Step by Step Guide to Write a Winning Business Plan (2023)
Talk is cheap when it comes to putting everything together to start a business. Every business owner needs to face the fact that starting is the first hurdle you must cross to establish a business whether online or offline.
One of the first requirements of starting as experts and business analysts recommend is writing a winning business plan. A business plan leads the business. Some have named it the roadmap to success while others see it as a life project that guides and oversees the day-to-day running of the business.
There is a lot to describe what a business plan is and the benefits are timeless to the operation and administration of your business.
Recommended: 7 Reasons to Have a Business Plan for Your Business in 2023
How Do I Write a Business Plan?
Writing a business plan can be a daunting task especially if you are a beginner in the entrepreneur world. The first thing you want to do about it is see what a business ally looks like. You can click here to view hundreds of business plan templates you can glean from or adjust to create one for your business.
In this article, I will show you how the step by step guide on how to write your business plan. Each step clearly states what must be included to get the plan right at once.
Step By Step Guide to Write A Business Plan
1. Write an Executive Summary
This comes second in the format of your business plan yet it is what you write last. It introduces your business but is not an introduction. It immediately defines your business and provides critical information, goals, and objectives. It gives the ‘juice’ of the business.
It must be written to grab the reader’s attention to lure them to read the following details of the business plan. Have it in mind investors and lending donors takes this section of your business plan most valuable.
If it doesn’t hint them what the business stands for, you may not have a second chance to get approval or any positive outcome. You might need to see the full details of an executive summary for your business plan.
2. Describe Your Company
After a clear executive summary, then you describe your company. This is where you give some specifics of your company which include the registered business name, the address of the company, what you do or sell, your target market, company structure, ownership, and management team, the company’s vision, mission and work values, and a brief history of the company.
Describe the company clearly and concisely. It should not be full of repetitions, but the key specific information about the company. It should have a tone of passion and excitement that thrill readers to acquaint themselves with your company.
3. Highlight Your Business Goals
What is a business goal? Business goals are the identified needs and wants of your business. you may desire to top-of-the-mind awareness amongst the target market, get 25K subscribers in a month, or want to be classified as a bestselling author.
This section of your business plan is strictly to identify what you intend to accomplish in the short and the long term of your business. Business goals can be classified as numbers based, tangible, or intangible. The key is to state exactly what it is and how it helps the business’s overall vision and mission.
4. Describe Your Products and Services
Although you will have to talk about your products and services in different areas of your business plan, you need to provide an exclusive section for it. You will go into detail about the products and services you offer. You should also include the pricing model, the sales strategy, supply and distribution strategy.
5. Perform A Market Research
Thorough market research is very valuable to the authenticity of your business plan. It is a matter of stating the facts the way they are. In this section, you provide details of the market analysis: the competition, what is obtainable in the market in your product/ service category. You should also include the unique selling difference of what your business offers from the competition.
6. Describe Your Target Customers
The best way to describe your target customers is to perform a customer segmentation. Your target customers are the backbone of your business. So, for every decision you will take, it should revolve around them.
When your target customers are in categories, use a representative for each. Provide their demographics i.e. age, gender, education, location, and psychographics i.e. buying habits, preferences, beliefs, etc.
7. Draw Your Marketing Plan
Knowing your ideal customer enables you to strategize with the best marketing plan. The marketing plan focuses on how you will persuade target customers to buy your products or services. The plan is subject to what will attract your customers. If you will use TitTok marketing, for instance, you must be sure it is a leading channel for your target customers. The idea is to narrow down your search and stick to what works or will.
8. Make A Financial Plan
Your business lives and breathes on finances. Without a healthy financial plan, it is only expected the business will fold up. Hence, you should take the financial plan of the business seriously. As a new business, you might not know the financial analysis of the business but you can determine the financial projections and plan towards it.
The financial plan involves three basic aspects: an income statement, a balance sheet, and a cash-flow statement. You might need to involve an expert or learn how to do the operations yourself.
Writing your business plan takes some process but it is worth the effort and time. It keeps you on your toes to do what needs to be done and when it should it be done. If you think there is no reason for it, you should rethink the benefits you will miss.
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