Before starting any
business, planning is an important process and creating a written business plan
is an important part of this process. Business Plan A map of your business is a
map or a blueprint that includes general information about your business, business
goals, and how to achieve those goals. Business plans not only work as your
guide, but are also important for many important tasks like Bank Loan, Startup
Funding or Business Partneship.
It is very important to
create a business plan for almost all types of business loans, otherwise banks
can refuse to give loans.
What is a business plan?.
Before any work, it is
planned. The same thing applies even to Business where the written form of this
plan is called Business Plan. Actually the Business Plan is a document that
answers all questions like 'What', 'Why' and 'How' of a new business. like :
- What is our business?
- Why do we want to do this business
- How do we do this business?
All of these questions
are answered by the Business Plan. The Business Plan is primarily for the new
business, but any current business is doing something new, even then Business
can be stepped up by creating a Business Plan. Business Plan does not just make
Start-up but also Established Business. Periodically, changes in the business
plan can also be made according to the circumstances.
Why Business Plan is Created:
You can imagine what is
the need to create a Business Plan. Through its Business Plan, the businessman
clearly states what he is trying to achieve in writing and the goals of his set
goals. Business plans or business plans are very important for the following
purposes: -
- Applying for a Business Loan in Bank
- Fund raising in other ways such as Venture Capital Firm
or Crowdfunding for your Small Business or Startup
- Applying for any type of subsidiary or any scheme
related to business
- Business Partnership and Franchisee etc.
A well-made business
plan is not only easy to get funding or finance from the bank and other
external sources, but it is also helpful in the internal operations.
How to Build a Good Business Plan
Any planning is done
very thoughtfully. The same thing applies even when building a Business Plan.
Before starting any business, the plan is prepared as a Business Plan. Therefore,
a few things are taken care of before making a good business plan. The major
ones are:
- What is the Core Objective to build this Business Plan?
- Business Plan is being made for the people. Indeed,
those who read this are Investors or Bankers whose money is invested in
business?
- What's included in your Business Plan?
- Do you want a brief or detailed Business Plan?
When these questions are
answered then a businessman starts making his own business plan. Focus is done
on any of the following topics, in a successful and clear Business Plan.
1. What is the purpose of business-
A well-designed Business
Plan can tell the objectives of any business. Through this business plan, the
businessman has made plans for his future, it is revealed. What will be the
benefit of business people for these purposes, details of which are also carried
out from Business Plan.
2. Explanation of clear description of business -
Through the Business
Plan, full description of any business unit is found. Through this Business
Plan, another person learns how you started your business and what your purpose
is.
3. What are the business products and services -
While designing a
business plan, a businessman can decide which type of products he has to
produce and what services he has to offer.
4. Assistant in Market Analysis -
When a businessman
creates a business plan, he also markets Market Analysis before him. This
analysis can only be addressed about future benefits and disadvantages.
5. Business structure details-
In any commercial
framework, its employee and managerial capacity are known. Building Business Plan
also addresses the business structure.
6. Use of resources-
The best means of any
business unit is the time spent on it and the businessman. When developing a
Business Plan, you have to decide how to use both of these important resources.
7. Targeting Determination -
It is important to
determine the goal of doing any work successfully. When creating a Business
Plan, determining business goals becomes simpler.
However, there are no
fixed formats of any Business Plan and are made in different ways as per
requirement. Typically a Business Plan consists of the following parts.
business background:
In this part of the
Business Plan, all the information related to your business is written in
detail such as
- Nature of Business
- What would you sell - Product or Service
- What is your target market
- The Legal Structure of Business means that businesses
are single, partnership or company,
- Staff and Management Team,
- Business location
Apart from this, all the
things related to the product or services of the business are written in detail
in this section such as: -
What problem are you
dealing with your product or services, or what are these people coming to do?
- How much are your product or services different from
others?
- Why people will buy your product
- How do you create your product and what is the best way
to do that?
- Have you registered the product and services of
Trademark, Patent etc.
- Product / Service Description can also be shown in
different parts.
Market analysis-
In this section, all
important things related to the Target Market of your product or service are
analyzed like: -
- Target Market, Market Size and Deemand
- Who will you sell - Target Customer, Their Behavior,
Class and Purchasing Power
- Who are your competitors and how much market share they
have, their strengths and weaknesses
- Significant changes in Demand and Market in the future
Market strategy-
This part of the
Business Plan is considered very important. This section describes all the
policies that you want to use to bring your product and services to the
customer and use for Market Promotion. Under this section, you have to
determine the following: -
- How to make your place in your product or service
market
- Who are your target customers who will first show
interest in your product or services and how you will reach them
- What will be your pricing policy
- How would you promote your product or service like
Direct Marketing, Advertisement Social Media etc.
