How to write an impressive business plan

Last Updated at: July 17, 2020
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How to write an impressive business plan - Vakilsearch
How to write an impressive business plan?

A business plan is a document which describes the scope, prospects and the proposed operations of the business for achieving its goal. A well-crafted business plan helps in managing and growing the business while attracting banks and investors; it serves as a prerequisite for raising/ investing the funds. The plan usually contains an executive summary of the business, detailed its description and goals and overview of the business. Hence, it is considered the basic step of starting a business. Here we have mentioned what all can go into an impressive business plan for your startup.

Title:

The business plan should always have a title page. The logo of the business should be on the first page. The title page contains the cover list which mentions the name of the owner, name of the business, the address of the business and owners, their email address and phone numbers along with the website address

Executive summary:

The executive summary should not be more than half page and it should mention the reason for the proposal. It should also give a clear picture of how the owner will repay the loan and with all the terms and conditions laid. It must describe the business concept, its product, the market it serves and its competitor. There need to be financial highlights, sales and profits, financial requirement, collateral, the current business position, legal form of operation, major achievements such as patents, prototypes, important contact etc.

Get Expert Guidance on Preparing Business Plan

A thorough market analysis:

An in-depth and thorough market analysis will help in establishing pricing, distribution, promotional strategy for the success of the company. The market analysis defines the market size, demographics, structure, trends and sales potential and also helps in positioning which establishes products identity. Also, the methods of establishing prices are available in the market. The most common pricing for the products is cost-plus pricing, demand pricing, competitive pricing, and mark-up pricing. Market analysis helps in distribution which further helps in moving the product from the factory to the consumers. They also analyse the competitors in the market who come as a barricade while distribution. The final stage is promotional strategies which include communicating with the markets through advertising, packaging, sales promotions and create awareness of the products

Competitive analysis

The first and foremost step is finding direct and indirect competitors. The main purpose of the competitive analysis is to determine the strength and weakness of the competitors in the market. It also helps determine the strategies for more selling and finds barrier, thereby preventing competition and also helps in finding any weakness through which the business can be exploited.

Design and development plan

This plan helps in providing product designs to the client, development chart regarding production, marketing etc. and also helps in creating a budget which enables the business to reach its goal.

Financial plan

After planning everything, the next step is to plan is the financial aspects. As finance is the backbone of any business, it is necessary to plan all the income and expenses which may include, for example, the setup costs, business licensing permits, rent deposits, down payment of property, cash flow, income statement, balance sheet, and more. The income statement usually reflects the sales made and expenses incurred to arrive either the business are running in profit/loss. The cash statement deals with all the cash transactions every month. The balance sheet is the most important statement in the financial statement, and it is generated annually to know the net worth of the business. All the assets and liabilities of the business will be taken into account.

Why is a business plan important?

As we have discussed earlier, business is benefitted in multiple ways by having a business plan:

  • A proper business plan helps the business to grow exponentially.
  • Helps the business in establishing their business milestones. 
  • Supports the business in understanding its financial needs.
  • Allows the business to document its revenue model. 
  • Enables the business to conduct market research and understand the market for better overall growth and sustainability. 
  • Allows the business to develop and document a comprehensive marketing plan.
  • Provides support in understanding the business’ staffing requirements. 
  • Helps in attracting more employees and leadership or management team into the business. 
  • Also, helps the business in sharing the strategy, mission and vision etc effectively to the employees and the management.
  • Gives the managers their objectives and helps them have a focused approach towards their tasks.
  • Allows the business to decide what kind of a place to rent or lease to conduct operations.
  • Provides clarity on the asset requirements. 
  • Also provides clarity on whether to lease, rent or purchase the required assets.
  • Assures the investors that the business is well planned. 
  • Also assures the banks while applying for loans.
  • Also helps in positioning the business.
  • Supports the business to reposition itself based on the altering market needs. 
  • Facilitates a better understanding of the competitors.
  • Similarly, it allows the business to have a better understanding of the customers.
  • Enables the business to have a focused approach towards a new product or service development.
  • Safeguards the business from approaching or pursuing any wrong opportunities.
  • Creates an environment for streamlined business development.
  • Helps in dealing with the displacement.
  • Also makes the process of selling a business easier.

Conclusion

Any business without having a business plan will be at risk. It runs out of cash even before the startup. The business may miss sales projections as the owner won’t be aware of the customers. There are chances of going bankrupt. There are fewer chances of securing fund which may lead to failure of the business.

