Business Plan
What is a business plan and why do you need one?
The business plan is exactly what it says it is - a plan for what your intended business is:
- What the business will do
- Who your target market is
- Your viability study
- How you intend to set up your new business
- Your marketing plan
- Your staff requirements
- Some financial planning
How to write a Business Plan
There are many sources of information on how to write a business plan. You can hire someone to write it for you, but that is not usually the best approach. A business plan is usually best written by you, as it forces you to consider every aspect of your business carefully. It is an integral part of your strategic planning process, and you must therefore be closely involved with every aspect in the development of the business plan.
If you are worried about the presentation of your business plan, you should write it yourself first, and then get a professional to "translate" what you have written into a properly packaged document. Your business plan will also change over time as your business evolves and possibly grows or changes direction.
Business Plan format
- Vision statement
- The people
- Business profile
- Economic assessment
Main body sections
1. Define your market - sector(s) and segment(s) definitions
2. Quantify your market (overview only) - size, segmentation, relevant statistics, values, numbers (locations, people/users, etc) - make this relevant to you business
3. Explain your market(s) - sector trends, eg., growth, legislation, seasonality, show the strategic business drivers within sector and division, purchasing mechanisms, processes, restrictions - what are the factors that determine customers' priorities and needs - this is a logical place to refer to ethics and CSR (corporate social responsibility)
4. Explain your existing business - your current business according to sector, products/services, quantities, values, distributor, etc.
5. Analyze your existing customer spread by customer type, values and products/services including major accounts (eg., 80% of your business comes from 20% of your customers)
6. Explain your products and services extensively
7. Explain you routes to market, gatekeepers, influencers and strategic partners - the other organizations/individuals you will work with to develop your market, including 'what's in it for them', commissions, endorsements, accreditations, approvals, licenses, etc.
8. Case studies and track record - the credibility, evidence and proof that your propositions and strategic partnerships work
9. Competitor analysis, e.g., SWOT analysis of your own business compared to SWOT analysis of each competitor
10. Sales/marketing/business plan (1 year min) showing sales and margins by product/service stream, mix, values, segment, 'distributor', etc, whatever is relevant, phased monthly, in as much detail as you need. This should be on a spreadsheet, with as many different sheets as necessary to quantify relevant inputs and outputs.
11. List your strategic actions (marketing campaigns, sales activities, advertising, etc) that will deliver the above, with costs and returns. This should be supported with a spreadsheet, showing cost and return on investment for each activity. Cited: Businesballs, 2011
For Business plan templates, click on the following links:
For a business plan sample, click here.
Sources
Last Update: 14 November 2011
