Why You Need A Well-Written Business Plan

Linkilaw Business Structures

A business plan is an essential ingredient of any successful business.

 

Essentially, it’s like a blueprint of your future business, what it will look like and what it will entail. Many businesses don’t have a business plan at all, and this is a fundamental flaw you must avoid. In fact, a business plan should be considered as an absolute necessity for business success.

After all, if you don’t have a clear destination in mind and a path for getting there, how can you really expect to make it?

 

You can’t without a well-written business plan. Designing one gives you and your personnel a roadmap for building a successful business.

 

The first step to creating a well-written business plan is knowing what to put in it and how to write it.

 

Executive Summary

 

This is an introductory page that details all the main points that are covered throughout the entire business plan.

 

The idea is to give yourself and anyone who reads it a quick yet detailed and concise overview of what are the main sections covered in the entire business plan.

 

Company Overview

 

This is simply a profile of your company that covers basic information like where you’re located, your business as a legal entity and structure, what type of business it is, when the business was formed, and its primary means of doing business.

 

Operations Plan

 

This needs to cover the organisational processes the business will use to achieve its daily outcomes, and therefore, long-term outcomes for success. It needs to cover all the important points regarding how the business will function including physical set-up and any responsibilities, and desired outcomes for each task.

 

Marketing Plan

 

Without a marketing plan, you won’t succeed. Plain and simple.

 

You need to have a clear idea in mind how you’re going to generate new leads for the business and turn them into customers. You need to detail how you’re going to track and measure the success of each method as well.

 

This section should not just discuss in detail the specific promotions and strategies you’ll use to get new leads and customers. It also should cover areas like positioning, how you’re different from your competitors, what you stand for, what you’re against, and what you want to be known for.

 

These are the hallmarks of any solid marketing plan.

 

Competitive Analysis

 

Here is where you do an in-depth analysis of your competitors. You need to look at their strengths and weaknesses, which will potentially uncover clues as to how you can position yourself in the marketplace.

 

Once you do this, you’ll be able to work out how to get a competitive advantage over your competitors.

 

Management Team

 

You need to provide detailed information on who the key personnel are in your business. Look at what they’re good at, what they’re not good at, and how they can help you execute your business’s objectives, both short and long-term.

 

This will allow you to see w what areas you’ll need to hire employees in to cover any gaps.

 

Financial Plan

 

This part is about emphasising from where the business will generate its revenue. This is a very important part especially if yours is a start-up that will pitch to investors for funding.

 

This should cover all areas of finances such as:

  • How much funding you have to start the business.
  • How much revenue you expect to generate per month.
  • How you plan to use profits.
  • Expenses for running the business.

And much more.

 

It should also include both short and long-term financial projections.

 

Products and Services

 

Elaborate on the specific products and services you’ll provide. Explain the ins and outs ofeach of your products or services so anyone who is unfamiliar with them will instantly understand what you offer.

 

Explain how each product or service works, why they work, and also why customers will want to use them over the competition.

 

Market Analysis

 

This crucial part of your business plan involves careful analysis of the market you’ll be operating in. Ideally, this should be presented in the form of graphs and tables so everything is easy to understand.

 

This is where you define the specific customer you’re after. You’ll need to create a customer profile that details demographics and psychographics of your target customer. You can also include here why your products or service are perfect for this specific customer.

 

Appendix

 

This is the overall summary of your business plan. Everything you have written so far should all come nicely together at this point in the business plan. You’ll want to include financial projections once again, balance sheets, cash flow statements, resumes of key team members, and more.

 

It needs to be a persuasive and convincing document that supports the rest of your business plan.

 

Closing

 

As you can see from this post, a well-written business plan is a comprehensive document that serves as a crucial part of your business’s foundational backbone. It’s a vital part of the research and fundamentals for building a successful business and every serious entrepreneur needs one.

 

With a well-written business plan, you will be able to show investors a persuasive document that demonstrates your business’ credentials, if you seek funding. Even if you’re not seeking funding, a business plan is a great way to keep yourself organised and on point as you move through the process of getting started.

It will give you confidence to move forward and it will outline a well-defined roadmap as you continue to build your business. Without a clear destination and path in mind, you can’t hope to get there.

If you’d like to speak with a legal expert in this area, then get in touch with us today for your free quote.

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