If you are about to create a startup or a business, you need a business plan. Before explaining how a business plan is made, let’s try to clarify what it is and what the objectives of this document are.
Here is a summary of everything we’ll cover in this business planning guide:
- What is the business plan, and what is it for
- How to Make a Business Plan: the structure to follow
- How to draw up a business plan: the various parts
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- Index
- Executive summary
- Company description
- Description of the product or service
- Market analysis
- The marketing plan
- The operational plan
- The organizational structure
- The financial plan
- The attachments
- Some examples of business plans
What is the business plan, and what is it for
A business plan (or business plan) is an articulated document divided into sections to describe a business project and explain how a business idea can be transformed – within a certain period and following certain methods – in a real business project.
The four fundamental functions of a business plan are as follows:
- Describe the business idea and its feasibility
- Set the strategy to follow for the success of the business
- Evaluate the performance and progress of the ongoing project
- Present the business idea to potential investors.
Who needs the business plan?
A business plan is useful not only in the case of the launch of a startup but is also useful for companies that have already started to tackle development projects (for example, to identify the advantages that can be obtained by carrying out a specific task) or in the case of esenyurt escort special operations such as acquisitions and mergers.
How to Make a Business Plan: the structure to follow
Let’s now tackle the more practical question, namely how to make a business plan:
- Create an index
- Write an effective executive summary
- Write the description of the company
- Write the description of the product or service
- Prepare the market analysis
- Outline your marketing strategy
- Create the operational plan
- Explain the organizational structure
- Discuss the financial plan
- Prepare the attachments
Each of these points, which we will elaborate on below, will represent a different section of your business plan.
Let’s proceed!
Read also: Lean Canvas, the business plan for a lean startup.
How to draw up a business plan: the various parts
Before explaining how to draw up a business plan, you must remember that being an important document both internally and externally (for presentation to possible lenders), it must be written in a clear, streamlined, legible, complete, and transparent way. But, on the other hand, you don’t want to confuse and stun potential backers with a long-winded, confusing, and graphically ugly document, do you?
Let’s see how to make a business plan with all the trimmings!
1. Index
Each business plan opens with an index that lists the various sections in the document and the related pages to find them. It makes it easier to consult (a bit like the index you see at the beginning of this article!).
2. Executive summary
The executive summary is a sort of summary that briefly explains the business idea and the document’s key points.
To be able to write an effective executive summary, we recommend that you register it at the end when you have finished making the rest of the business plan. This way, you will have clear ideas.
3. Company description
In this section, you will have to describe the company giving information on its type, its history, its structure, in what sector it operates, what it offers, which offices it has, and what are its strengths compared to the competition (for example, the presence of highly experienced and qualified managerial figures, the fact of having an excellent location, of owning a patent, etc.). Also, describe the objectives to be achieved; remember that they must be realistic and achievable within a certain time frame.
In this section, he also explains who the entrepreneurial team is made up of.
4. Description of the product or service
Highlight:
- What distinguishes it from the product/service offered by other companies. If you have a patent, please specify it.
- What could be the future developments?
5. Market analysis
Carry out thorough market analysis and describe:
- How it is segmented
- Trends in the sector and the development of demand
- What are the regulations governing the market?
- What are your direct and indirect competitors, and how do they position themselves?
- What are the characteristics of the target customers, their consumption habits, lifestyle and preferences, purchasing capacity, and socio-demographic and geographical factors? In this field, it may be useful to create buyer personas.
6. The marketing plan
In this section of the business plan, you have to illustrate the strategy adopted to attract and retain customers and to position and import yourself into the market. In your marketing plan, you will need to show what the strategic choices are regarding:
- Selling price
- Communication and promotion of the product/service
- Distribution policies (chosen channels, marketing agreements, sales network).
7. The operational plan
Let’s explain how to make a business plan by talking about the section dedicated to the operational plan.
- How do you want to produce and develop the product, and what resources and processes are involved?
- How we intend to offer technical assistance to customers in the post-sales phase is an increasingly important aspect of customer satisfaction and loyalty.
8. The organizational structure
In this section, you will have to describe in more detail the profiles of the management team (educational qualifications, experience, professional qualifications) and define their role and function within the company. Also, establish the human resources management plan, which professional figures the project needs (skills and procedures) and what is the expected hiring plan.
9. The financial plan
This is the most numerical section of the business plan, which provides a realistic and detailed projection of the company’s economic and financial projections.
Here you will need to enter:
- The estimated income statement for at least three years, thus inserting the forecasts of all the costs (fixed and variable) that the company will have to face and the expected revenues, highlighting the financial result for the year.
- Cash flows expected financial outflows.
- The budget balance sheet for three years (source of capital and its use).
10. The annexes
A business plan concludes with a section dedicated to attachments that are useful for clarifying what has been said in the various areas and providing additional information.
Some examples of business plan attachments are:
- The management curriculum vitae
- Product data sheets
- The data on the market survey
- Any quotes from suppliers
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