Posted on: 21st Apr 2020 1386 Views

How to write a business Plan

Writing a business plan is considered quite a difficult task. Undergraduate and master’s students when asked to create a business plan they feel pressured. Before beginning to write a business plan they have a question about what to include in it. In this article, an expert team of Ireland assignment help is providing students with essential guidelines on writing the perfect business plan.

How To Write A Business Plan

Business plan: Definition

A business plan is a formal document that provides information about the operational and financial goals of the business. It is very much important to create a perfect business plan.

Business planning is the first step in establishing a new enterprise. It is a continuous and systematic procedure that includes determining the products or services to offer. In the initial steps of business planning, you need to first decide the type of business you intend to launch. After that, you are required to decide other things such as location, products, or services. In the next step, you need to analyze the demand for specific goods or services in the market.  When making a business plan should do financial projections and perform competitor analysis.

Tip: You should create a flexible business plan as it will provide you with ease in modifying according to changes in the external environment.

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Advantages of business planning

A few advantages of business planning are:

  • It assists in determining an appropriate business structure.
  • An appropriate business plan aid in reducing the risk of loss.
  • A proper business plan helps in identifying and capturing business opportunities.
  • A perfect business plan assists in confirming the availability of resources and funding for establishing a business.
  • It allows you to gain insight into the business which is crucial for driving the organization towards success.
  • A business plan also enables you to be sure about your assumptions.
  • By writing a business plan you will be able to identify the strengths and weaknesses of the business that you intend to establish.

How to Write the Perfect Business Plan?

4 steps to a Perfectly Written Business Plan are:

Step 1: Identifying business

At the first step of writing a business plan, you are required to develop an idea about the type of business you want to start.  It is a step where you should decide which goods or services you want to launch in the market. In this step, you also need to take other important decisions that might relate to operations, marketing, selling, sources of funding, location, etc. At this step only you should also formulate business objectives. It is a tactic that will help you in making a crucial decision. By setting objectives you will get ease in the formulation of the further business plan.

Step 2: Competitor analysis

At this step, you should execute a survey for gathering information about your competitors in the market. After gathering the information about competitors you should properly analyze their strengths, strategies, etc.  Based on the competitor’s information, you should also analyze the strengths and services of your goods or services.  At the time of data analysis, you should focus on analyzing the trends, demand, and supply, pricing strategy, etc.

Step 3: Determine the capital expenditure

Determination of the capital expenditure required for establishing a business is a very much important task. At this step, you are required to design a flexible budget for launching your new business. At the time of preparing the budget, you need to determine the funds that you will require for establishing a new organization.  You should prepare a plan for how you will invest in a machine. For instance, you can fix the amount of money you are going to spend on purchasing raw materials, furniture, machinery, etc.

Step 4: Address the sources of funds

After the successful determination of the funds that you will need for establishing a business. You are requiring identifying appropriate sources for making arrangements for money. For instance, an entrepreneur can obtain for fulfilling the operational requirement of the business.

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Format of Business Plan

Your company plan should accomplish several objectives, including raising funds, guiding your team, and developing growth strategies. Because the structure of your business plan will aid you in achieving these objectives, it’s critical to consider it while you construct it.

Your company plan should accomplish several objectives, including raising funds, guiding your team, and developing growth strategies. Because the structure of your business plan will aid you in achieving these objectives, it’s critical to consider it while you construct it.

1. Begin with an executive summary.

The executive summary gives the reader an overview of your company. No one will read any further if you don’t nail the executive summary. It’s an important part to have in your business plan—and to get it correctly.
A very basic outline of the following should be included in every executive summary:

  • The issue that your company is attempting to solve
  • Your problem-solving strategy (i.e., your product or service)
  • Your intended audience
  • Why is now the best time for your business?
  • Highlights of the financial forecast

If you’re soliciting funds or giving a presentation to outsiders, you’ll also want to include:

  • The company’s management team
  • How much money do you want to raise

Your executive summary should ideally be one or two pages long. Keep things brief and sweet; your viewers don’t have a lot of time and want to obtain a quick summary of your company before deciding whether or not to read further.

Your executive summary should be able to function independently of the remainder of your strategy. When investors ask for additional information, a popular technique is to send out an executive summary first, followed by the full plan.

2. Add supporting documents at the end.

All business plans should begin with an executive summary and conclude with supporting documents, which are an appendix of critical figures and other facts that back up your plan. These are the essential aspects of a business strategy that should be included at the beginning and finish. Your financial predictions and budgets should be included at the very least in your appendix. A profit and loss statement, a cash flow forecast, and a balance sheet are usually included.

3. Keep it brief.

Nobody has time to read a 40-page business strategy, let’s face it. If you’ve nailed your executive summary and persuaded someone to read the rest of your strategy, you’ll only need eight to twelve more pages.

