Writing an effective business plan is one of the requisites for success as entrepreneur. Good business plan can get you investors, sponsors, government approvals and loan. Therefore this part must not be neglected when starting a business.
When writing a business plan, you must be very strategic. Business plan outlines in specific terms the financial objectives of your business, and how it will position itself to achieve those goals in the context of the current market environment.
Here are what should be in your business plan;
This is a statement of purpose or mission statement if you choose to call it so. By glancing through , your target lender should be able to know the name and nature of your business, its legal structure, the amount and purpose of your loan request and your repayment plan. You must be précised and specific and make it brief because nobody likes to read too much text.
This section addresses the details of your business. You can start with a page summary addressing the key elements of your business. This includes information about the industry in general and your business . You must justify your projections with data for example the financial worth of the industry and how a top player in the industry is doing
Is your business a sole proprietorship, limited or unlimited liability company etc? State the reasons for your choice of that structure. You may need to add your business licence for the purpose of credibility. If you have formed a partnership, include a copy of your partnership agreement as part of the supporting documents.
In this section, you go into more details about your business. Provide clear cut answers to questions like the business history, present status, and future projections. Highlight the assets you have, inventory, turnover rate, industry trends and others. Emphasis why your product is different from the ones in the market and why customers should choose yours.
5.Products or services
Here, details of your product from raw materials to finished item.
The types of raw materials that are used, the prices, where and how to buy them and the purpose of your choice of such products and cost breakdown.
- Business location
Your level of sales is mostly determined by your business location, it determines your marketing plan. Also, your targets will also influence your choice of location. You must state this clearly in your plan.
This section describes those that are running the business or financing it.
Do you have a team or you running the business alone. Why did you choose the style of management and not the other style etc.
In this section, you list the names of who will be doing what, how you will hire them, their expected qualifications and skills, job descriptions of each of these personnel, their benefits etc.
- Accounting method
You must explain how you intend to keep records and why you chose that method-Is it internally or you will be using auditing firms?
What kind of insurance policies do you want to subscribe and why. Insurance is very important considering the porous nature of every business around the world.
In this section, you highlight your marketing plan for the business
Other things you need to include in the plan are;
In summary, a well written business plan gives you a clear understanding of how to function as an organization, the expected challenges and how to surmount them.