If you are an entrepreneur, you might wondered that, what is business plan? and how to create best one for your business. so today we are going to discuss exact what our topic says. So, without any further ado, let’s get started.

What Is Business Plan?

Business Plan Is a written document which creates outline of your business and reflects your business activity like how your organisation or you going to do a business.

It shows how your product would be and how you going to market this. It also shows your management process of product or service development to its delivery.

Business plan also reflects the financial metrics of your business like how you or your organisation are going to make a profit. And how your company is going to use the funds which raised or borrowed during time of business.

Business plan also shows company’s goals and its growth prospects over the time.

In short you can say that business plan is a written document that outlines the process of doing business. Which includes financial and managerial aspects of company. And also shows the goals of the company.

How to write a Business Plan?

According to Harvard Business Review a good Business plan must reflect the following three view point.

1. Market (existing & future)
2. Investor (financial or other resource kind)
3. Entrepreneur or Inventor or Producer

Also, according to Harvard business review entrepreneurs often only write about there view point and forget to include the other two aspects of a business plan. Which is market and investor’s view point. Which is a very bad idea although hence its recommended by the Harvard business review team that any business plan must consist all of the three viewpoints.

So, let’s see the points which should be or must be covered in any business plan. And by these points you also going to learn how to write it. So, lets jump in.

Executive Summary:

In this point an entrepreneur can give overview of their company’s basic information and can also discuss its mission and goal.

Organisation and Management:

In this section an entrepreneur must include details about their company and its management and their responsibilities. If you have any mentor or advisor or early investor you must have to share the details about them.

Company’s message in Business Plan:

In this section entrepreneur can convey the message of their product and service. Identify and explain the problem of a potential customer in front of investor. So that customer can buy a product or service in order to solve their problem.  And investor can make a decision to invest in your company.

Market Analysis:

Above two points are more about basic information. From this point real information must be given in order to gain faith of a customer or investor. In this point an entrepreneur is advised to conduct market research to determine the total size of their target market. Also, research about the competitors and also about the customers need and preferences.

Market analysis also gives some hints about product or services expected fair price.

Product or Services Detail:

In this section an entrepreneur must have to talk about the product and services they are offering. Or planning to launch. And create a profitable business around that.

In this point you must explain about unique feature about your product or service. And try to cover each and every detail of that product or services. Like how you are going to deliver your product or services to your customers.

Marketing And Sales:

Marketing and the sales is very important in any business. And so in any business plan also.

In this point you must have to discuss about your marketing and sales plan idea of your product and services. You must share the detail outline of your marketing and sales idea like how you are going to promote this product or service. And also, how you will be going to drive valuable sales for your product or services.

This point can be covered in detail.

Financial Projection:

Financial projection is the second most important factor of any business plan. Because if any business is not able to make profit it can not sustain at all.

Well nowadays many of the entrepreneurs think that funding is very important to create a big business, yes, it is but after profitability. Because if you are not making money by yourself you cannot survive for long period of time on investor’s money. Because they will also look for the profits although.

So financial projection is also very important in any business plan where you can discuss about the company’s revenue model. How company is going to manage the funds, their profit and their cashflow as well.

In this section an entrepreneur must also share the company’s financial growth prospect as well.

Goal in Business Plan:

in this section an entrepreneur must discuss about the company’s growth and its short term and long-term goals as well.

They must have to write the detail description about their planning to achieve their goal. they can also discuss about their future product and services.

An entrepreneur can also discuss about company’s financial goals like how big their company will be in given time span. You can also discuss about this in terms of market share like how much market share you want to gain in given time.

You can also share the plan to gain any achievement in for your company in future.

Conclusion:

So, these are the points that any business plan has to cover in order to gain funding from their potential investor or to gain new customer for their business.

An entrepreneur must have to think like the customer if they are targeting customer’s and must have to think like investor in order to achieve the funding.

All the points discussed above is very much important in any conditions. And we also advice you to update your business plan time to time. Because market is ever evolving and conditions will change drastically over the time always.

Thank You For reading this article hope you got the value in it please share it to other’s so that they can get an idea about this topic too.