Julia is a New York-based writer who began covering technology and business during the pandemic. We also cover her books and the publishing industry.
Kelly Main is a marketing editor and writer specializing in digital marketing, online advertising, and web design and development. Before she joined the team, she served as a content producer at Fit Small Business, an editor and strategist covering her content on small business marketing. She is a former Google technology entrepreneur and completed her Master's degree in International Marketing at Napier University in Edinburgh. Additionally, she is also a columnist for her Inc. Magazine.
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Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan will outline your short- and long-term goals, budget, and everything else you need to get started. This guide will teach you how to write a business plan that will guide you as you start your business on an ongoing basis.
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Brainstorm an executive summary
Drafting the outline
The executive summary is a very important first step in your business. To capture and maintain investors' attention, you must be able to fit the basic facts of your business into elevator pitch-style writing. This will require you to tell them the name of your business, what products or services you sell, and what market you serve.
ask for help
When writing an executive summary, you should have several different options. Engage several thought partners to explore possible executive summaries and decide which one is best.
Create a company profile
Once you have created your executive summary, you can work on your company description with more specific information.Description must include your information Registered name of business operatoryour business address, and key employees involved in your business.
Your business description should also include the structure of your business, such as: Sole proprietorship, Limited liability company (LLC), partnership or a corporation. At this point, you need to specify how much ownership everyone has in the company. Finally, include a section outlining the company's history and how it has evolved over time.
Brainstorm business goals
No matter where you are in your business journey, revisit your goals and assess how you are achieving your ongoing goals and setting new goals to move towards them.
Goals based on numbers
Goals can cover different sections of your business. It's natural to set financial and profit goals when setting up a business, but there are other goals to consider when it comes to brand awareness and growth. For example, you may want to gain a certain number of followers or increase engagement rates across your social channels.
Another goal might be attracting new investors or, if you're a nonprofit business, finding grants. If you're looking to grow, you'll also need to set revenue goals to make that happen.
intangible goal
Goals that have nothing to do with trackable numbers are also important. This includes making sure your business's advertising reaches the general public and receiving great reviews from your customers. These goals are important to the direction of your business and where you want to go in the future.
Please describe your service or product
Your business plan should have a section that describes the services or products you offer. This is also the part where you explain how you fit into the current market or offer something needed or something completely new. If you have patents or trademarks, you can include them here as well.
If you have visual aids, they should also be included here. This is also a good place to include your pricing strategy and explain your materials.
Conducting market research
This is the part of your business plan where you can explain your expertise and different approaches in more detail. Show how what you're offering is important to the market and fills an important gap.
You can also position your business within your industry, compare it to other businesses, and compare how you have a competitive advantage in the market.
Create a financial plan
In addition to financial goals, you should also create a budget and set weekly, monthly, and annual spending plans. There are a number of different costs to consider, including operational costs.
Business operating costs
Business rent is the first big expense to factor into your budget. If your business is remote, the cost that replaces rent is the software that maintains virtual operations.
Marketing and sales costs are next on the list. Investing money in getting people to know about your business is just as important as making sure it functions.
Other costs
Although disasters cannot be predicted, unexpected costs are likely to occur at some point in the life of your business. It's important to factor these potential costs into your financial plans so they don't go completely unnoticed.
conclusion
A business plan is important for businesses of all sizes as it allows you to define your business's position and future goals. Growing a business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.
FAQ
How do I write a simple business plan?
When working on your business plan, make sure you have as much information as possible so you can simplify it to the most relevant information. A simple business plan requires all the parts described in this article, but can be done very clearly and directly.
What are some common mistakes made in business plans?
The most common mistakes in business plans are common writing issues such as grammar and spelling errors. It's important to clarify your writing structure and proofread your business plan before sending it to investors or partners.
What are the basic things that should be included in a business plan?
When writing a business plan, you need to make sure to cover everything related to your business concept, analysis of the industry including potential customers, an overview of the market for your products or services, and an execution plan. A vision for the business, a plan to grow the business if successful, and all financial data about the business, including current cash reserves, potential investors, and budget plans for the next few years.
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