A justified business plan always opens the path to a profitable business.
In every industry, there is always high competition. People nowadays know too much about business. Here in bizshill, we are here today, with an excellent topic to discuss, ” #Business plan(B.P) is a crying need for Today’s business in 2022″. We will discuss several topics here.
Such as:
1 . What is a business plan?
2 . Why do we need a business plan?
3 . Business plan in the competitive industrial market of 2022.
4 . Type of business plan.
5 . Steps of making a successful and winning business plan.
6 . Important topics to keep in mind about a business plan
Bonus topic: HOW INVESTORS WILL JUDGE YOUR BUSINESS AT FIRST.
Table of Contents
1 . What is a business plan?
We will start with the definition of a business plan and then we will start our deep discussion. As the definition goes, a business plan is just a business document of companies’ internal and extranet work plans. This document talks about a certain company’s objectives and goals which the company needs to achieve. It is like a written road map, such as a manual.
This road map talks about marketing, financial, managemental, employee, and operational standpoints. The business plan is considered the foundation of your business. For your start-up or established company business, you need a winning business plan. You need a business plan that can practically work.
You can not set illogical goals, targets, plans and outputs in the business plan. For this, you have to find out the SWOT analysis(Strengths, weaknesses, opportunities, Threats) about the business. Also, research the industry in which you are working. Then you can get a killing business plan.
You have to represent your business plan to all the workers of the company. Because they all have to know what the company wants to achieve in the end. Based on whether your business is new or an established business, your business plan-making style will change accordingly.
An established company has more work power, financial support, and popularity in the market. Executing a business plan for this type of company is easy to compare to the start-up business. Instead of going with an error and learning process you can do research and ensure a profit by using a successful business plan.
Then you do not need to ask for direction from another businessman in your field. As you have made a plan at the start of business now you can make a bigger plan, and make important decisions. You can also take risks for your business. Even if you can do work for more improvement of business and at the end of the day, success will be yours.
2 . Why do we need a business plan?
Operating a business without any plan is not a good idea at all. You will then end up with failure, or limited success. And in the end, you can not even stay in the market. So, before investing money in a business you first need to have a proper business plan. If you do not have a strong focus and discipline your business plan will not work for you.
There are many important reasons why we need a business plan. We all know that a proper strategy ensures the 50% success of a certain work. This business plan will guide your business to give the investors and lenders the information they need to work with you or invest in your business.
Here I have mentioned some points why you need a business plan.
1 . You need to prove that you are serious about your business. You have to be connected with your business. Thus you can focus and make essential strategies.
2 . Business plan will help to set up the milestone. There can be short-term and long-term milestones for your business. Long milestones can be 2 years to 5 years milestone and short-term milestones can be 6 months to the 1-year milestone.
3 . Making a business plan will assist you to understand potential competitors better. You are not the only businessman in the market of a certain industry. Even before you joined the business there were some big companies with the same niche you are working with. Making a business plan will help you to analyze your commentator. Use the advantage of your position in the market and work for your business.
4 . To analyze the customer, knowing your target customers is always an important key point of business. You have to analyze what your customers need. What they prefer most among what you are serving the customers. A depth of customer research is highly needed for making a killing business plan.
5 . You can avoid big mistakes. There are many reasons why every business can not reach its 40th birthday. They unknowingly made many big decisions. This judgment finally put them to nothing but failure. The practice of making a successful business plan can ensure that you are not falling for these mistakes.
From market demand, sufficient capital, making the perfect team, dealing with competitors, pricing and so many plans should be in your business plans. Understand the market demand and work accordingly with it.
6 . Making a business plan will help you to be alert for different good and bad scenarios. In this way, you can decide which type of business process is suitable for your business.
7 . Business planning will let you know your financial drawbacks. It is not possible to know about your financial budget and financial availability unless you make a business plan. A perfect business plan will assist you to determine budget monitoring, and controlling cash flow. A business plan will determine how much money you need to invest in which sector of your business.
8 . With a business plan you can understand your market and successfully make a marketing plan. Marketing will tell you who your ideal customer or consumers are. Marketing will also tell you how to reach your customers and sell them the goods or service your business is generating.
9 . You can have a good night’s sleep. If you do not have a perfect business plan you will always be under mental pressure. You can not even have patience at work time. So, having a better business plan will ensure your progress without having any stress in life and the workplace.
10 . With a business plan you can easily communicate with stakeholders about your business ideas. The business plan is considered a communication tool if you are looking for investments and funds in your business. You can use this business plan for communicating with the stakeholders about the future goal, and plans. Your plans will give you an identity in front of them that at the age you are in the market.
