How to Write A Business Plan 101
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More than 30% of world’s population is involved in business and this number is increasing day by day. The freedom of choosing the work for yourself and the freedom of working flexible hours is very attractive.
But this attraction is not enough to run a business as it will be very a demanding job.
A business need to be planned carefully before any investment in time or money. There are factors that if neglected can lead to a loss and will leave you unmotivated. This is why a business plan the most important thing to do before starting a business.
Maybe it’s just me, but I don’t believe in waiting. Analyzing the important factors does not have to take weeks, months or years. You do not have to wait until you have a 30 page document before getting started.
Trust me I know, I’ve done loads of business plans at college and university. I stayed up late and probably stretched out about 6 months working on each one. I got 100% full marks and A-grades on business planning, but did those business plans make me money?
Honestly, back then I didn’t have my entrepreneurial hat on. Academics is important, but here’s what is even more important… Getting out there and actually doing the work makes you money and EVOLVES your business plan.
So let’s see how to write a business plan in 5 easy, yet vital steps:
What Type of Business Will You Run?
So the first step towards your successful business is to decide what kind of business. Look for an opportunity. Will your business be offline or online?
If its offline and you intend to sell a product then see what is in demand by people around you and the availability of that product.
If its online use SEO tools and research the competition and the number of global monthly searches on the topic. This will give you the best topics and ideas before starting.
What Products Will You Sell?
Think about your product details and see if it’s profitable to buy and resell or produce your own from scratch. You may need to consider outsourcing some tasks to increase efficiency.
What Is Your Vision?
After you have selected an idea start off with the company description. The company description outlines vital details about your company, such as where you are located, how you will use your skills and experience, what your purpose is and what you hope to accomplish.
Product or service description, in this section you have to describe what product you are selling with the main focus on the value of that product in the people’s lives. You should definitely write up a unique selling proposition (USP).
Have You Thought About Money?
Now when it comes to the investment, you already know that businesses must make money to survive. Everybody starting a business would love a never ending cash flow from the business! Thinking this way is a great positive mindset. However, in reality it takes time for a business to generate money and you be making a loss when you first start. Start by listing out what you think the main expenses will be (e.g. rent, materials, equipment and insurance).
A vital tip is to control expenses and cut down on costs as much as you can in the beginning. When you plan ahead with the cash flow expenses you will have a clearer vision of how to increase your income over time and make a profit.
Starting your own business will be a very beneficial stream of earning money if planned with dedication. Even investors and the banks trust this stream when planned thoroughly. Many people and banks are investing in businesses all over the worlds without hesitation.
Next you need to plan how to manage the invoicing, finances and record keeping. You will need a system for bookkeeping and saving all of your receipts to monitor your cash flow.
How Will You Enjoy Marketing & Advertising?
Marketing can be a fun and creative part of the business plan. It is also important to consider how you will introduce people to your facilities and business. Analyze the market to understand what kind of marketing will be more effective in your area.
For example, will you post your advertisements online? Or would it be better to hand out flyers in your local area? Nowadays every type of business can benefit from online marketing in at least one way. Do you know how quickly you can get an affordable website up to showcase your business?
You can use this great resource for more marketing ideas visit:http://www.entrepreneur.com/article/43026
Do It Now!
The above steps are intended to help you make a business plan for your business idea and take action now.
Instead of waiting… get a piece of paper and start jotting down your ideas to each of the questions and points above. This will make the path easier for you to reach to success!
A business plan is not an academic essay to write up once and keep framed, neat and tidy. You use it to keep improving, get it dirty, maybe there’s some spelling mistakes, maybe the layout is ugly, but so what? This is real life. You’ll keep evolving and adding to it as you build your legacy long-term. This is what I do now with my ‘real’ business.
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