- How do you deliver your products or services to the
customer - Distribution Channel
- What will be your Selling Strategy?
Modus Operandi-
This is an important
part in which there are detailed information about all the things related to
Business Operations that means "how the business will work" such as:
- Business Place - Where will you do your business? Will
you buy or rent a place?
- Production Facility and System - What type of
production facility do you have and what are the requirements.
- Purchase Plan - How would you buy your Inputs and this
is the best way
- Production Plan - How you will produce your product.
Based on the basis of Deemand or Estimates.
- Workforce Structure and their roles - Your employees'
posts, scope and their responsibilities
- Systems and Information Technology - What's the main IT
system for your business
- Store Facility - How much stock will you keep and
where?
Financial Planning-
Financial Analysis is
the most important part of any business plan because this section presents all
the important things of your business and the projection in Figures or Numbers.
From this part, the bank or venture firm knows the financial position of your
business and the need for capital, depending on which banks lend and invest in
Venture Capital Firms. This part mainly focuses on the following:
- How much capital or fund you need for business and
where to use it - Capital / Fund Requirement
- How do you raise this capital - Loan, Venture Funding,
Crowd Funding, Own Capital etc.
- How long will you take a loan, what will be the
security of it and how to repay it
- What Are Your Business Revenue / Income Sources -
Sales, Other Incomes
- What will be your Exepnditure of Business - Purchases,
Interest Payment, Rent etc.
- Profit & Loss Forcast for the next 3-5 years on the
basis of Sales, Revenue and Expenses
- Your Business's Growth Forcast
- Business Risk and its possible results
Important Statements of Financial Analysis / Forcast-
- Capital Requirement and Sources of Capital
- Sales Forcast of 3-5 Years
- Profit and Loss Forcast of 3-5 Years
- Cashflow Statement
- Balance Sheet
Business Plan is the
most important document in your business that guides you continuously to pursue
your business. Therefore, it should be very careful in its construction.
Before starting any business, planning is an important process and creating a written business plan is an important part of this process. Business Plan A map of your business is a map or a blueprint that includes general information about your business, business goals, and how to achieve those goals. Business plans not only work as your guide, but are also important for many important tasks like Bank Loan, Startup Funding or Business Partneship.
It is very important to create a business plan for almost all types of business loans, otherwise banks can refuse to give loans.
It is very important to create a business plan for almost all types of business loans, otherwise banks can refuse to give loans.
What is a business plan?.
Before any work, it is planned. The same thing applies even to Business where the written form of this plan is called Business Plan. Actually the Business Plan is a document that answers all questions like 'What', 'Why' and 'How' of a new business. like :
- What is our business?
- Why do we want to do this business
- How do we do this business?
All of these questions are answered by the Business Plan. The Business Plan is primarily for the new business, but any current business is doing something new, even then Business can be stepped up by creating a Business Plan. Business Plan does not just make Start-up but also Established Business. Periodically, changes in the business plan can also be made according to the circumstances.
Why Business Plan is Created:
You can imagine what is the need to create a Business Plan. Through its Business Plan, the businessman clearly states what he is trying to achieve in writing and the goals of his set goals. Business plans or business plans are very important for the following purposes: -
- Applying for a Business Loan in Bank
- Fund raising in other ways such as Venture Capital Firm or Crowdfunding for your Small Business or Startup
- Applying for any type of subsidiary or any scheme related to business
- Business Partnership and Franchisee etc.
A well-made business plan is not only easy to get funding or finance from the bank and other external sources, but it is also helpful in the internal operations.
How to Build a Good Business Plan
Any planning is done very thoughtfully. The same thing applies even when building a Business Plan. Before starting any business, the plan is prepared as a Business Plan. Therefore, a few things are taken care of before making a good business plan. The major ones are:
- What is the Core Objective to build this Business Plan?
- Business Plan is being made for the people. Indeed, those who read this are Investors or Bankers whose money is invested in business?
- What's included in your Business Plan?
- Do you want a brief or detailed Business Plan?