Writing a business plan doesn’t mean that you are totally successful. Making a business plan means you have become way ahead of other businesses in the market. If you do not have a presentable plan your business will face loss when you are looking for investment.
3 . Business plan in the competitive industrial market of 2022.
In this part, we will discuss why a business plan is a must needed plan for the business of 2022 and later.
2022 is more competitive and challenging for any business. Just a regular business plan will not work now. You need a strategic business plan to stand against your competitors. Your business goals have to be big yet effective.
A successful business plan is a successful road map for your business. According to the Harvard Business Review, we get a clear yet brief idea about the business plan. Entrepreneurs believe that if they make a better mousetrap for their targeted consumers then the business will rock and they will generate profit in no time.
This strategy is good as a theory. But this does not work in real-life business conditions. The market is influenced by the demand of the customer’s needs. So, when you need an investor, they see whether you are planning to go with the asking demand of the market or not. A well-packed business plan will fulfill the demand of the investors.
A proper business plan has better decisions for marketing, proper financial projections, production demands according to the market design, and personnel needs depending on logical and convincing manner.
According to Harvard Business School, there are three major constitutions for writing a proper business plan.
1 . Understanding the market: The marketing plan includes all existing and future clients. You have to know who is your customer and who is your consumer. The customer may not be the consumer all time.
The marketing plan is isolated with the idea of how to manage customers to buy each product you have launched. Making them realize that they need the product. Ensure them that, if they buy your product they will be happy and fulfilled. Who does not want to be happy and fulfilled in the world?
2 . Investor: You may be lacking financial support. So, knowing your investor’s judgment will boost your chance of getting funds for business.
3 . The producer: The underlying and needed technology or creativity to produce the product and the service.
To sum up, most of the business plans are mostly goods and service producer oriented. Which is a big mistake. The businesses deny the importance of the other two major constitutions of making a business plan.
4 . Type of business plan
There are various types of business plans. In this part of the article, we will draw a clear picture with a deep discussion about the type of business plan you can make for your business.
1 . Business Plans for Start-Up: New business needs to have step by step business plans. For each section of the business, they need a perfect plan. Startups need financial support. Potential investors will judge your business plan and then invest. Always give importance to what the market demands.
2 . Internal Business Plans: The internal business has a specific and targeted business plan. From the marketing team to the HR team the team needs a specific business plan. Calculate how much capital is needed for each project of each department.
3 . Strategic Business Plans: The strategy goes to the 50% success of the business. A strategic business plan is for a high-level view of the company’s goals. Depending on business-to-business and market demands, Strategic Business Plans vary. Strategic Business Plans include a perfect business vision, mission statement, definition, and strategy for achieving.
4 . Operations Business Plans: This business plan is connected with the element of the company operation. Operations Business Plans outline the responsibilities of employees.
5 . Feasibility Business Plans: This plan is connected with the product and service you are providing to your clients.
6 . What-if plan: This plan is considered a backup plan when a business has a chance to face possible risks. You have to have a plan for the worst-case scenario. It is such emergency support to the business.
7 . Financial Plan: A financial business plan includes cash flow statements, profit and loss projections, income statements, balance sheets and so on related to financial related issues a company faces.
5 . Steps of making a successful and winning business plan.
In this part of the article, we will discuss the “7-step successful business plan writing strategy“. There is various formate of the business plan. Businesses fall under two basic categories, Traditional business and Startup. Traditional business plans are old-practiced business plans.
So, with much time of practice, these business plans are now common. Yet many updates are coming from time to time. Because the whole business world changes mostly each year or after many certain incidents. We can see there is a noteworthy change in the business world after the covid-19.
Here are 7 steps to write a proper business plan:
- Executive summary
- Products & services
- Market analysis
- Marketing & Sales
- Company organization and management team
- Financial projections
- Appendix
Now let us have a deep discussion about these.
1 . Executive summary:
This part is just an overview of the business. This describes the total work planning in a nutshell from the start to the end. This has to be in a one-page summary. The executive summary has to include what problem you are solving with your goods and service, the complete plan of your financial summary, product service, and target market. Description of your team, and the funding that you need for your business.
It is the summary your investor will see first. In many cases, investors just ask for the executive summary. If investors love what your summary values the investors will surely be open to investing.
2 . Products & services:
This is the topic where real description comes in. Here you will include all the data about the problem you are solving. You will also include the solutions, and how your product or service will be perfect to solve the issue. Describe the problem you are solving.
