How To Write A Business Plan Step By Step Guide

Below is the step by step guide on writing a business plan. An entrepreneur must follow these 7 steps to write a successful business plan for his / her foreseeable business.

A business plan is a written document that describes how to perform your business ideas practically and how to achieve goals and targets to accomplish business ideas successfully. Because, it is the Framework or Roadmap to achieve your goals and turn your dream into reality.

There are 7 important steps in writing a business plan:

1. Executive Summary

It is a short summary of the whole business plan for which purpose the business is established.  The Executive Summary tells the outsiders about the whole summary of the business ideas and how effectively the business will go to achieve its goals.

Executive Summary has great importance from the point of view of investors. They always invest in that company who has attractive and willful plans for the business. Therefore, business executive must be good enough to convince investors and outsiders to take interest in the business of the entrepreneur.

2. Company Descriptions

Company Description is basically the introduction of company itself. What is the Name of Company? We study about Company’s History, Mission Statement, Vision, Objectives, Products and Services, Ownership Status and other information related to start-up of the business.

You may also be interested in Types / Kinds of Start-UP Entrepreneurs

3. Industry Analysis

In industry analysis, the entrepreneur focuses on selecting the categories of products or services and the profitable location of the business in which it is established. In online world, it should be the valuable and profitable business suited to the skills and passion of the entrepreneur.

Such business may be long-term and sustainable and may be short-term and not sustainable. For, the entrepreneur should decide to choose such niche or category of products or services which can survive for long period of time and it should have value for its customers. In offline world, industries include toy industry, Textile Industry, Manufacturing Industry and so on. While in Online World, examples of industries are Blogging, Freelancing, Video Makers, Graphic Designers, Web Developers, PHP Developers, SEO Experts and so on.

4. Market Analysis

In market analysis, the entrepreneur should target those segments of markets in which he / she wants to focus and target and believes that those niches of the markets can give value and get good returns from the customers. A Shoe industry may target young men and women and provide quality products according to their needs.

While making market analysis, an entrepreneur must make strategy to compete with his / her competitors in a healthy competition. An entrepreneur must learn from his / her competitors and provide better and unique products to benefit the business, customers and whole society.

5. Hierarchy of Management

Hierarch of management includes founders of the entrepreneurship and key management of the business. Founders of the business are the leaders and management of the company are those who run the business on the basis of the rules and regulations set out in the legal documents of the company.

The management of the business should be competent and talented to cope with difficult situations especially, the start-up of the business. Qualities like Consistency, Discipline, Unity, Hardworking and Honesty play an important role in this regard.

Founder of the entrepreneurship should ensure fairness and justice in the management of the business, especially in the lower management or operation management level. He / should be good leader that turns the table and gain success in the life of the business through his / her personalities. He / she should set an example that other follow him / her and contribute to the business with their better efforts at the end.

6. Product or Service Development Plan

An Entrepreneur must provide the details of Products and services to his / her ultimate customers. The price of goods and services are mentioned alongwith quantity of goods produced in different phases of product life cycle is also clearly explained.

The packaging, layout, design, labels, tastes and quality of products can attract the customers. So, products and services must be good enough to capture customer value and entrepreneurs gets good return from customers.

7. Financial Projections

All the business should be expressed in form of financial terms to check out how effective and efficient this business plan is? We have to prepare budget and Projected Financial Statements to make strategies for running and sustaining the business in the long run.

To make financial projections, projected financial statements are made. Different types of Financial Ratios and their Formulas are calculated to analyze and give insight the Financial Performance and Financial Position of the business to Users of Financial Statements.

So, these are the important steps to make your business Plan effective and efficient in order to run and stabilize the business for long period of time.