BUSINESS PLAN: A business plan is a written document that describes in detail about a business and it also defines its objectives and how the firm is going to achieve its goals. A business plan lays out a written roadmap for the firm in both financial and operational standpoints. So, Business plans typically include detailed information that can help improve the business’s chances of success, like a market analysis, competitive analysis, customer segmentation, marketing, logistics and operations plans, cash flow projections and an overall path to the long-term growth.
WHAT IS THE USE OF HAVING A BUSINESS PLAN?
These business plans help entrepreneurs to assume the exact position of the firm or startup and also they help business owners to see the plan ahead, make important decisions, and improve the overall likelihood of success. Formulation of a business plan should be the first thing done when starting a new business. Business plans are also important for attracting investors so that they can determine that whether your business is on the right path or not and worth investing money or not.
Building a business plan allows you to determine the answer to some of the most critical business decisions ahead of time. Without a business plan, objectives often become arbitrary. So, having a business plan can help make those benchmarks more intentional and consequential and it can also help founders of the firm to be accountable for the long-term vision and strategy, and we can also get the insights into how the applied strategy is coming together over time.
OUTLINE OF A BUSINESS PLAN : The below provided information show’s the step by step process of writing a business plan and highlights about the points that are to be included in each step.
STEP1- INTRODUCTORY PAGE:
- Include Name & Address of the business, Nature of the business, Statement of financing needed.
- INDUSTRIAL ANALYSIS:
- Write about, Future outlook & Trends
- Analysis of competitors
- Market segmentation
- Forecast on Industry & Market
STEP2- DISCRIPTION OF VENTURE:
- Introduce about Product(s), Services(s), Background of entrepreneur and size of business.
STEP3- PRODUCTION PLAN:
- Include Manufacturing process
- Physical plan
- Write about needed Machinery & Equipment.
- Write names of supplies of raw materials.
STEP4- OPERATIONS PLAN:
- Describe flow of orders for goods (or) services
- Technology utilization
- Description of company operation.
STEP5- MARKET PLAN:
- Describe about Pricing, Distribution, Promotion & Product forecast.
STEP6- FINANCIAL PLAN:
- Include sources and applications of funds.
- Cash flow projections
- Break even point (Analysis)
- Balance statement & Income statement
STEP7- ORGANISATIONAL PLAN:
- Write clearly about Form of ownership
- Identification of partners (or) Principal shareholders
- Roles and responsibilities of members in the organization
So, the above described steps are the steps that have to be included while writing a business plan. Hope this article makes you to understand about the importance of business plan along with it’s out line structure.