Add if you have any competitive advantage with your product. Also, add your milestones with your business idea. From previous work records, if you had achieved any key milestones add them also.
3 . Market analysis
Marketing has to be related to potential consumers. You have to show mathematical information, and graphs about your target audience. You have to add a promotional place that will be suitable for your business.
Describe your target market and targeted audience first. Which group of people do you think can be your targeted people? If you have a clear idea about your solid targeted market, it will be easier for your generating sales, and a marketing plan. Explain how your market will grow over time and why your business has the advantage.
4 . Marketing & Sales
Better marketing sales pave toward better sales. Share what is your plan for reaching your target market. Add what type of activity you need to make your business a proper success.
Discuss organized distribution and sales processes for the product. Present a well-described and well-analysed SWOT analysis for your business.
5 . About the management team and employees
For executing a great idea a company needs the best team of a perfect combined workforce. So, in this part of the business plan describe what type of employee you want to hire for your business. And who are your existing members? Who will work on this project?
Highlight the team members by including their bios, and relevant experience like this. Explain why you think the team is right for your project because of their perfect bio and excellent previous job experience in the same field.
6 . Financial project
The financial project is one of the most important chapters. For entrepreneurs, this chapter is always daunting. But nothing to worry about. Business finance is not that difficult for startups. But many entrepreneurs find it difficult on the first try.
Because of what you learned in the business book, you will find these more practical in real-life experience. For financial help, there are many AI-based tools which will manage your work for yourself. Use these tools and resources to build a solid financial plan. A financial plan is divided into many segments, which are :
1 . Projection of sales and revenue
Sales vary from month to month and year to year. Some investors ask for a five-year forecast of sales and revenue. But normally a three to four-year projection is too normal to ask the investor. Investors can even ask for monthly sales and revenue reports. So, prepare to submit these reports.
2 . Profit and loss statements
You have to add an income statement here. Show the profit as income you made throughout your previous record of this business.
3 . Cash flow statement
The work of the Cash flow statement is to keep track of how much cash you have at any given point in the business.
4 . Balance sheet
The balance sheet is considered for the financial health of your company. In a balance sheet, there are estimated assets, liabilities, and equity of the company.
5 . Include optional sections while seeking funding
Explain how you will invest and use your investor’s money. Here investors will want to know about your exit plan. You also have to add any assumptions and important risks that your business may face.
Depending on your assumption of business there is a difference between your success and failure rate in the business you want to start. The more you will minimize your assumptions the more likely there is a chance of success in your business.
7 . Appendix
This part is the perfect chapter to add charts, tables of topics and calculations, definitions, available legal notes, or other critical data related to your business. For example, your business can have a product that has a patent or patent-pending, or a sample illustration of your product. Include this important but big information here.
6 . Important topics to keep in mind about a business plan
In this part of the article, we will talk about some important topics you need to follow after writing a perfect business plan. Here all information is researched-based on popular business farms and from our own experience.
1 . Share your business plan:
There is no benefit to writing a perfect business plan if there is no audience for you to see this business plan. This review will also help you to solve the internal planning problem of your business plan. Learn from others and be the best.
2 . Use the perfect Templet:
Before presenting a business plan be careful you are using a suitable yet eye-catchy, business class level template. It is important because there are too many businesses and too many business plans in the market. So, if you want to stand in the market with your business plan, make your business plan look good.
Remember first people see how the project looks then they will read and many will show interest to work with it.
Keep a short and simple business plan. The longer your business plan will be the more views you will lose. Be focused and write only what is useful and necessary. Talk to the point. Do not make it confusing and ended nowhere.
HOW INVESTORS WILL JUDGE YOUR BUSINESS AT FIRST.
There is a saying in business, “before making a product to sell, see yourself from the point of view of your consumers. If you like what you have made, surely your business will run.”
See yourself from the point of view of the investor. While making the business plan and presenting it before investors ask yourself questions about your business and see if can you ask them properly.
Key questions you can ask and answer by yourself to see whether your business plan is fruitful or not:
1 . What is your actual product?
2 . How will your business make money with the product?
3 . In the market do there is a need for the product and service that you are selling?
4 . If there is a demand you think of finding out, then who are your targeted customers?
5 . Who are your competitors and do you have a chance to stand in the market?
6 . How are you different from your competitors?
7 . If you know your customers, then how will you reach your customers?
8 . What is your marketing plan?
9 . How will you measure your success?
10 . If everything is OK then how will you measure your success?
11 . How long do you think you can stay in the market?
12 . What is your exit plan if the business goes on the wrong path?
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