To know more about Business Plan: Click here

You should also read:

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How to write an impressive business plan

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A business plan is a document which describes the scope, prospects and the proposed operations of the business for achieving its goal. A well-crafted business plan helps in managing and growing the business while attracting banks and investors; it serves as a prerequisite for raising/ investing the funds. The plan usually contains an executive summary of the business, detailed its description and goals and overview of the business. Hence, it is considered the basic step of starting a business. Here we have mentioned what all can go into an impressive business plan for your startup.

Title:

The business plan should always have a title page. The logo of the business should be on the first page. The title page contains the cover list which mentions the name of the owner, name of the business, the address of the business and owners, their email address and phone numbers along with the website address

Executive summary:

The executive summary should not be more than half page and it should mention the reason for the proposal. It should also give a clear picture of how the owner will repay the loan and with all the terms and conditions laid. It must describe the business concept, its product, the market it serves and its competitor. There need to be financial highlights, sales and profits, financial requirement, collateral, the current business position, legal form of operation, major achievements such as patents, prototypes, important contact etc.

Get Expert Guidance on Preparing Business Plan

A thorough market analysis:

An in-depth and thorough market analysis will help in establishing pricing, distribution, promotional strategy for the success of the company. The market analysis defines the market size, demographics, structure, trends and sales potential and also helps in positioning which establishes products identity. Also, the methods of establishing prices are available in the market. The most common pricing for the products is cost-plus pricing, demand pricing, competitive pricing, and mark-up pricing. Market analysis helps in distribution which further helps in moving the product from the factory to the consumers. They also analyse the competitors in the market who come as a barricade while distribution. The final stage is promotional strategies which include communicating with the markets through advertising, packaging, sales promotions and create awareness of the products

Competitive analysis

The first and foremost step is finding direct and indirect competitors. The main purpose of the competitive analysis is to determine the strength and weakness of the competitors in the market. It also helps determine the strategies for more selling and finds barrier, thereby preventing competition and also helps in finding any weakness through which the business can be exploited.

Design and development plan

This plan helps in providing product designs to the client, development chart regarding production, marketing etc. and also helps in creating a budget which enables the business to reach its goal.

Financial plan

After planning everything, the next step is to plan is the financial aspects. As finance is the backbone of any business, it is necessary to plan all the income and expenses which may include, for example, the setup costs, business licensing permits, rent deposits, down payment of property, cash flow, income statement, balance sheet, and more. The income statement usually reflects the sales made and expenses incurred to arrive either the business are running in profit/loss. The cash statement deals with all the cash transactions every month. The balance sheet is the most important statement in the financial statement, and it is generated annually to know the net worth of the business. All the assets and liabilities of the business will be taken into account.

Why is a business plan important?

As we have discussed earlier, business is benefitted in multiple ways by having a business plan:

  • A proper business plan helps the business to grow exponentially.
  • Helps the business in establishing their business milestones. 
  • Supports the business in understanding its financial needs.
  • Allows the business to document its revenue model. 
  • Enables the business to conduct market research and understand the market for better overall growth and sustainability. 
  • Allows the business to develop and document a comprehensive marketing plan.
  • Provides support in understanding the business’ staffing requirements. 
  • Helps in attracting more employees and leadership or management team into the business. 
  • Also, helps the business in sharing the strategy, mission and vision etc effectively to the employees and the management.
  • Gives the managers their objectives and helps them have a focused approach towards their tasks.
  • Allows the business to decide what kind of a place to rent or lease to conduct operations.
  • Provides clarity on the asset requirements. 
  • Also provides clarity on whether to lease, rent or purchase the required assets.
  • Assures the investors that the business is well planned. 
  • Also assures the banks while applying for loans.
  • Also helps in positioning the business.
  • Supports the business to reposition itself based on the altering market needs. 
  • Facilitates a better understanding of the competitors.
  • Similarly, it allows the business to have a better understanding of the customers.
  • Enables the business to have a focused approach towards a new product or service development.
  • Safeguards the business from approaching or pursuing any wrong opportunities.
  • Creates an environment for streamlined business development.
  • Helps in dealing with the displacement.
  • Also makes the process of selling a business easier.

Conclusion

Any business without having a business plan will be at risk. It runs out of cash even before the startup. The business may miss sales projections as the owner won’t be aware of the customers. There are chances of going bankrupt. There are fewer chances of securing fund which may lead to failure of the business.

To know more about Business Plan: Click here

You should also read:

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