You have probably heard about the importance of having a plan before launching into action. It is essential to have a great business plan before you start a business venture or go to capital investors or a bank for finance. An impressive business plan is not one that boasts a lot and promises big profits.
Well planned and well written business plans highlight the specialties of your business but at the same time do not overlook the challenges. The business plan lists the obstacles and shows strategic ways of overcoming them. Well-written business plan shows the mettle of the entrepreneur and helps investors in understanding the potential of the business. Here are some guidelines to help you write the best business plan for your company.
There different types of business plans
Your business plan and its structure will depend on the stage that your business is in. If you are launching a startup then the business plan should include a detailed description of the products and services that you will be offering. It should also introduce the investors to the management team.
You have to do a through market analysis and present data supporting the growth possibilities of your business. Spreadsheets and financial details should also be included into this. The pricing, income and projected break-even point, marketing techniques and technologies to be used have to be included in your business plan.
Internal business plans are made for an audience that is already part of your business. This type of business plans describes a particular project and its pros and cons. Evaluating a target and providing analysis of profitability are its mottos. The feasibility business plan is for evaluating if there is a ready market for the products or services on offer and who will be purchasing them.
Operational business plans are for analyzing particular operations within a business organization. Growth plans are also a type of business plan which is used for analyzing the growth opportunities, methods and strategies of a business house. It is also used internally and for convincing the investors to invest more.
Competitive analysis is necessary for creating effective business plan
Every good business plan has a section called competitive analysis. In this section business owners have to provide detailed analysis of existing and possible competition. They also have to specify how they will be able to overcome the challenge posed by competition. Small businesses with fewer resources cannot promote their business through popular Media.
For them analyzing the competition is doubly necessary. If you cannot give the brand value that other established competitors are offering then try to build your brand by offering more value added services. It is necessary for the success of your business that you profile each and every strong competitor.
Find out what are their strengths such as pricing, services, facilities, convenience and huge product inventory. You also have to find out their weaknesses that you can us to your advantage. The objectives, clientele and marketing strategies of your competitors are also necessary points to be evaluated.
Determine ROI from business plan
The business plan should be prepared in such a way that you and anyone else can determine the ROI of your project from it. Use less words and less time to prepare the business plan. If you have a clear idea about what you want to do and what are your long term goals then your business plan will be concise yet full of necessary information. IT will help you find out how much you can get in return of investing your precious resources.
Your business plan can help you attain credibility in the eyes of investors so don’t take it lightly. In a business plan you must provide detailed competition analysis and describe the strengths of your own business.