A business plan is a written description of the future of your business and, more importantly, how you achieve it. It’s a document explaining what you’re going to do to make your business profitable and how you’re going to do it. It defines your business model as well as your strategies to make this business model work and, more importantly, bring profit.
Usually, when a business idea is created, you know what resources and opportunities you have at the beginning of your business and where you want to move through a certain period of time, usually 3 or 5 years. But how to achieve this goal? When to start? How to interest investors? Even how to start a business? Everything seems so simple when you have the right idea and concept of making money. So you will make your dreams come true and get enough money to do business for years to come.
Writing a business plan is building a map that will tell you where you will make money from your original business idea. In the basic structure, your business plan is a mixture of strategies and plans. It’s about finance, marketing, people and products. Consider this the backbone of your new business.
Why do I need it?
Search for investors.
Apply for a loan.
Determine the viability of your business idea.
To improve your current business.
To grow your current business.
All of these types have different accents and different structures.
What is a business plan?
It is a tool or document that describes a business opportunity or idea, a team, operational and marketing strategies, business risks, and the economic viability of your business. A well-written document will help you turn an idea into a viable business.
It can also be defined in a different context in the sense that a business plan becomes a fundamental tool in analyzing new business opportunities, a diversification plan, an internationalization project, acquiring a company or an external business unit, or even launching. a new product or service within the current company.
In short, both for the development or launch of a startup, and for the analysis of new commercial investments, the business plan becomes an important tool. So even if you have a well-established business, you still need a business plan to grow and improve that business.
The business plan is never complete and should be reviewed at least once a year from time to time, but especially when major changes are expected in the existing business. This means that each plan must adapt effectively and effectively to the changes so that the project can continue.
What is the business plan for?
Many entrepreneurs think that they need a business plan only when they are looking for investments or when the bank asks for it. However, if business planning is done correctly, the entrepreneur can conduct a comprehensive market study that will provide the information needed to develop the best business model that is both profitable and efficient.
In addition, the business plan will develop strategic actions for all functional areas that will enable them to achieve the goals of the new business.
Once a business plan has been drawn up, it will serve as an internal tool to evaluate the company’s management and deviations from the planned scenario. If necessary, propose adjustments to the agreed business model to get up-to-date information for day-to-day business management. This includes preparing for the changes and processes needed to rebuild the business.
So let’s delve deeper into the concept of business planning.
WHY business plan
Why do you need your business plan?
Why are you writing a plan now?
WHAT from the business plan
What is the purpose of developing a specific plan?
What period do you think it is possible to implement your projects?
What is your business model?
What is your value proposition?
What are your products or services?
What positioning do you plan to develop to be competitive?
What are your criteria for success?
Which markets do you want to enter?
What percentage of the market do you think you will reach?
What margin do you think is possible?
What income do you expect to receive?
What are the costs of the expansion?
What are the costs of attracting new customers?
What do you want to do with your business?
What strategies you want to use – financial, marketing and planning.
THE WORLD of Commercial Activities
Where are your products sold? Shop, Office, Website, Social Networking, Roadside, Party Planning,
Where do you live? Local, central, virtual, etc.
Where are your products made?
Where are your distribution channels?
Where are they for sale?
Where is your market?
Where should your employees be?
WHEN your business planning
When should you start a new activity?
When do they end?
When should your investor invest?
When will your investor return his money?
When will you have enough staff to implement your new changes?
When are your products and services available?
When do you need to upgrade and/or improve your products?
When is the best time to attract new customers?
Who do you present your plan to?
The bank provides a loan and they usually charge a fee for real estate.
The investor will join your company as a shareholder.
A corner investor to become a shareholder and also participate in the management of your business.
Management team so they know what is expected of them.
Suppliers offering credit.
The manager hires employees so they can join your business.
Believe it or not, the entrepreneur must also apply regularly.
As you can see, the business plan involves a lot of W – the more W, the more W, why should you write a business plan, and the answer is because it’s a great business tool.