What Is A Business Plan And How To Make A Business Plan

What Is A Business Plan And How To Make A Business Plan

Before starting any business, Planning is an important process and creating a written business plan is an important part of this process. Business Plan A map of your business is a map or a blueprint that includes general information about your business, business goals, and how to achieve those goals. Business plans not only work as your guide but are also important for many important tasks like Bank Loan, Startup Funding or Business Partnership.

It is very important to create a business plan for almost all types of business loans, otherwise, banks can refuse to give loans.

What is a business plan
Before any work, it is planned. The same thing applies even in a business where the written form of this plan is called Business Plan. Actually, the Business Plan is a document that answers all questions like 'What', 'Why' and 'How' of a new business. 

  • What is our business?
  • Why do we want to do this business
  • How do we do this business?
All of these questions are answered by a business plan. The Business Plan is primarily for the new business, but any current business is doing something new, even then Business can be pushed forward by creating a Business Plan. Business Plan does not just get a Start-up, but also Established Business. Periodically, changes in the business plan can also be made according to the circumstances.

Why Business Plan is Created:-
You can imagine what is the need to create a Business Plan. Through its Business Plan, the businessman expresses the written form of his set goals and what he is planning to achieve those goals clearly. Business plans or business plans are very important for the following purposes:-

Applying for a Business Loan in Bank
Fundraising in other ways such as Venture Capital Firm or Crowdfunding for your Small Business or Startup
Applying for any kind of business related subsidy or any scheme
Business Partnership and Franchisee etc.
A well-formed business plan is not only easy to get funding or finance from the bank and other external sources, but it is also helpful in the internal operations.

How to Write a Good Business Plan - How To Build A Good Business Plan
Any planning is done in a very thoughtful way. The same thing applies even when building a Business Plan. Before starting any business, its plan is prepared as a Business Plan. Therefore, some things are taken care of before creating a good business plan. The major ones are: -

What is the Core Objective to build this Business Plan?
Business Plan is being made for the people. Indeed, those who read it are Investors or Bankers whose money is invested in business?
What's included in your Business Plan?
Do you want a brief or detailed Business Plan?
When these questions are answered then a businessman begins to build his own business plan. The focus is done on any of the following topics, in a successful and clear Business Plan: -

1. What is the purpose of the business:- a well-designed Business Plan can tell the objectives of any business. Through this business plan, the businessman has made a plan for his future. For these purposes, what will be the benefit of business people, details of which are also carried out from the Business Plan.

2. Describe the clear description of business:- Through the Business Plan, the complete description of any business unit is known. Through this Business Plan, another person learns how you started your business and what your purpose is.

3. What are the products and services of business:- When designing a business plan, a businessman can decide what kind of products he has to produce and what services he has to offer.

4. Assistant in Market Analysis:- When a businessman creates a business plan, he also analyzes his related market before doing so. This analysis can only be known about future benefits and disadvantages.

5. Description of Business Structure:- In any commercial framework, its employee and managerial capacity are known. Building a Business Plan also addresses the business structure.

6. Use of resources:- The best means of any business unit is the time spent on it and the businessman. When creating a Business Plan, you will have to decide how to use both of these important resources.

7. Targeting:- To make any work successful, it is necessary to determine its goal. When creating a Business Plan, determining business goals becomes simpler.

Business Plan Template 
However, there are no fixed formats of any Business Plan and are made in different ways as per requirement.

Typically a business plan consists of the following parts:-

Executive Summary:– 
Executive Summary Are the first part of any Business Plan and all the important things related to Business Plan are written as a summary. Business Nature, Legal Structure, Product or Services, Target Market, Business Model, Management Team, Marketing Plan, Goals, Financial Projection, Fund or Loan Required etc. are summarized.
The rest of the remainder of the Business Plan is written in this section, so it is better to make the part at the end.

Company or Business Overview:– 
In this part of the Business Plan, all the information related to your business is written in detail such as

Nature Of Business
  • What would you sell - Product or Service
  • What is your target market
  • The legal structure of a business is that the business is a solo, partnership or company,
  • Staff and management team,
  • Business location
  • Apart from this, all the things related to the product or services of the business are written in detail in this section such as:-
  • What problems are being solved from your product or services, or what are these people doing?
  • How much are your product or services different from others?
  • Why people will buy your product
  • How do you create your product and what is the best way to do that?
  • Have you registered the product and services of Trademark, Patent etc?
  • Product / Service Description can also be shown in different parts.
Market Analysis:–
In this section, all important things related to the Target Market of your product or service are analyzed like:-

Target Market, Market Size and Demand
Who will you sell - Target Customer, Their Behavior, Class and Purchasing Power
Who are your competitors and how much market share they have, their strengths and weaknesses
Significant changes in Demand and Market in the future

Marketing Strategy:– 
This part of the Business Plan is considered very important. This section describes all the policies that you would like to use to bring your product and services to the customer and use for Market Promotion. Under this section, you have to determine the following:-
  • How to make your place in your product or service market
  • Who are your target customers who will first show interest in your product or services and how you will reach them
  • What will be your pricing policy
  • How would you promote your product or service like Direct Marketing, Advertisement Social Media etc?
  • How do you deliver your products or services to the customer - Distribution Channel
  • What will be your Selling Strategy?
Operations - Methodology:-
  • This is an important part in which Business Operations means "business will run" contains all the information related to all things such as:
  • Business Place:- Where will you do your business? Will you buy or rent a place?
  • Production Facility and System:- What type of production facility do you have and what are the requirements.
  • Purchase Plan:- How would you buy your Inputs and this is the best way
  • Production Plan:- How you will produce your product. Based on the basis of Demand or Estimates.
  • Workforce Structure and their roles:- Your employees' posts, scope, and their responsibilities
  • Systems and Information Technology:- What's the main IT system for your business
  • Store Facility:- How much stock will you keep and where.
Financial Analysis - Financial Planning:-
Financial Analysis is the most important part of any business plan because this section presents all the important things of your business and the projection in Figures or Numbers. From this part, the bank or venture firm finds out the financial position of your business and the need for capital, depending on which banks lend and invest in Venture Capital Firms. This part mainly focuses on the following:

  • How much capital or fund you need for business and where to use it - Capital / Fund Requirement
  • How do you raise this capital:- Loan, Venture Funding, Crowd Funding, Own Capital etc.
  • How long will you take a loan, what will be the security of it and how to repay it
  • What are your Business Revenue / Income Sources - Sales, Other Incomes
  • What are the expenses of your business - Purchases, Interest Payment, Rent etc.
  • Profit & Loss Forcast for the next 3-5 years on the basis of Sales, Revenue and Expenses
  • Growth Forcast Your Business
  • Business Risk and its possible results
  • Important Statements of Financial Analysis / Forcast
Capital Requirement and Sources of Capital
Sales Forcast of 3-5 Years
Profit and Loss Forcast of 3-5 Years
Cashflow Statement
Balance Sheet

Business Plan is the most important document in your business that guides you continue to pursue your business. Therefore, it should be very careful in its construction.

So friends post here to tell you how much help you are saying in a thanking tone and share this post with your friends on Facebook, Twitter, Instagram
And follow me on the social site

Post a Comment


Post a Comment

Youtube Creator & Blogger at Blog Fens

Contact Form