07 Oct Advice on How to Write a Business Plan
What is a business plan? A business plan is a description of a certain business in written form – it is a plan that explains the future of some organization, its goals and the means that will be used to achieve those goals. Business plans are very strategic in nature. It usually begins with where you start, when and with what abilities and resources. The second part revolves around where you plan to be in the next three to five years and what resources, capabilities, profits and assets you want to have at that time. The plan also needs to contain detailed information on how you plan to get there. Therefore, a business plan is crucial for success as much as hiring good employees. Every company, no matter how big or small, needs to have one in order to keep track of its performance without losing sight of its goals.
Set your goals and objectives
Close your eyes and think for a bit. Imagine your company three (or five) years from now. Where is your organization in the future? Will your business increase in size drastically, or stay more or less the same? Will you be the boss of a constantly growing organization? It is crucial that you get an answer for each of these questions because you will not be able to make a plan for your firm unless you know where you want to go. This is the best time to free your mind and brainstorm – drift away and explore every possible way you think your company will go. When you come up with worthwhile ideas you may not be able to get into them more deeply because your mind is worn out. The best solution is to write these ideas on a piece of paper and then look into them when your mind is fresh and able. Once you have set your goals and objectives, it is good to write a personal essay on these topics and not look at it until three years have passed. Then, you will be able to compare your views from when you started to those you have after you gained some experience as an entrepreneur. You’ll do a lot of research in this part of planning and you might even want to turn some of it into blogging material. Content marketing is a big thing no matter which niche you are in so this is not, by any means, a waste of time. Just make sure that your website is sitting on stable hosting and you should be fine.
Financial aspect
Data focused on finance is usually located at the back of the business plan, however this doesn’t make the financial data any less important than any other aspect of the plan. It doesn’t necessarily mean that you will need a lot of money in order to make a lot of money, but it’s desirable to have some. This applies especially to the companies whose objectives and goals include very fast growth. Many young and inexperienced entrepreneurs believe that they will experience growth in sales and that they will be able to finance their growth from their own profit. But, the reality is that this happens very rarely because of one simple fact – you will have to pay your suppliers before your customers pay you. Because of this “mechanism”, many companies with fast growth have to look for bank financing. Many young business owners tend to get stuck in debts and get overwhelmed with interest, so be very cautious when you decide to get business credit.
Management and operations
Management and operation plans are designed to give further detailing on how the business will function on a regular basis. Operation plans will underline the logistic issues of the company and the responsibilities of the management team likewise. It is very important to highlight the responsibilities of each department and show the expenses related to a certain part of business operations.
Use your plan properly
This may sound strange but, believe it or not, a big part of building your business plan is to plan what you will use it for. There are many things for which a business plan can be used: from planning to hire some key employees, to monitoring the progress of the organization. It is important that you know what you will use the plan for, as it is a huge part of actually writing it.
These are some of the most important aspects your business plan should cover. Do not skip the planning phase because you will suffer serious consequences. A plan is much more than a guide for managing, recruiting and operating an organization – it is the foundation.
