What is a Business Plan and How to Create One

Many people say that in order to succeed in whatever you want to do, you must have a plan. In business, that’s also correct. For start-up and expansion of business, you need a business plan. By definition, this plan that we’re talking about is just a document. Yet it’s very powerful for your business. This where your business’ future plans and how you can achieve them are written. Without it, you’ll be walking in a maze without a map. You won’t ever find the finish line.

A business plan will serve as a guide in your every decision for your business. Think of it as a cheat sheet or a road map. From marketing and finance to operations and product/service details, you’ll have greater clarity in all business aspects with it. Also, if you want to attract investors on your business, they are definitely going to want to take a look at this plan.

Sounds like it’s a must, right? But how do we create one? Can’t we just write everything we have in mind for the business? Probably. However, if you want something that works

Here’s How to Create a Business Plan in Order

  • Business Summary – This is where you introduce your vision for your company. To create, try to answer these questions to form a paragraph:
  1. What’s the field of your business?
  2. What are your products or services?
  3. Define your target audience or market?
  4. As the owner of your company, write something about yourself? Do you have experience with the industry that you’re taking? Or any background information about you?
  5. How did you come up with the company? Your motivation?
  6. In the future, how do you envision your industry?
  7. Is you company scalable? How?
  8. What are your next steps for the company?
  • Your Mission – This is where you write your company’s mission. Keep in mind that this one should be shared with your audience and employees so better sway from thinking of just making a profit. It should be empowering. You should write the company’s objective, goals, strength, and how you want to see it evolve. Also, remember to keep it short and simple.
  • About the products and/or services On this part, it’s all about your products and/or services. Write this part like you are selling your business to someone else. You want them to see all the details that your products and/or services can do, what makes it better than others, how clients can avail, cost to produce, how much it can be sold to the market, etc.
  • Your Marketing Plan – The next part is where you will write about your marketing strategies. For instance, like how your products will reach your target market, where it will be sold, where it will be advertised, distribution strategy, its face (slogan, logo, image), etc. Before you can create this part, you have to know how to create a marketing strategy.
  • Operational Plan and Management Hierarchy – This where you need to explain the process of your company. It’s day-to-day and everything such as location/logistics, inventory, transportation, legal stuff, suppliers. And then you must also supply the hierarchy of the people involved with the business including their position and a brief description of their job.
  • Fiscal Planning – This part is probably investors’ favorite if they are to check your business plan. This is where analysis such as cash flow, profit & losses, and break-even is located.
  • Addendum – This is the last part. Anything that you want to include that doesn’t suit the previous categories should be in here.

Truly, writing a plan is not an easy task but is crucial for your business. But remember, through this, you can attract investors, organize your team, and most importantly, you’ll be able to see where your business is going.

See Also: WRITING A BUSINESS PLAN

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