A business plan that will not make you WIN is not worth it at all. Is there something as a perfect business plan? Well, yes there is something called a PERFECT BUSINESS PLAN
What makes up a perfect business plan?
- A perfect business plan should be comprehensive, detailed and bring in the right results.
- It should be as very objective and logical as possible.
- It should serve as a blueprint for the business.
- Clarity of business’ vision and objectives.
- It should be able to convince investors & lenders
- Give the business direction
The question is: How do I write the perfect business plan? How do I write the business plan that will make me win?
Let us look at each part of a business plan and how you need to go about thinking through each one to write a winning business plan.
- Executive Summary
- Overview of the Business
- Products and Services
- Market Analysis
- Management Team
- Financial Analysis
Executive summary for business plan
This is more like the most important part of the business plan. Some investors may not have the time to go through the whole business plan in detail. However, they will go through your executive summary. It is also the first part of your business plan. The goal is to use the executive summary to grab the attention of the reader.
Therefore it should be concise but also comprehensive enough to cover all the most vital details. The executive summary should include every other part of your business plan in summary. Start with a hook, something that will make whosoever reading it interested in your business. It is advisable to write the summary last. This is to make sure you have all the available details about the business.
Overview of the business
The overview of the business is a part of the business plan that is very key because it defines the business. You can start with a short description of the industry of your business. This should contain important information about the business like its registered name & CAC registration number, the address of physical locations (if any). You can also add your website or social media handles if you run an on-line business.
Pro-tip: If you are writing the plan for an investor, ensure that the business is registered and you have a website. It shows the investors that you are a serious entrepreneur who is already taking steps.
Names of major competitors. The journey so far; here you can write the history of the company. Type of the business and short details on the products or services that the business offers or will offer. You should provide adequate information on all the various markets (market segments) within the industry. Include any new products or developments that will benefit or adversely affect your business.
There are three important things to note when writing the overview of the business:
- History of the business
- The mission statement i.e this is the vision and mission of your business. For example, we can have To create an environment where business owners can feel comfortable. Your vision and mission should be easy to understand.
- The objectives of the company
If you are just starting your business, then it may not be easy to input the history of your business. Think of the following:
- The problem you are solving
- How many people are having the problem
- Why you are uniquely equipped to solve the problem
- The various materials you need to solve this problem
- Your proposed customers
- Your proposed employees
- The business objectives or goals, both short and long term
Description of products & services for business plan
Every business is solving a problem, this part of the business plan answers the question:
How are you solving the problem?
What are you providing to solve the problem?
For example, there is a problem with transportation so you are providing cars to solve the problem. Or small businesses are finding it difficult to sell their goods to people in other regions, and you set up a business to provide the logistics of delivering those goods for small businesses.
What makes your product special?
This is something that distinguishes it from other products created for the same purpose. Be detailed enough but make it comprehensive.
Market analysis for business plan
The market analysis is simply how you intend to sell the product/service to the target audience. You should not leave any stone unturned in your market analysis, it should include every part of the following:
- The market size – This is the population of your intended audience
- Overview of your competitors (Your competitive analysis; What are your competitors doing, how are they doing it, their pricing, strategies and so on)
- How do you intend to gain a good share of the market size?
- SWOT Analysis(Strengths, Weaknesses, Opportunities &Threats)
- Pricing Strategy
- The Product (Where will you sell your products, Promotions, etc.)
Strengths – What are the best things about your company?
Weaknesses- What is your brand not very good at?
Opportunities-What market or industry shifts can you take advantage of and turn into opportunities?
Threats – What are the external factors (factors beyond your control) threatening your ability to succeed?
Your Market Analysis should be supported with research, especially for investors because they want to know how you got to the conclusions you have made.
Operations include everything you need to make the business a successful one. This part in your business plan is more important to you than external readers though it gives the readers the notion that You understand the whole business process. . The following should be covered in this area of the business plan:
- Raw Materials – What are the materials you need to get the business started?
- Suppliers – Who will supply these materials to you? Your key suppliers.
- Production- What is the production process going to be like? Who is in charge of the whole process? Where does it start and where does it end?
- Facilities. Your location can be either physical or remote.
You can also include the pricing for each of the raw materials/equipment in this part.
People matter, we all need people. You are starting a business but you need people to make it go smoothly. This is where you put in these people. You can include their roles and responsibilities, a short bio about them. Basically, something that makes them fit for the role. Use an organizational chart (organogram) to lay out who’s in charge of what in your company. Display how each person’s unique expertise will contribute to the success of your business.
Financial analysis for business plan
If you are writing your business plan for investors then you have to look into this part well. People want to work with a business they know will be viable for the foreseeable future. This aspect should include;
- An income statement: This includes what you have at this point and what you spend on. Your income and expenses.
- A balance sheet: This is a matter of what you own (assets) versus what you owe (liabilities)
- Financial Projections: This includes your assumptions, what you foresee as regards sales. Be very practical here.
Writing a business plan is very sacrosanct to any business or brand, this is an easy guide to help you make it very easy.