Tuesday, 28 April 2020

How To Write A Business Plan (The Best Guide)

How To Write A Business Plan

If you want to get your business organized and start strategically increasing your profits and growing towards your goals then keep on reading. This business plan has six main sections and I will recommend that you start by scribbling your ideas for each on a separate blank piece of paper. Once you get your ideals worked out you can create one cohesive documents. The six pages of your business plan are;

  1. Overview
  2. Message
  3. Marketing
  4. Product
  5. Production And Delivery
  6. Goals


Let's Get Started


1. Overview

  • Business Name
  • Your Company Structure
  • The Location Where You Do Business
  • Overview Of What Your Company Does.
  • Mission
  • Chart Of Accountability

Business Plan

The first page of your business plan will be an overview. It is going to give a basic understanding of what your company does and the structure of your company. In that first overview page of your business plan. You want to include;

The next piece of information for your company's overview is your company's mission. And this is really important because it is the driving force behind your business plan. It is what all your plans are focused on achieving. And if you don't have a mission it is like trying to make plans to reach a goal without having the goal. So make sure you don't skip this step. The final component of the overview page is your chart of accounts. this chart describes who is accountable for which of the major tasks involved in running the business. The three main areas of accountability in most businesses are;
  • Marketing And Sales
  • Operations
  • Finances.

2. Message

  • What problem does your company solve for customers?
  • What result does your company create for those customers?
  • How does your company create those results? 
  • How does your company serve?
  • Why do you do what you do?
  • Why should your customers choose you over your competition?
  • What is your company's step by step plan for creating those results for the customer or what is your proprietary system?

Business plan

It is really important if you want your business to be successful, that you have a clear idea of what message you are working to communicate with your customer. Who are those customers? How do you fit into their lives? How can you help them solve a problem that they are facing and create a result that they are looking for? This both helps you answer the question of what sets you apart from your competition and it also shows your customers how you are going to create those results that you are promising. Which will give them much greater confidence in your ability to create the results?


3. Marketing

  • Target Market
  • Size Of Target Market
  • Where You Have Identified That You can Find Groups Of Those Target Customer
  • Demographics
  • Age
  • Income
  • Where they Live
  • Psychographics
  • Interest
  • Their Desire and their fears
  • Visibility Strategy
  • How people will first learn about your product and about your product.
  • Lead Generation Strategy
  • How you will establish contact with the people who have discovered your brand
  • Conversion Strategy
  • Your sale strategy. How you are going to turn those leads that you have generated into paying customers

business plan

This page focuses on marketing and generating sales. First of all, you will want to define your target market by their Demographics and their psychographics. Demographics are attributes such as their age, their income, where they live. While psychographics has to do with their interest. their desires and their fears. You also want to include the estimated size of your target market. And even more important than that is where you have identified that you can find groups of those target customers.

Here is a big hint

If you have not yet figured out where you can find groups of those customers be it online or off online. You are probably going to have trouble successfully marketing your product or service that you sell. So if you come to this part in the business plan and you don't know what to put here. You are going to want to do some research and make sure that this target customer that you have defined with the demographics and the psychographics. It someone who you can find groups of, because if you can't find a group of them then you might want to consider redefining that target customer and slightly pivoting your marketing position.

Here is a quick aside, as you are working through this business plan for yourself, it is more than likely that you won't know the answers to all of these questions and you won't have all these things figured out yet. And I just want to let you know that that is completely alright, and one of the main purposes of writing your business plan is to become aware of this thing that you haven't thought about yet or that you haven't figured out, that you don't know. Because only once you are aware of what you don't know will you be able to figure those things out? So don't put off writing the business plan because you don't know everything yet, but rather write the business plan so that you can get very clear on exactly what you do know and what you need to figure out. 


4. Product

  • Identifying What That Product Is
  • Describe the Result that The Product Create
  • Describe The Impact Of the Product Create

How To Write A Business Plan

This page describes the product or products that you sell. And just so we are clear here, a product could be a physical product or a digital product or a service. But I am just using the term product in a general sense. On this page, I highly recommend that you choose just one product as your business's primary product. You might sell several different things, you might even sell hundreds of different things, but determine what your main product is that you are going to Center your business's marketing message around, and try to structure your business around selling. 

The reason that I recommend that you do this is that many different parts of your business development will be much easier if you do have one product that is the focus. 

Here is a hint

What your company sells is the result of the product creates, not the product itself. After describing the result, describe the impact of product creation. This is different than the result itself. It is instead, how the customer's life is affected by the result of the product creation. For example, if the product that you are selling physically is a vacuum cleaner, then the result of the product creates is clean floors, but the product impact is that your prospect feels better about the state of their house, has a cleaner healthier living environment and perhaps feels more confident inviting company over. Once you have described those three things for your main product you can move on to other products that your company sells.

  • Other Product
  • What the product is?
  • The result that it creates
  • The impact that it has on the customer.

5. Goals

  • 1-years Goals to 5-years goals

Business Plan

If you look at an example of business plans in the past or read a guide on how to write a business plan. You might see a section that focused on projections. Sales projections or new customer acquisition projections or market share projections. And if you have tried to write a business plan in the past and you tried to write a section, you may have found it very difficult. And chances are that is because you are running a small business or maybe you have just started your business. It is really difficult to make accurate projections or projections at all for that matter if you don't have any data to base them on. 

That is why I recommend that if you are just starting your company or you have only been in business for a couple of years then instead of trying to create projections, you instead simply set goals. 

You can decide exactly how long you want to make your goals for, but a good place to start would be to set some one-year and also some five-year goals. That way you know you need to work on right now but you also know where you are aiming longer-term. For each time frame, you can set whatever goals you like, however, some that I might recommend is


  • 1-Years Goals
  • Number of sale___________
  • Total revenue_____________
  • Profit
  • Impart. In terms of the number of customers who you help or how wide you spread your message.
  • Development. This could be the extent to which you have advanced the product that you create and offer or to what extent you have built your company.

  • 5 -Years Goals
  • Number of sale___________
  • Total revenue_____________
  • Profit
  • Impart. In terms of the number of customers who you help or how wide you spread your message.
  • Development. This could be the extent to which you have advanced the product that you create and offer or to what extent you have built your company.

When setting goals it is already important to set specific measurable goals and to set a deadline for when you are planning to reach somebody





Conclusion

That is everything you need to include in your business plan. As you see it is six simple pages and you already know most of the information that will be going into this business plan already. There are many of other pieces of information that you may want to include in your business plan and of course, you are more than welcome to include any relevant information that describes how successfully run your business and how you plan to reach your goals.

However, my final piece of advice for you is to make sure that you don't over complicate things. more word is not better. in fact, your business plan will be the most useful if you keep it short and relatively simple. because if you write a document that is 20 40 or more pages long, chances are high that nobody will ever even go back to read it ever again. 

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