How to Write a Business Plan Step by Step
The well-versed, properly formulated and precisely written business plan is the first step towards the organizational success. Whether you are setting the business goals or planning to attract the potential investors, an appropriately written business plan supplements the every business decision.So, today our goal is to deliver you the accurate and applied meaning of a professional Business Plan and also how to write a business plan step by step.
What is a Professional Business Plan?
A business plan is a document which consists all the business details, starting from the company’s vision to future financial projections, everything is clearly stated in a business plan.
In other words, it is the initial step towards the business planning process in entrepreneurship and defines a proper path which should be followed while conducting the business practices.
How to write a professional business plan is not limited to newly established businesses only, however, every single business operating in the entrepreneurship industry needs to have an updated business plan.
How to Write a Business Plan Step by Step
How to write a professional business plan during the business planning process is not at all a tough job. Since investors are short of time (excluding banks) and marketers are only interested in specific part of your business, therefore, you are only expected to be creative yet appealing to know that how to write a professional business plan.
Pre-requisites Business Plan Process Steps
If you are interested in gaining the attention of your target market as well as your potential investors, don’t forget to follow some of the pre-requisites of How to write a professional business plan.
How are you Different from other Businesses?
Before crafting a business plan, you should consider that fact that there will be thousands of businesses like yours in the market waiting for investor’s attention. During business planning process your focus should not be on the length of your business plan instead you should ask yourself that ‘why should anybody invest in your business?’ or ‘How your business plan is different from others?’
It is highly important to ask yourself the above-stated questions during the business planning process because if you don’t have enough information about the differentiating factors of your business then, how would you convince the investors and customers to take the interest you?
Understand your Audience and Be Simple
You should understand that your audience or investors are not the business gurus or someone having the business degree from a reputable institute. Investors are basically the people with money and they are willing to give it away for the sake of generating revenues.
Your business plan should be short, clear and understandable. An understandable business plan is the synonym for business growth and cannot let go of this opportunity just by using hard words.
Even if you are planning to deal with complex products like software, machinery or even medicines, try to be as simple as possible. You should focus on making your objective and goals clear rather than showcasing your vocabulary grip.
Remember a short business plan tends to attract more people because it consists of precise information about the business strategies and its linkage with the financial position of startup.
Business Plan Process Steps:
Once you have properly analyzed your business and have acquired just accurate information about your audience then, next step is all about writing down the uniqueness of your business by looking at some of the major parts of the business plan.
State the Purpose of Writing the Business Plan
The first step in the business planning process is about stating the purpose of your business plan. This step is also called an executive summary because it gives a rough idea to the reader about your business and what benefits they will have after reading the business plan.
Some of the major components which should be included in the executive summary are as follows:
- Who you are and what is your business: It’s always a good idea to give your little introduction in the summary and for how long you have been associated with the particular field. Next state about your business and what it is all about.
- Why are you telling about your business to the reader? In the first part, you should precisely talk about the benefits the reader will get after reading the business plan.
- It’s better not to talk about monetary gains directly, talk about the indirect benefits like expansion in the business portfolio, stronger equity conditions and customer benefits.
The first part of the business plan should not exceed more than 10 lines. Keep it short and crispy.
What’s your Business is All About?
Once you have provided the little glimpse about your business to the reader then, next step is all about uncovering the details. In the detailing step, you will talk entirely about your business and its introduction.
Most of the people make the mistake of writing about their personal experience in the introductory part. Always remember that your reader or investor will not be interested in listening to your dreams or motivation behind the project, however, he will be looking for the uniqueness.
- Properly define your business by using the simple language. Add your goals, and objectives also.
- Tell what’s unique about your business and why it’s going to be a market leader after few years.
Don’t add unimportant stuff during the introductory part as it may reduce the interest of your reader.
What Market Problem your Business will Solve?
