How to Prepare a Simple Business Plan
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Think you have a great idea for a business?
What have you heard about drafting your business plans?
Have you spent time on websites trying to assimilate the act of mastering simple businesses?
What are the distractions you face while coming up with business ideas?
The best way to find out if you have a business plan is to embark on your research and write a business plan to check it’s feasibility. This article below will get you started.
A SIMPLE BUSINESS PLAN
A simple business plan could be seen as a written document describing succinctly how a business is structured and how it runs towards achieving its goals.
In establishing a business, the entrepreneur is saddled with the responsibilities involving development and management as well as the risks involved with the massive rewards. The downfall of a business appears to be as a result of business owners not seeking means of developing an effective business plan. A business plan is essential because it helps prospective entrepreneurs broaden their scope on decision-making when establishing a medium to large-sized ventures.
THE BUSINESS PLAN PROCESS
Intending business owners see a business plan as created as an avenue to fundraising and document business criterion for investors. However, business plans are actually the best because they help navigate individuals towards executing excellence in the labour market.
As clearly stated above, numerous business or intending brand owners mount their businesses without business plans; however, this is usually time, strength and resource taking. Without business plans, owners are not grounded to ensuring the business is focused towards the goals. In this vein, the business owners fall out of knowing when there is a rise and fall in the business’s profits.
A business plan should clearly define the business’s mission, the values it adds to the economy, the strategy for meeting the masses’ demands, not forgetting its objectives, and meeting up to the owner’s expectations. Drafting a business plan is the most sensitive and most tasking part of establishing a business. It should involve attention and being treated as important, as it determines the loss or gain of that business.
Business experts laid views on starting a business plan about 6 months before initiating the business. Effective business plans take hours ranging from researching, analysing, documenting and reviewing. The business planning process entails 5 or more strategic steps listed below;
SUMMARISE YOUR VISION
This is the first step which should be put into consideration. A vision statement is of the essence because it helps relate the mental image the organisation hopes to achieve at the long run. This step helps the leadership enjoy shared goals.
The mission statement portrays what the company takes passion to and its existence.
PERFORM GAP ANALYSIS
A gap analysis help the organisation through ways of identifying the gaps between the business’s current state and It’s vision(where it sees itself).
STATE SMART GOALS
This involves the time an organisation places on checkmating their progress level.
Updates on the business’s progress should be carried out quarterly. This step is regarded as important.
COMPONENTS OF A BUSINESS PLAN
There are various components involved in the drafting of business plans:
The executive summary is the first plan in business because it summarises what the business has to accomplish. It is a part which reveals the company’s mission statement. In this stage, the reason the company is started should be explained including the experiences gained in the aspect of the venture.
This section seconds the executive summary which carries vital information about the business, ranging from the goals and having the customers at heart. It should state how resourceful the company’s product and services would be targeted to the audience.
In this stage, the use of data and statistics are implored stating where the market had been, where it’s would be in years and how your company will be the best plug for the economy. In addition, the details on the consumers‘ income levels would be clearly stated.
Following the components, a description of management and organisation, breakdown of product and services, marketing plan, sales strategy, request for funds and financial projections are also necessary to consider while establishing a business.
In conclusion, a business plan should be shown to extended professionals for proper and adequate reviews having also an accountant who aims at mapping statements thereby assessing business and personal tax considerations. The business plan is tidily compiled in a file or it should be spiral bound for delivery or mailed electronically to the one in possession of the business at the stipulated time. The strategic steps listed above are necessities for a successful venture.
However, there are no specific steps involved in mapping out one’s business plan as other methods which would see to the effectiveness of the business could be imbibed. It is of great importance an entrepreneur shoulder all the responsibilities having to do with the management and development of the company. Having a business plan also focuses on the targets placed and their contribution to the smooth running of the new business hence, liaise the product and services with others with would be the ground for the financial proposal.
Note: A business plan doesn’t revolve around earning needed financial stability but also indicate the future direction taken by the company.