Running a successful business is not as easy as it may seem at the conceptual stage. We sometimes have the impression that, as far as it is a good and ingenious idea, setting up and convincing people about our idea will be a walk over. However, in many occasions, it is not the case. That’s because it takes more than having a good idea to make a business successful. Proper planning and execution is an important factor for the success of any business, hence the need for an effective business plan.
Do you have a great idea for a business and you are not sure of how to start? Writing out a good business plan could be a good way to start. It helps a business owner to analyze his thoughts for the business, coordinate them and make them clear for others to see.
A good business plan could make way for attractive business opportunities you probably wouldn’t have had through word of mouth. This is because ideas often appear more convincing when written down and broken into details.
Creating a good business plan is not as difficult as it may sound. Here are essential elements a good business plan should have.
This should involve all that the business is about. As it is the summary and probably the first thing anyone would read about the business. It is important to include all that you want the reader to know about the business. Ensure you make it attractive and very engaging. It should be convincing enough to make anyone want to invest in the business. Key elements of the executive summary are the mission statement, founding details of the company, growth highlights, products and services as well as highlight of future plans.
A good business description details the idea and concept of the business. Note that this is different from the executive summary as its aim is to make the reader buy into the idea of the business. Your business description should tell what differentiates your business from others and the product and services offered.
Product or service
Give a detailed analysis of your products, highlighting its benefits and the different stages of renovation it is scheduled to undergo
Every business needs an appropriate market strategy to launch into the market. Under this column, explain the strategies you hope to employ to reach your audience. You should also be able to clearly state why you have chosen the mentioned market strategy and how it would appropriately suit your business.
Here you are to provide a record of your competition in the market. Highlight why they are your competitors, their successes as well as their failures. You should also be able to appropriately rank them from highest to lowest, based on how they are perceived by the public.
Design & development plan
Does your business have a structure and development schedule? Tailor out a step-by-step plan for your business. This could be bi-monthly, quarterly, annually or every two years. Explain the expected process of growth that when presented, the reader can clearly understand where the business should be in the next 5 years.
Who runs the business? Do you have a board of directors or are you the sole decision maker? In this column, explain what the management structure is like and the reason for choosing that plan.
This is probably an important aspect of the business plan. It is expected of you to give detailed information on the financial status of the company, future plans that would need finances and the positive ROI an increased finance could produce. Ensure that you have good information to give here, as this column would probably interest an investor.
Your request doesn’t have to sound emotional or like you are pleading for funds. Make your request clear and easy to understand. It is advisable to clearly state the amount you hope to get from investors. With this, you will give the investor the confidence that you know what you are doing.
This is an optional column. If there is more information about your business that you want to include, you can detail it out here.
The aim of your business plan to clearly state what your business is about and where it is headed. Ensure that you carefully prepare this document, making it free of errors and false information, as this could negatively affect