How to Write a Business Plan that Really Works?

The success of a business depends on a well-thought-out idea. Even better if you analysed and documented it.

If you, as an entrepreneur, don’t take into account the risks and don’t identify the prospects for the development of the organisation, you may incur losses.

Therefore, you need to create a business plan. It will show the strengths and weaknesses of the project, and also help to find an investor. 

So, why do you need a business plan, what main points should it contain, and what important details should you not miss? Keep reading to be successful in your next project!

Why do you need a business plan? 

When a novice businessman launches a startup, he doesn’t always manage to understand where to start his journey.

According to studies, about 17% of startups start work without a well-thought-out business model, which becomes one of the reasons for their failure.

That is why a business plan is a necessity – it serves as an economic and technical justification for entrepreneurial activity and describes a model of expected business processes. There are several key reasons why you should write a business plan: 

• It helps to manage the project at the initial stage
• It helps in making difficult decisions
• It helps attract investors

Indeed, a business plan makes it possible to structure the work process, lead it along the desired trajectory, and gradually strive towards the goal.

Also, it serves for adequate risk assessment and mitigation, and finding possible escape routes in case of emergencies.

And if you’re looking to attract investors, there’s no better way to get funding than to justify your strategy and competitive advantage through a business plan.

Business plan structure 

A business plan can look different depending on the type of company and the priorities of the entrepreneur who creates it. However, it must contain the following items: 

• Title page. Must include company name, owner name, and contact information. 
• Contents. Helps to navigate and quickly find the desired pages. 
• Introduction. Brief description of the company, its history, resources, team size, mission, and uniqueness. 
• Project description. This paragraph describes the concept and main idea of the business. 
• Industry description. It explains the prospects and main trends of the industry, and why it is profitable to offer your product here. 
• Competitive analysis. Here you should write the differentiators of your competitors, what their strengths and weaknesses are, and why your product/service is better. 
• Market analysis. The main purpose of the section is to describe the portrait of the client. Who is he, how much does he earn, what are his habits and needs, and why does he need your product? 
• Management team. List the people involved in the company. 
• Operating plan. Tell how the company will function, what operations it will perform every day, and what are the long-term operational prospects. 
• Marketing plan. It describes the strategy for selling the product and how to achieve it. 
• Financial plan. Description of current and subsequent expenses of the company with the preparation of various forecasts. 
• Application. Additional information that doesn’t fit into any of the previous points, but will help convince the investor.

What rules to follow when writing a business plan 

There are a few rules to follow when writing a business plan. They help to attract the attention of the investor and build a sustainable company that will make a profit. 

• The plan should be short and informative. No investor will read a 100-page plan. If the project has a complex structure and requires supporting documentation, include it in the application. 
• The plan must be clear. People who invest in research don’t always understand scientific terminology and specific industries. The plan should be easy to understand and visually explain even complex things. 
• The plan should disclose goals and objectives. Let’s say you have an idea to open your jewellery store. Decide what your goal will be for the next 3-5 years. Specifying the goals will help show the investor the potential profit, and the company – to see their possible prospects.

So, writing a business plan is the first step to business success. For many, this is the most difficult step. Thus, the best way to prepare for it is to relax and gain mental strength.

How to do it? For example, book a minibus hire Alicante Airport and go on a road trip with family or friends.

A spacious minibus hire self-drive allows you to feel the freedom of movement and collect your thoughts.

Naturally, you can pick up a 9 seater car hire at any destination, which further expands your travel options and results in an unforgettable pre-work vacation.

Read more business articles related to Sales, Marketing,  Advertising, Finance, Entrepreneurship, Management, Education, and Industry at SugerMint.