How to make a business plan: the essential elements for planning a winning business strategy.
To develop a modern and successful business strategy, it is essential for any company in the market to draw up a detailed and precise action plan. How to make a business plan is a priority question for new companies and companies that wish to revolutionize themselves by promoting innovative products.
The business plan, commonly known as the business plan, is the programming document required of the entrepreneur to outline his objectives and to define future company prospects in order to technically verify the actual economic feasibility of the organized projects. How to make a business plan is without doubt a priority activity for every company with the aim of achieving significant goals and long-term successes. Keep reading profitable small farm ideas.
A business plan, combined with a detailed market analysis, is an indispensable document especially for innovative companies, start-ups and companies renewed with latest proposals. The business plan is not only necessary to assess the risks and objectives of a nascent commercial reality, but it is a useful tool for planning the marketing operations of an established company and to facilitate the granting of loans from intermediary bodies such as banks, financial institutions and business partners.
Recent Nielsen research highlights the economic importance of updating corporate services by stating that the successful launch of a product on the market can generate a turnover of more than $150,000 for a company. Identifying new potential commercial markets through the preparation of an adequate business plan is undoubtedly an indispensable activity to effectively plan the offer of an innovative product and achieve significant goals.
How to make a business plan? 10 key points to fill out to optimize your business
In order to provide an adequate overview of one’s business situation and obtain investments and consents, it is necessary to include some essential information within the business plan.
How to make a business plan? Let’s find out what are the key points to fill out …
1) Index or Summary
A correctly set up business plan has a summary or index that can simplify its reading. Numbering the pages of the document is an indispensable activity to make the business plan easy to understand and to allow a quick and immediate consultation.
2) Description of the project
How to make a business plan? The description of the project is undoubtedly the most influential section: this presentation is a detailed but brief description (about 2 pages), able to effectively highlight the fundamental aspects of the business plan and to illustrate its strengths and weaknesses. The initial description contains most of the characteristics of the entrepreneurial idea: explanation of the product, its characteristics, and the production processes necessary to make it and its innovative elements compared to the proposals already on the market. A successful entrepreneur is able not only to present the strengths of its product, but also to describe the characteristics that need improvement by proposing appropriate and carefully organized solutions.
3) General company presentation
The general presentation of the company is essential to provide a detailed overview of the company and the commercial sector in which it operates. The section of the business plan dedicated to industrial description, to be correctly processed, should include: name and legal form of the company, mission and project objectives, description of the business sector of the business and strengths and originality of the company. The description of the sector of reference is particularly important within a winning business plan: to be able to realize your business idea it is essential to try to demonstrate how many opportunities are present in your commercial market using statistics and research shared by reliable sources. Another essential specification is related to the possible profits made with the project. Demonstrating the business potential and documenting the planned results is undoubtedly a valid activity to obtain financing.
4) Organizational aspects of the company
The fourth section of the business plan is dedicated to the presentation and description of the positions occupied by the resources included in the company staff. Administrator specific know-how and skills are the first required data, usually followed by the associates’ commercial qualifications and information regarding human resources and work organization.
5) Market analysis
Knowing how to do a business plan is important, but it is not enough to obtain financing and realize your business idea: the key element of every business activity is, in fact, market analysis. Market research is a specific analysis used by companies to study the economic context in which they operate, the reference sector of the company and the behavior of their potential public. To develop a winning business plan and develop new business strategies it is necessary to carry out a market analysis capable of highlighting new profit opportunities and potential risk factors of one’s reference market.
6) Marketing and promotion strategy
To develop a successful business plan it is necessary to plan a winning marketing technique: in the sixth section of the document the product distribution strategies and the methods that allow the company to position itself positively within the reference market must be described. An essential activity to carry out an adequate description of one’s marketing and communication activities is the identification of one’s ideal client. All strategic business activities must be planned based on the needs of the target-audience business. A further specification required within your business plan is related to the distribution channel of your products and promotion methods. By carrying out specific market research, email marketing with personalized messages.
7) Operational plan
The operational plan in a standard business plan model describes the ongoing operation of the company: this section of the document describes the daily activities of the company, the position, the production processes, the staff and the surrounding environment. In this paragraph it is recommended to highlight the potential benefits that the company could bring to the community, such as the creation of new jobs, and the possible effects on the surrounding nature with relative management plans compliant with the environmental regulations in force.
8) Economic-financial plan
The section of the business plan dedicated to the economic-financial plan is undoubtedly the most important as it represents the actual economic and financial feasibility of the business idea. In this paragraph it is necessary to translate into numbers all that has been previously described with the words: initial expenses and capitalization, profit and loss projection at 12 months, annual and three-year cash flow projection, balance sheet at the end of the third year and calculation of the break-even point they are the indispensable financial documents for drawing up a credible and valuable economic testimony. The economic section is the part of the business plan most consulted by investors: formulas, tables and charts are essential tools to be used to prove their own calculations relating to the company’s profit prospects.
A good entrepreneur is able to motivate his or her choices and ideas in any situation: a brief description of the motivation behind the business idea can prove to be a fundamental tool to include in your business plan. The entrepreneur’s willpower strongly affects the opinion of the lenders. An innovative idea based on solid principles is the ideal starting point for gaining success and gathering support.
The attachments are the last essential documents to be included in a winning business plan as the readers, especially the financiers, may wish to consult the sources used to find the data contained in the document. Providing them with attached files can be a successful strategy for obtaining funds and giving your business a credible idea. It is advisable to include some particularly important documents in your business plan: sector studies, maps and photos of the company location, financial calculations and economic projections, detailed list of equipment, brochures and advertising material, market research and letters of support from part of potential future customers.