Many businesses have wrapped up due to the implementation of bad strategies and tactics when they start a business. This is largely due to the lack of a business plan or utilization of a poorly structured business plan.
If you find yourself in this category as a business owner, then you should go through this article.
Writing a business plan involves nine (9) simple steps which are creating a managerial summary, making a description of the company, executing a market examination, making an outline for the industry and management,
stating your services and products, creating a demographic segment, describing your market plan, creating workflows, and then creating a plan on your financial health.
These steps might be difficult to carry out as a beginner which is why we will expatiate further on them in the subsequent paragraphs.
What Is A Business Plan?
A business plan is a written document describing a business and its proposed methods of strategies, services, production, sales, disbursement, regulations, marketing, and building positive customer relationships for the overall success of the business.
How To Write A Business Plan
Create A Managerial Summary
Although this section should come at the end of your business plan, it is important you consider it before writing.
A managerial summary or executive summary tells investors and lenders about your business in a precise and concise manner.
This section is a summary and must be briefly written without the inclusion of any unnecessary stories.
You can include details about the execution of your business, the business objectives and visions, description and differentiation in the products and services, your target audiences,
your current financial health, a prediction of your financial health in the future, the team you are working with, and so. If your company is about to take a loan, you may include the loan amount you need.
Make A Description Of Your Company
This is another important aspect you should include when preparing your business plan. It will describe the overview of the business and also include brief information about the CEO or founder.
In addition, this section simply needs you to answer questions about your goals as the CEO in line with your personality.
Some of the other details entailed in this section are the structure of your business, your industry, vision, mission, the value of the business, the history of the business, and long and short-term goals of your business.
Recommended: How To Choose the Right Business Environment
Execute A Market Examination
Another important step is making research and analysis on the target market you operate on. Taking the right market at the right time will go a long way in your business success.
Additionally, choosing the right audiences that are ready to get your products and understand your services will further help your business succeed overwhelmingly.
This section will entail the calculated value of your chosen market or target audiences, the position of your business in the market, and the details about your competitors.
Make An Outline For Your The Industry And Management
This section involves you bringing into detail the services and fundamentals of everyone running the company. You will discuss the kind of structure you have chosen for your business and how you plan to implement it for your business’s success.
Conversely, you will also include details about the managerial outline which will need you to talk about your team, the roles of team members, and the duties of the team.
Moreover, it is more strategic and professional to make use of a chart to present this information to your audience.
State Your Services And Products
It is important to know that no matter how many times you must have included details about your products or services in your business plan, there is still a need for you to create a section to talk about them.
In that case, this section will need you to talk about your products, manufacturing process, cost, and potential income. Additionally, you should also talk about the products you would love to introduce in the future.
Create A Demographic Segment
This is another neglected but important aspect of a business plan because it will bring out the overview of your target audiences and how they will react to your products.
This section discusses their age, where they live, their level of education, where they work, how they behave in terms of buying products, their beliefs and opinions, their values, and how much they earn.
Additionally, you should also state why you have chosen to focus on particular target audiences and how you place them.
Describe Your Market Plan
This involves describing why you have chosen your business strategies and the advantages and risks of the strategies. You will further discuss your products, the pricing system, marketing techniques, distribution methods, and so on.
Create Workflows
In this section, you will analyze the system of workflow that will lead to the execution of your business ideas. This will look at the methods of carrying out your operations and services.
Nevertheless, you should consider the equipment, suppliers, place, shipping, and inventories when drafting the workflows of your business plan.
Create A Plan For Your Financial Health
Briefly, every business must have a financial plan that will determine its continuity in future years.
However, you might decide to employ three major financial perspectives; the balance sheet, income statement, and cash flow statement.
You must know that nobody would love to work with a business without a financial plan.
Ready to finance your business? Learn about funding a business.
FAQs: What is a business plan?
A business plan is a document describing a business and its plans on how to execute strategies, and services, and how to regulate its financial health for the success of the company.
Name one importance of the business plan?
One importance of a business plan is that it aids in making strategic business decisions.
Which part comes last on a business plan?
The executive summary also known as the managerial summary comes last on a business plan.
Does a business plan show the CEO’s details?
Yes, a business plan should show the CEO details in the section where you make the description of your company.
Important Topics in Business Planning
Finding the right structure for your business idea is the first step toward turning a concept into a reality. Whether you’re a student or an aspiring founder, here is a concise guide to navigating the world of business planning.
1. Business Plan Examples for Students
Student-focused business plans usually prioritize feasibility and scalability on a smaller budget. Popular examples include:
- Service-Based Models: Such as campus tutoring platforms, dorm-room laundry services, or freelance digital marketing agencies.
- Product-Based Models: Like sustainable apparel lines, 3D-printed gadgets, or customized meal-prep kits for peers.
- Tech Solutions: Simple mobile apps that solve local campus issues, like textbook exchanges or study-group finders.These plans are excellent for academic competitions or securing small grants.
2. 10 Types of Business Plans
Different goals require different formats. Here are the ten most common types used in the industry:
- Start-up Business Plan: The classic “from-scratch” blueprint for a new venture.
- Feasibility Business Plan: Used to determine if a specific product or market is viable.
- Internal Business Plan: Focuses on departmental goals and operational shifts.
- Strategic Business Plan: A high-level map of a company’s long-term vision.
- Lean Business Plan: A one-page summary focusing on key “blocks” of the business.
- Operations Business Plan: Details the day-to-day logistics and deadlines.
- Growth Business Plan: Written for expansion or requesting loans for new locations.
- What-If Business Plan: Used for contingency planning and worst-case scenarios.
- Business Model Canvas: A visual chart highlighting value propositions and infrastructure.
- Investor Business Plan: A polished document specifically designed to secure venture capital.
3. How to Write a Business Plan for a Startup
Writing for a startup requires a focus on the problem-solution fit. Start with a compelling Executive Summary that hooks the reader, followed by a Market Analysis that proves there is a demand. Clearly define your Unique Selling Proposition (USP)—what makes you different? Outline your marketing and sales strategy, and wrap up with Financial Projections (usually for the next 3–5 years). Keep it concise; investors often prefer a “Lean” version first before diving into a 40-page document.
4. Traditional Business Plan Template
A traditional plan follows a standardized structure recognized by banks and lenders. Most templates include these core sections:
- Executive Summary: A snapshot of your company.
- Company Description: What you do and who you serve.
- Market Analysis: Industry outlook and competitor research.
- Organization & Management: Your business structure and team bios.
- Service or Product Line: Detailed description of your offerings.
- Marketing & Sales Strategy: How you will attract and retain customers.
- Funding Request: (If applicable) How much capital you need.
- Financial Projections: Balance sheets and income statements.
- Appendix: Supporting documents like patents or permits.
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Conclusion
As it has been stated, a business plan determines the success of a company from the start.
We can also say that a business plan exposes the decision on strategies that prompt structured services and productivity.
You should endeavour to carefully observe these aforementioned processes to develop a good business plan.
Reference
- Business Plan Preparation. Retrieved from here
- Writing a Successful Business Plan: An Overview. Retrieved from here
- How to write an effective business plan. Retrieved from here
- Developing a Conceptual Framework for Business Plan Drafting: Insights from Practitioners. Retrieved from here
- How to Write a Winning Business Plan. Retrieved from here