When these questions are answered then a businessman starts making his own business plan. Focus is done on any of the following topics, in a successful and clear Business Plan.
1. What is the purpose of business-
A well-designed Business Plan can tell the objectives of any business. Through this business plan, the businessman has made plans for his future, it is revealed. What will be the benefit of business people for these purposes, details of which are also carried out from Business Plan.
2. Explanation of clear description of business -
Through the Business Plan, full description of any business unit is found. Through this Business Plan, another person learns how you started your business and what your purpose is.
3. What are the business products and services -
While designing a business plan, a businessman can decide which type of products he has to produce and what services he has to offer.
4. Assistant in Market Analysis -
When a businessman creates a business plan, he also markets Market Analysis before him. This analysis can only be addressed about future benefits and disadvantages.
5. Business structure details-
In any commercial framework, its employee and managerial capacity are known. Building Business Plan also addresses the business structure.
6. Use of resources-
The best means of any business unit is the time spent on it and the businessman. When developing a Business Plan, you have to decide how to use both of these important resources.
7. Targeting Determination -
It is important to determine the goal of doing any work successfully. When creating a Business Plan, determining business goals becomes simpler.
However, there are no fixed formats of any Business Plan and are made in different ways as per requirement. Typically a Business Plan consists of the following parts.
business background:
In this part of the Business Plan, all the information related to your business is written in detail such as
- Nature of Business
- What would you sell - Product or Service
- What is your target market
- The Legal Structure of Business means that businesses are single, partnership or company,
- Staff and Management Team,
- Business location
Apart from this, all the things related to the product or services of the business are written in detail in this section such as: -
What problem are you dealing with your product or services, or what are these people coming to do?
- How much are your product or services different from others?
- Why people will buy your product
- How do you create your product and what is the best way to do that?
- Have you registered the product and services of Trademark, Patent etc.
- Product / Service Description can also be shown in different parts.
Market analysis-
In this section, all important things related to the Target Market of your product or service are analyzed like: -
- Target Market, Market Size and Deemand
- Who will you sell - Target Customer, Their Behavior, Class and Purchasing Power
- Who are your competitors and how much market share they have, their strengths and weaknesses
- Significant changes in Demand and Market in the future
Market strategy-
This part of the Business Plan is considered very important. This section describes all the policies that you want to use to bring your product and services to the customer and use for Market Promotion. Under this section, you have to determine the following: -
- How to make your place in your product or service market
- Who are your target customers who will first show interest in your product or services and how you will reach them
- What will be your pricing policy
- How would you promote your product or service like Direct Marketing, Advertisement Social Media etc.
- How do you deliver your products or services to the customer - Distribution Channel
- What will be your Selling Strategy?
Modus Operandi-
This is an important part in which there are detailed information about all the things related to Business Operations that means "how the business will work" such as:
- Business Place - Where will you do your business? Will you buy or rent a place?
- Production Facility and System - What type of production facility do you have and what are the requirements.
- Purchase Plan - How would you buy your Inputs and this is the best way
- Production Plan - How you will produce your product. Based on the basis of Deemand or Estimates.
- Workforce Structure and their roles - Your employees' posts, scope and their responsibilities
- Systems and Information Technology - What's the main IT system for your business
- Store Facility - How much stock will you keep and where?
Financial Planning-
Financial Analysis is the most important part of any business plan because this section presents all the important things of your business and the projection in Figures or Numbers. From this part, the bank or venture firm knows the financial position of your business and the need for capital, depending on which banks lend and invest in Venture Capital Firms. This part mainly focuses on the following:
- How much capital or fund you need for business and where to use it - Capital / Fund Requirement
- How do you raise this capital - Loan, Venture Funding, Crowd Funding, Own Capital etc.
- How long will you take a loan, what will be the security of it and how to repay it
- What Are Your Business Revenue / Income Sources - Sales, Other Incomes
- What will be your Exepnditure of Business - Purchases, Interest Payment, Rent etc.
- Profit & Loss Forcast for the next 3-5 years on the basis of Sales, Revenue and Expenses
- Your Business's Growth Forcast
- Business Risk and its possible results
Important Statements of Financial Analysis / Forcast-
- Capital Requirement and Sources of Capital
- Sales Forcast of 3-5 Years
- Profit and Loss Forcast of 3-5 Years
- Cashflow Statement
- Balance Sheet
Business Plan is the most important document in your business that guides you continuously to pursue your business. Therefore, it should be very careful in its construction.
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