There aren’t many entrepreneurs who set up their own businesses and decide to write an enterprise plan for use. This is definitely a mistake since a properly written business plan, along with a high-quality logo designed using Turbologo is an indication of the business and help you organize costs and run the business.
Does your business require the help of a business plan?
Anyone who is looking to establish their own company and active entrepreneurs mistakenly believe that a business plan was designed to meet the requirements of potential investors or for trying to raise funds for your own company. In reality, a business plan is an effective instrument for the entrepreneur. It will help him identify the company’s goals and devise a strategy that will help him reach these goals. The business plan may serve many purposes:
- Planning is the process of determining the scope of the goals that are established by the company
- Controlling allows the analysis of the goals set and the results that have been achieved. It allows you to determine whether the business is meeting its objectives;
- Informational – It can be a resource of information for lenders, investors as well as business associates.
The structure of a plan is largely determined by the reason for which it is designed. It can take on the form of a business plan when it is intended for the benefit of the entrepreneur or for a specific purpose, and another for when it’s to be given to a bank or a potential investor. It is nevertheless easy to discern the basic elements which every business plan should include.
The structure of the plan for business
Project description (summary)
It is the most significant component that should be included in the overall business plan but it is crucially, it must be composed at the end , after all the components have been completed. The executive summary should be designed in that it entices the prospective investor to read the entire document. It must grab the attention of an investor in a single sentence.
Make sure you write down in addition to that, the reasons why your business strategy was formulated decide on the amount and distribution of material, financial and human resources, and provide the primary information as well as financial metrics. Additionally the general description of the services or products as well as the entrepreneurial skills and experience or the resources needed to implement the plan must be mentioned. It is also important to mention the advantages that the company has over its competition, and so on.
Characteristics of the company
This section contains information on the company, i.e. its name, the legal format in which it operates or will be operating as well as address details as well as a short introduction of its founders, and a the history of the company. It is a good idea to display any awards, distinctions or certificates that the business or its owner holds. It is also important to outline the mission and purpose of the business.
The characteristics of the company
It is essential to describe the main idea behind the business, as well as an explanation of of its business (depending on whether it’s an enterprise that provides services, manufactures selling and sales, etc.). The product is described by an explanation of its functions and the way it is different in comparison to other goods. It describes how it is distributed and the technology employed in its manufacturing.
It is also important to identify the owner’s copyrights, trademarks, and patents. The same goes for the types of services offered should be stated.
- The persona of their recipients should be identified;
- Differentiating characteristics of these services from the market
- Their value for the customer.
Internal setting (employees and managers)
The success and strength of companies is determined by the people. Thus, it is worthwhile discussing here both the qualifications of management and employees and organizational structure, as well as the methods of motivation and remuneration of employees, the division of responsibilities and the learning system.
Environment outside (market analysis)
The section on the business plan outlines the conditions that the company operates in. What market is it operating in (it is important to analyze the behavior of this market, its and trends, its development and its segmentation). It is also essential to determine and define the competition within the market. It is also worthwhile to analyze and defining the traits of potential customers (why they are attracted to the service or product and what their needs are as well as.). This section will be able to perform a SWOT assessment (an study of your strengths of the company, its weaknesses, opportunities and threats to the market; it could be an entirely distinct section in the business plan) and sales forecasts, which will provide the anticipated size of market share, and identify the obstacles to entry in the market.
Marketing, advertising and sales concepts
The first step is to define your planned advertising strategies and campaigns, a budget for advertising ways to reach customers, distribution strategies and price discounts, ways for obtaining business partners etc. Planned ways of paying, and after-sales service. Analysis of financials
This is certainly among the top crucial aspects of the company plan which will determine the outcome of the whole project. It must include the plan for investment along with expected sales of products or services, as well as the expenses that must be incurred in order to reach the goals.
The financial analysis must comprise:
- A balance sheet
- Account for profit and loss;
- Statement of cash flow;
- Break-even analysis;
- The list below includes fixed assets.
The schedule of events
It is important to plan the activities schedule in depth because only the complete realization of the stated objectives in accordance with the approved program of actions will permit them to be carried out. It is expected that the plan should be created for at least five years. It is essential to outline the goals of the business as well as the deadlines expected for their achievement in addition to identify the best ways to accomplish the goals and to anticipate aspects that might influence their achievement.
Each business plan should be accompanied by a variety of other documents, including the findings of market research, job descriptions agreements signed by executives, CVs or patents, an inventory of the institutions that finance the ventures of the entrepreneur and other ventures.
Conclusion
A business plan isn’t an encyclopedia’ , but if it has valuable information. It is not necessary to be boring, because then nobody would want to read it. A business plan is an outline and an compass that shows the correct path and direction to development. It’s a document that outlines your business and outline strategies to accomplish your objectives as well as an evaluation of their efficacy.