How to write a Business Plan: 5 topics you shouldn’t miss
Are you about to start your own company and have already found your Business Idea? If you are still in the process of finding one, then our tips on How to find a Business Idea might help you. If it is your next step to write a Business Plan but have no clue what content you have to cover then our next list will shed some light on How to write a Business Plan.
Before we are getting started we want to tell you that there is no set structure or a table fof content a Business Plan follows. So the conten may vary from Business Plan to Business Plan. However, there are some parts that should definitely appear in your Business Plan.com
1. Executive Summary
Let’s start off with the Executive Summary. As any other summary of an essay or a paper it should be written after you have finished your work. Because only then you can really summarize what you were talking about. The Executive Summary should highlight the most significant aspects of your Business Plan and should be about 1 to 2 pages long. So remember to keep it short but at the same time as detailed as possible so you can attract the attention of potential investors or clients. Introduce the readers to your Business Idea, outline its content and pinpoint what it is that you want to achieve with your business. Answer questions like which problem you detected and want to solve, who your target group and competitors are, how you want to make money, what your marketing strategy is, etc.
There are many templates that you can find online to write your Executive Summary or the entire Business Plan. However, every business is unique, so is your summary. So make the summaty your style to be sure to cover every detail
2. Business Description & Structure
In this chapter you have to provide as much information as possible about your company. The more detailed the Business Description is the better. Write down your company name, your mission statement, your type of legal entity, etc. Here it is necessary to state what your USP, your Unique Selling Proposition, is, why businesses or people should buy your product or service, which added value it has and which problem it solves. Clearly indicate why you have an advantage over your competitors and how you can be more successful than them. Here it is also a good idea to specify your strengths and core competencies but don’t boast or exaggerate too much. Demonstrate your objectives and company goals.
3. Market Research & Strategies
It is imperative to make a thorough market research to get an understanding of the current industry situation and target market. It is your chance to find out about other businesses operating in the same field and who your toughest competitors might be. With this information gathered you can determine what you want to better or different or wihch things you might want to apply to your own settings. The big question is how do you want to differentiate yourself or rather your business from the competitors? Take some time to think about that.
In the “Strategies” chapter it is your goal to illustrate your marketing and sales campaigns. How do you want to to attract customers and retain them? Where can you reach your target group, online or offline? Be clear about which channels you want to be active on and where to post ads, articles, press releases and so on. Reinforce your decision with statistics and trend research so that your stretagies are bulletproof.
4. Management & Personnel
Introduce the readers to your team. Who are the faces and the minds behind your business? What are their experiences, knowledge and expertise? What are their qualifications and competencies? How do your skills complement each other. The Personnel is one of the most important aspects investors take into consideration when deciding about an investment because it is decisive for the business’ success. Besides you should also inlcude who will run the business on a daily basis and describe the different positions your team caries out as well as the responsibilities.
5. Financial Plan
In your Financial Plan you put everything you just covered into numbers. Every intention, every plan, every goal has to be backed up with a number so that you can show the reader that your business will make money and will be stable and financially successfull in the future. Be sure to explain how the cash flows will be in the next fice years and how potential investors will receive a return on their investment. If you are not in the pre-seed or see-phase anymore but rather more established you can include any documents you might have like income statements, balance sheets and so on.
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Author: Kathleen Bier
Online Marketing & Project Management