Business Plans: 7 vital component for the success of our business By Priyanka - January 18, 2020 Last Updated at: Dec 10, 2020 1535 Coal India Ltd has recently released its business plans to enter into the renewable energy segment. It has pledged Rs 5650 crore for building 3000MW of solar power projects by 2023-24. Going into business without a business plan is like going on a mountain trek without a map or GPS support – you will eventually get lost and starve – Kevin J. Donaldson When you hear the word ‘roadmap’ you think something is there for a desired outcome. Every human has a good amount of expectation from their future. We set our own goals and work hard in a proper sequential manner. We plan out the things to be done and also mark all the expected difficulties during the process. This eventually makes things easy and achievable with fewer efforts. Something very similar happens in the field of business. Every business person wishes to expand his empire as much as possible and ultimately make maximum profit out of it. And here comes the indispensable role of a business plan. What exactly is a business plan? A business plan is a document that sums up all the financial as well as operational objectives of a business. It also contains detailed strategies and the ways through which the desired goals can be attained. The vision of the company must be clearly stated in its business plan. It can also be understood as a roadmap that directs us towards the successful running of our business helping us avoid the expected consequences. As the goals of any business changes with time, we also need to update the business plan with time. Creating a decent business plan is said to be the first vital step for a person starting a new business. The steps required for writing a business plan A business plan need not be a lengthy one. It must include all the strategies and planning that one has in mind and are required for the execution of the plan to achieve the final goal. The steps that must be followed to write a business plan include: Market research: Proper market research is expected from the company before writing their business plan. The company is supposed to know every detail about their own company along with correct and up to date knowledge of the industry in which the company is. You must also try talking to the public and try to understand their needs. A senior financial and management executive, William Pirraglia, has said we must consider twice as much time researching and evaluating than you spend in actually writing the business plan. State the motive of your business plan: Apart from directing us towards our goals, it also fulfils the purpose of reminding us about various sales and marketing strategies being made by the company along with the projected profit and loss statements. The purpose stated in the business plan may vary according to your business. Guidance for your Business Plan Generate a profile of your company: It is one of the first written parts of the plan. Firstly, a company profile consists of all the products and services offered by the company, its resources, and the history of the organization. Apart from this, the company profile also states how the company will solve various problems and what makes their business unique. This profile is used to completely describe the company in the business plan. Documentation: An investor only invests in any company if he feels that the company will earn the maximum profit in the future. So, an investor expects the company to let them know everything about their business. To help in this process, documentation of expenses, cash flow, and industry projections are being done. Express your marketing strategies: Marketing is said to be one of the most crucial aspects for the success of any business. A perfect business plan always consists of some incredible marketing strategies. However, the company prepares these strategies after detailed market research. These marketing strategies help the company to put together all of their scarce resources on various opportunities to increase the sales. Must allow changes whenever required: The readers of the business plans belong to diverse groups. Every potential reader is expected to have a different level and field of interest in the plan. Because of this, it is suggested that the business plan must allow changes so that we can change it in accordance with the audience reading the plan. Let them know you care: Let it be an investor, a customer or any member of the company, whoever reads our business plan must be convinced that our entity really cares about their business and they are entirely dedicated to achieving their goals. You may also discuss the lessons you have learned from the mistakes done in the past and the problems that you look forward to solving in the future. This point will really create an impact on the potential readers of your business plans. Format of a Business Plan Come forward with your ideas in a more logical manner through Business Plans. Therefore, a well-thought plan comprises – Introduction Entreprise Description Product or Service Description Analysis of the Industry Growth projections for a 1 year, 5 years and a decade Marketing Plan Operations Plan Tech Plan Human resources sub plans Budget Liquidity Constructive Measures Milestones Conclusion Business plans help us to smoothen our way towards achieving the dreams the company once had. Considering its importance, let it be big or a small company, indeed, everyone must have perfect business plans.