The most crucial part of any business plan is ‘need’. In the business plan, you should clearly state that what problem of the society/ country will get solved with your business.
- It is better to clearly state the need for your business and how feasible it would be for other people to use your business.
- It is always recommended to take the help from pictorial illustrations for explaining your business idea properly.
- You can take help from the similar layouts present on the internet and use them as business planning process example.
- Also, talk about the current problem in the particular field and how your business plan could solve it effectively.
How will the problem be solved?
Once you have helped the reader in recognizing the problem then, next step is all about the solution.this part of the business planning process, you will suggest the solution to the raised problem.
In other words, you will talk about the business strategies and their proper execution.
- The solution part, directly states the answer and talk about your business strategies.
- Your strategies should not be vague and unrealistic in nature, however, they should be achievable.
- It’s better to take about your competitor’s strategy also in this better because then, it would become easier for the reader to differentiate between the businesses.
Who are your Competitors
After giving the valid solution to the problem, now you should shed some light on your competitors. It is important to understand that market is usually loaded with direct and indirect competitors. Moreover, the chances of substitutes are also capable of impacting the business growth.
- In this part, you should properly do the competitor analysis, what services they are providing, their target market, flaws in their process/gaps and their strategies.
- State how your business aims to fill the market gap and provide benefits.
Your Target Market
Your target market is basically your end consumers. For instance, if you are offering the food delivery services to the upper class of the market then, your pricing strategy, marketing, ways of communication and technique will be aligned with your target market.
If you want your business to grow at a rapid speed then, it is highly important to acquire maximum information about your target market, their interests, practices and what sort of product they like.
In your business plan, you should only state the highlights about your target market.
- Add their expected income group. For example, upper class, upper-middle class, or middle-class people
- Age group
- Education and their locality.
Keep your target market information as short as possible.
The initial six steps in the business planning process were just about the basic business plan however, the marketing strategies are the part of the practical implications.
In this part of the business plan, you should clearly take about your marketing objectives and how much sales you are planning to achieve in a quarter. Always remember that if the product or service is not marketed properly then, it’s going to fail.
- Talk about your awareness program. For instance, how you will inform the target market about your product.
- State about the marketing strategies. How will you convince the whole sellers to buy your product and place it in the retail stores?
- Marketing tactics for the upcoming quarter. Talk about the advertising campaigns and how their anticipated impact on the target market.
No doubt how creatively you write or how appealing your business plan is, If the investor is not satisfied with your financial analysis then, he might reject your business plan straight away.
- In the financial part, talk about your business processes and its impact on the product cost.
- Talk about the Stock keeping units, inventories you will be holding, cost of inventories, service charges, pricing of each product, product margin and break even
- It’s better to use the graphical illustrations for this part in order to define the profitability of the business and its future growth.
- Try to reduce the words and increase the numerical figures for better understanding.
Team, you will work with
As two heads are always better than two, therefore, it is important to state about the business heads you will be working with. In the business plan, it is important to give highlights about your partner.
- Do state about the past experience of your partners and how they will impact the business growth
- Give a little glimpse of their education for increasing the credibility of your business plan.
Chances of Business Growth
It is totally impossible to predict the future of any business however, you can state about
the anticipated growth of your business by considering the developments in the
For instance, talk about how the recent innovation in any internal factor will impact the
business growth or how the rapid boost in the purchasing power of the individuals will
increase the demand for your business.
- Don’t pass the unrealistic statements, try to play safe
How to write a business plan step by step info graphics :
How to write a business plan step by step video :
Writing a business plan is all about gaining the attention of your reader. Remember that
your business plan is not limited to the investors only, however, it can help you in
achieving the business goals and determining the next step which could lead to
immense business growth in the future.
So are you ready to give a rapid boost to your business with the help of properly
defined business plan?
If you find our work helpful and informative on how to write a business plan step by step
then do give us your reviews in the comment box below
Need help? Feel free to contact us by leaving your comments below.