A business plan is one of the most important documents for every small business. A precise business plan is required to start a new business and also to manage the existing one. Business plans need to keep changing as per the change in the market and therefore, they must be updated regularly. A business plan is majorly used for obtaining a business loan.
A properly drafted business plan clearly explains all aspects of a business. It also has to be accurate in case it is required to be submitted to a lender. You can also take help from a professional.
A business plan should include the following:
About your team
Information about the team like founders of the small business, the hierarchy which is followed, all the executives’ details (education background, work experience, skills), team size, etc. covers all the answers to any team-related questions.
You should include a section wherein you describe how your team adds value to your business.
Business Objective
Setting the business objective is an important detail of the business. The business owner should know what the objectives of his business are and what it strives to achieve in the next 2-3 years. This section should include the milestones to be achieved in the next few years, milestones achieved in the past which tell about the potential of the business is very important.
Business summary
This will include details of the business like the start date, vision, and mission of the company, information related to the products and services offered by the company, certifications & awards received by the company, etc.
Summary of the existing problems with solutions
You can add information about the problems of the business and the methods you are adopting or will adapt to solve them.
You can have two sections problem and solution. In the problem section, you can tell about the problem you are trying to solve, the problems which your prospective customers are facing and how are they being addressed.
In the solution section, you can give solutions to all the problems faced by customers. You should also discuss why the customers would choose solutions given by you. You can even include some examples of customer issues and how you resolved them.
Market study
Knowing about the market in which your business functions is very important. Include the B2B & B2C models of your business and the size of the market you want to address and the market share of your business. This would help in initiating revenue potential and the growth potential of your business.
Competitors
Competitors make an important part of a business and part of the market who can take away your customers. There should be a section in the business plan explaining how you would deal with them or have dealt with them.
Describe the largest players in the market who are operating in your area or field, your competitors, how do you differentiate yourself and the products and services you offer from them. You can give this information with SWOT Analysis (strengths, weaknesses, opportunities, and threats of your business and competitors.
Financial study
This will include the financial performance of your business and the financial projections for 3 years. These statements would include profit, sales and the balance sheet of the 3 previous years.
If you want, you can even include the amount of investment or a required loan. How the additional finances would be invested, shareholders of the business if any, and financial ratios like the debt to equity, current ration etc, can also be included.
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