This blog outlines the steps required to draft a business plan and things to consider when preparing a business plan.
Writing a business plan is often considered as the key to business success. However, there are businesses that have seen profits even in the absence of a business plan. In the presence of great timing, rock solid sales skills, a passion for entrepreneurship, and luck, entrepreneurs tend to create profitable businesses without creating a business plan.
But wouldn’t you like to take a safe approach where you have a detailed business plan strategy in front of you and not leave your business’s future on luck? More often than not, having a business plan structure offers you more clarity and multi-faceted benefits that you would often lack in the absence of one. Let's look at some of those benefits of having a business plan model in place.
Every stakeholder - both internal and external - is able to gauge the present and future of a company through a business plan strategy. While typically associated with funding ventures, business plan for startups also helps with achieving a range of other benefits.
Now that we have established the many benefits that come attached with creating a business plan, let us get down to the fundamental basics of writing one.
Starting the process of creating a business plan model can be intimidating for new entrepreneurs, but having a defined step-by-step guide for writing a business plan for startups helps with setting up a clear work process.
Here are the different components of a business plan that come together to make a well-strategized document and form a part of every guide to start a business.
While usually the first page of the business plan strategy, we recommend working on the section at the end of the document. It is a high-level detailing of a business (not more than one page long) that persuades the recipients to act or simply get an overview of the current and future prospects of a company.
This is one of those components of a business plan that answers two key questions: who are you and what are the future goals. This helps give the stakeholders an insight into why you are in business and what separates you from your competitors. Typically, here are the things that form the key elements of a business plan -
In addition to these, business goals form a crucial part of the business plan for startups. When you prepare the short and long-term plan of the company, ensure that your marketing strategies for growth consist of SMART objectives.
There are three aspects of market analysis when writing a business plan structure - customers, competitors, and the market/industry your company will be operating in. This section is the most critical one as choosing the wrong market, or the right one at the wrong time, can make you a struggling business.
Understanding the scope of your market lies in having a clear idea of -
This is probably one of the most crucial parts of creating a business plan. Every other aspect of the best business plan model will fail if the customers do not like your product or service. Here, the details of the product, the benefits it offers, its lifecycle, and how the product is better than competitors’ are explained in detail.
For an easier understanding, let us divide this business plan structure in three parts -
The marketing plan you choose when developing a business plan depends entirely on your customers. In addition to adding in the 7Ps of marketing, you should add in an extensive growth strategy in the document. On a high-level, here are the things that your marketing elements of a business plan should have -
When defining the future-centric promotion plans, it will help to add in the details of the best mobile app marketing campaigns that worked for your business and plans to elevate it further.
The operational side of your business defines its long-term success. However, it is also one of the most difficult sections to work on when writing a business plan structure. While you should avoid getting into the details in this section, it should give your readers an impression that you know about your supply chain process.
Here are the elements that should be added when developing a business plan strategy -
The last element of a business plan for startups lies in the financial plan. This is the section that hand-down defines the probability of your company getting funded. Your stakeholders and prospective investors will be very interested to know how your business is performing, what are the future financial projections, your funding request, and how are you planning to address unforeseen contingencies.
Thus, when you prepare the financial plan, know the budgeting mistakes to avoid and add in critical documents like - Income statements, Profit and loss statements, Cash flow statements, and Balance sheets to justify your funding request and give an assurance to the investors of high return.
So here was the importance of business plan and the elements to cover when creating a business plan for beginners. Before we close the article, let’s look at some of the crucial things to consider that will improve the chances of your business plan getting read and acted on.
The failure to plan prepares a plan to fail. The importance of a business plan lies in not just securing your funds but also giving a roadmap to the internal team to work on. It helps people understand the role they play in business success and what the company’s growth trajectory is like.
We hope that you got the answer to how do I write a good business plan and will be on the path to making a document that will get you investors and internal stakeholders’ attention.
Aparna is a growth specialist with handsful knowledge in business development. She values marketing as key a driver for sales, keeping up with the latest in the Mobile App industry. Her getting things done attitude makes her a magnet for the trickiest of tasks. In free times, which are few and far between, you can catch up with her at a game of Fussball.
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