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A well-written business plan is a roadmap to the success! Read this article, use our step-by-step guide and discover how to write a business plan!

Why You Need a Business Plan

A business plan can make or break your business! Having a strong, well-crafted, and detailed plan will force you to think about your goals and through the validity of the business concept and idea, provide a clear path for the future of your brand, and will give you a better understanding of your budget, marketing and promotional campaigns, and the competition.

Usually, a business plan looks over 3-5 years and includes all of your current and future goals and strategies, methods, and techniques on how to achieve them. If you are looking for investors or you are planning on applying for a loan, the business plan is what is going to help you convince the investors or get that loan.

These are top 3 reasons why every company needs a business plan:

  1. To map the future of your business – By committing your ideas to a paper, you will be able to understand your company better and outline specific actions that need to be taken to develop and improve your business.
  2. To support the development and secure funding – The businesses often seek external investments and funding. All potential lender will require access to your income statements including the loss and the profit statements, together with an up-to-date business plan.

To help manage cash flow – A fundamental requirement

Top 7 Key Elements of a Business Plan

Here are the key elements that you will find in every business plan:

  • Executive Summary – The executive summary usually is 1-2 pages long and includes an overview of your business, your business concept and ideas, ownership structure, key objectives of your business, management team, competitive advantages, target market, marketing strategy, and your financial projections.
  • Business Overview – The business overview should include details about the history of your business, mission and vision, objectives, and the ownership structure.
  • Products/Services – Write about the products or services you are selling and make sure to include benefits, features, competitive advantages. If you are planning on marketing the products or services, you need to explain how and where the products will be presented.
  • Industry Overview – This part is your opportunity to showcase the viability of your business company by talking about the size and development of your industry, how your customers will purchase your products or services, the key markets within your business industry, and which markets you are planning on targeting.
  • business similar to one already existing on the marketing is a better option for you – go for it. It does not mean that it can’t be successful.

  • Marketing Strategy – This is the part where you need to analyze your target market segments, your products’ and services’ unique selling proposition or USP, the competition, and how you intend to differentiate your products or services.
  • Operations Plan – Describe the profile of your management staff, your production plan, your business location and facilities, your human resources plan, and an overview of daily operations.
  • Financial Plan – According to experts, this is the most important part of the business plan. You will need to present 3-years worth of financial statements, including an annual cash flow statements, income statements, monthly cash flow, and pro-forma balance sheets. You need to summarize this information into easy-to-understand points and put them on the cover page for the financial statements. Make sure to include all the assumptions you used in predicting your costs and your revenues.

Keep it as clear and concise as possible. You need 15-25 pages for a professionally-written business plan, as long as the plan contains all important and relevant information.

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