired destination. Likewise, if you don’t plan. it won’t be easy to reach your desired success in your business. So, you better plan things properly before launching your new business.
A business plan is designed to help you determine a course of action to be followed by you in the future so that you enjoy smooth business operations and progression.
A business plan isn’t merely a tool for attracting investors for funding your business or securing a loan from a bank. A business plan is worth your actions when it helps you find answers to the following important questions:
- What to do?
- How to do?
- When to do?
Pay your attention to learn a comprehensive format for writing a business plan for your small business. Each component of a typical business plan has been neatly covered right below.
1. Cover page
The face is the index of the mind. Likewise, a cover page is the index of a business plan. The cover page is the first important component of a typical business plan. Some like to call it a first impression since it is the first page investors or bankers look on when you approach them for funding.
The more beautifully and neatly you write a cover page, the more interested your prospective investor gets in the reading of the remaining portion of your business plan.
What should you highlight on a cover page is your company’s name, logo, title and date, address, contact details, etc
2. Executive summary
An executive summary is the foundational and of course the most important component of a typical business plan. It conveys clearly what you want your investors to read? In brief, while you begin to write an executive summary, you will have to introduce:
- Your business
- Your product or service
2. Business description
The business description is the second most important component of your business plan. In this component, you got to outline your:
- Legal structure
- Organizational size
- Business location
3. Competitor analysis
The third section of a typical business plan is competitor analysis. You have to research and describe who is your close competitors or rivals? and what are their key strengths and weaknesses so that you are able to spot out possible threats and opportunities.
4. Market analysis
Market analysis is the fourth important part of your business plan. You need to describe your target market environment and you must prove that your product or service has substantial growth.
5. Marketing plan
The Marketing plan section explains the answer to how your business will get customers to buy products or services. In addition, you will need to explain your USP ( unique selling proposition ), pricing strategy, sales plan, and advertising strategy.
6. Operational plan
The operational plan component explains the answers to the following questions:
- How to get your products or services to your target market?
- Who is doing what? and what are their day to day activities?
- Which suppliers to be used?
- What are your labor requirements?
7. Management & financial plan
In the management plan section, you need to describe your management team, staff, and ownership structure while the financial plan component explains how investors can be attracted to fund your startup and moreover, it helps in determining the viability of your business as well. Thank you!