Focus on paring down your writing rather than trying to jam everything in with small fonts and tiny margins. Use straightforward, straightforward language that gets to the issue. Don’t say the same thing twice, and leave out unnecessary words. Short paragraphs and bullet points are also excellent choices.

4. Make use of visuals

“A picture is worth a thousand words,” as the saying goes. This is especially true when it comes to arranging the components of your business plan. Visuals will help express that extra information because readers will most likely skim your various business plan parts rather than reading every word. Explain your forecasts via charts and graphs. Include images of your product. If you “show” instead of “tell,” your readers will always have a greater understanding of your organization and opportunities.

5. Make sure you’re writing for the proper people.

It makes sense to give technical specifics that your audience will understand if you know you’ll be presenting your plan to readers who have a thorough understanding of your business. If your audience is made up of people from various industries and backgrounds, however, you must convey your company ideas in a way that is understandable to all.
This isn’t to mean you should “dumb down” your ideas; rather, you should save some of the finer elements for an appendix or a separate document that explains how your product works in depth.

6. Don’t get too caught up with the looks of the plan.

Your strategy should be polished, but it’s the ideas that matter. A beautifully organized business plan that presents an ill-conceived business idea with imprecise financial forecasts can never trump a poorly formatted business plan that discusses a brilliant, thoroughly articulated business idea. Spending hours or days creating a beautiful strategy will not improve the quality of your business ideas. Instead, concentrate on honing the words you use in your strategy. Remove any unnecessary text and make sure your thoughts are presented properly.

7. Keep it simple with your formatting.

Use single spacing with an extra space between paragraphs for general formatting. Use a beautiful serif font like Garamond or Baskerville if you’re printing your plan. Use sans serif typefaces like Verdana or Arial if your plan will be read largely on a computer screen.

Why is it necessary to use distinct typefaces for on-screen and off-screen use? According to the research, readers had a considerably better understanding when reading a document written in a serif font on paper than when reading a document written in a sans serif font on a screen.

But don’t get too worked up over it. Select one of the four typefaces shown above and continue.

The font size should be between 10 and 12 points to be readable by the majority of people. If you need to reduce the font size to make your plan shorter, you should cut information rather than modify the font size. The margins follow the same rule: To make the plan readable, use standard one-inch margins.
It’s also a good idea to have cover pages. Make use of the cover page to display your logo, tagline, or value proposition. Remember to include your contact information; you want comments and follow-up on your plan, after all.

 

8. Enlist the help of a second pair of eyes.

The final piece of advice I have for designing your business plan is to have a second set of eyes look it over. When you’re the only one working on your plan, it’s easy to overlook some of the mistakes you’ve made. Recruit a friend or family member to read your strategy and polish it, or engage a copy-editing professional to do it.

Nothing is more frustrating than a plan that contains grammatical or typographical problems. The second set of eyes will go a long way toward catching the vast majority of potential issues.

Information required for writing a business plan

You need the following information for writing a business plan such as:

  • List of capital equipment
  • Final projections in detail
  • Letter of creditability
  • Income and cash flow statement

What is the length of a business plan?

You need to write a basic plan in just 15 to 20 pages.  A length of a business plan is completely based on your objectives of writing also. For example, if you are writing a business plan for attracting investors then you need to provide detailed information about your business. In case you are writing a business plan for sharing your ideas or expanding your business then you can write it in short.

What to include in a business plan?

You for writing the perfect business plan need to include the 6 things in it these are:

1. Executive summary

When writing a business plan you are requiring providing a summary of your business idea. You should also provide detail about the source of the idea. It is very crucial for you to clearly explain the concept of your business.

2. Description of business

In the business plan, you should provide a brief description of the business. When writing a perfect business plan you need to specify how your business will earn a profit? It is also very crucial for you to define the organizational structure of the business.

3. Detail of marketing strategy

In your business plan, you are required to provide information about the techniques and tools which you will utilize for the promotion of your business.

4. Information about competitors

At the time of writing the business plan, you are required to include information about business strategies you will utilize for gaining a competitive advantage.

5. Operational and management plan

You need to include information about the different business functions you will perform for accomplishing your business objectives. In a business plan, you need to write information about how you will produce goods or services.

6. Financial plan

You need to include information about the sources from which you will obtain funds. When writing a business plan you are required to provide detail about how you will invest. You need to provide the specifications for the amount of money you will need to fulfill different business requirements. It is also very crucial for you to include an estimated cash flow statement and highlight an estimated break-even analysis.

Conclusion

From the above article, it has been concluded that creating a perfect business plan is essential for successfully establishing a company. Another fact that has been found from the above is that it is the business plan which helps in determining the risks of establishing a particular business.

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