Keys to draft a solid Business plan.
For any business or startup, a business plan is inevitable. It is essential for their business growth. Out of ten businesses, seven businesses fail within a few years due to a lack of a solid business plan. We are aware that you are starting a new business and as being an Entrepreneur you always dream of climbing ladders. To keep you on the positive path and help you with getting started with a solid business plan we came up with this blog on “ Keys to draft a solid Business plan”.
Every venture starts with a ray of hope of being successful, but very few achieve it quickly, few achieve it a bit late and some fail in achieving it. We know how important your business is for you and your business partners. Business growth is a long-run process which involves various strategies, financial planning, management, research and above all a solid business plan. A solid business plan is like a seed in the growth of your business.
Before we head into our today’s topic of drafting a business plan there is a much need to understand what exactly we mean by a solid business plan.
What is a Business plan?
In layman's terms, a business plan is a document containing every crucial aspect of a company drafted in it. More specifically, it is a planned action of steps that addresses the business operations. It covers information like what product or a service you sell, who is your target audience, the market size, your vision or approach towards sales, investment details, revenue flow, and other core aspects. The major purpose of a Business plan is to attract investors for funding their ventures by providing each and every business detail involved in the organization, but it also helps you to walk on the right path.
To implement a business plan there are few areas where you need to have a perfect approach towards the challenges as these are key factors that an investor looks for in any business plan. Let us brainstorm a few of them to make sure you deal on the right track.
● What is the problem your product or service is addressing?
● What is your unique selling point (USP)?
● What is your current market size and expected future market size?
● Who is your target segment?
● Is there any existing competition in your niche?
● How do you compete with your competitor?
● What is your Business revenue model?
● What is your break-even point?
● How long does it take to be profitable?
These are a few major questions you and your team should be answerable while drafting a business plan. Moreover, there are hundreds of industry-specific questions which you can include according to your business needs and we hope you got the whole idea in a nutshell by now.
Why and when a business plan is necessary?
Generally speaking, a business plan is the soul and heart of any business ecosystem. It drives the entire process as planned accordingly. It is a detailed framework of your goals as well as a plan of actions to achieve the possibilities. A business plan is not a just documented plan, it is the aroma of a business to attract investors towards them. It is an integral process of selling your business to potential investors or bankers in order to raise more capital.
The right time to write a business plan is before you start implementing your business operations. This is the first step before taking the plunge. As soon as you hit the market, your business plan will be a guide to cater to your goals. As we all know only the right implementation can deliver the right goals. All your business partners and executives should be involved in this entire process to yield quicker results.
A step by step guide to draft a solid business plan
Step 1 : Your vision
Introduce your business name and describe your core vision, your team, and the values that drive you.
Step 2 : Your mission
Mention your mission statement, your business goals, and how unique your business approach towards customer retention.
Step 3 : Brief your product or service
Your product/service is the weapon to encounter investors' attention. Brief them in as much detail as you can.
Step 4 : Marketing plan
Analyze your market size, research your competitor insights, crackdown your marketing strategies to beat the heat of competition.
Step 5 : Operation plan
Every business needs a holistic operational process to run its business workflow. Note down the sequential process from lead generation to closing sales.
Step 6 : Financial planning
Investors mainly focus on this segment as here you need to forecast your capital and financial investments and cash flow cycle. This will give them a fair idea of funding requirements.
Step 7 ; Business hierarchy
A clear and optimized positional hierarchy is the skeletal structure of the business. It should mention and define the roles and responsibilities of every actor in your business.
Step 8 : Miscellaneous
This is where you add more information about your verticals, the key functionalities, your creative thoughts, and all those which you believe should include impressing your investor.
Conclusion
Alas! roll up your sleeves now and pen down all your thoughts and actions on paper. Remember that you can always reiterate your business plan to make it more effective before you hit the ground. Now it’s time for you and your team to sit down and start your drafting.
There you go!!