If you want to learn what a business plan is and how it can help your business grow consistently and predictably, then you’ve come to the right place!
After all, whoever said that being an entrepreneur requires money was completely wrong. This is a myth of entrepreneurship, since having money is useless if you don’t know how to manage it and, when it comes to starting a business, how to plan.
In fact, with a good business plan, the task of seeking financial resources can become much easier.
Therefore, in this article, we’ll show you how to create your business plan and the importance of this document for the success of your venture.
What is a business plan?
A business plan is a document that brings together various pieces of information about your business. This includes the name, product or service definition, legal form, objectives, key performance indicators, financial indicators, and also projections of positive and negative scenarios. Basically, it’s the living answer to the question “What is your business about? “
This reduces risks and uncertainties by phone number database identifying flaws and difficulties during the planning stage, rather than when the business is already operational. In fact, this is one of the advantages of creating a business plan.
In short, a good business plan is descriptive and allows you to identify the strengths and weaknesses of your idea, so you can improve it and transform it into an opportunity.
Why have a business plan?
A study conducted by the Brazilian Micro and Small Business Support Service (Sebrae) mapped the main causes of business failure in their first five years of existence. It found that 55% of entrepreneurs had not developed a business plan.
Obviously, this wasn’t the only factor in business failure, but one of the study’s conclusions was that the chances of success tend to increase with more time invested in planning, so that the entrepreneur understands the market in which they intend to operate.
Creating a business plan brings many the center for additional education benefits. Some of them are:
- You’ll know which investments should be prioritized and where to cut costs.
- If you need external financing, the business plan is on the list of documents required by banks. You’ll already have it ready.
- All the information you need for your business will be organized and easy to access.
- Plus, it will help you communicate better with your partners, customers, and employees.
Now, check out the step-by-step instructions below on how to make a business plan !
Create a draft of your business plan
The first step is to draft your business plan . This will give you a better understanding of the areas that will need to be addressed in the plan, such as:
- Executive summary
- Market analysis
- Concept and brand attributes
- Financial analysis
Leave room for the company’s goal
The business objective is a condensed version of the entire plan and, although it’s the last item you’ll write , it should be the first chapter of your business plan.
It’s important because it provides an overview of the venture. If you want to attract investors or obtain a loan , the summary puts the key information front and center.
The executive summary must describe:
- The concept and style of your business
- What will you offer fax list differently to your customers?
- What is the essence of the brand
- What are your marketing plans?
Overall, you should provide an overview of the current market and how your business will position itself in relation to future trends. It’s also helpful to provide an idea of the investments required for the project and some long-term projections.
Research the market and the competition
The goal here is to demonstrate that you have a differentiated concept in your chosen segment and that your idea is promising. Remember that being innovative and creative isn’t enough; your project needs to be viable and have support to be realized.
For example, let’s imagine you want to start an online business . Market and competitor research will allow you to discover whether your product sparks interest. Or, if there isn’t already a company very similar to yours with an established presence in the market. This aspect alone demonstrates that it will be necessary to invest more, both in the product or service’s uniqueness and in its promotion.
You can be sure that during your market research, excellent ideas will emerge to incorporate into your business model . Carry out this stage with full attention and jot down any new inspirations that come to mind.
Defines the concept and attributes of the brand
Now is the time to better describe your business concept, what sets it apart from the competition, what your product or service line will be like, the decor, and the overall design of the project.
Keep in mind that your brand needs to stand out from the competition, having its own identity that helps convey the soul of your project. All of this is defined when creating a good brand architecture. To do this, start by defining your positioning, what you will do differently in your market .
These definitions will help you with many of the decisions you’ll need to make regarding marketing, interior design, and other aspects of your business.
It’s also recommended that you start thinking about a name for your business. Once you’ve decided on one, verify it and secure a domain for your website .
You can register your domain here on the HostGator website . It’s a very simple process that requires minimal investment.
Do a financial analysis
Without a doubt, this is one of the most important stages in creating a business plan. If the concept isn’t financially viable, the other areas won’t exist.
Unfortunately, it’s at this stage that many businesses fail due to a lack of expense and/or capital forecasting . Effective cost estimation helps you avoid the risk of experiencing this problem.
