- August 14, 2018
You stopped by to read this article most probably because you have to make a business plan for yourself or for someone else. How would you feel if I say that what you are going to read is 5 pages long report on how to make a business plan? Will you still be interested in reading this article? Well, I won’t be and nor those who already know how to make a business plan. My point here is that your business plan can be impressive even if it is just one page long.
Your business plan should include all necessary ingredients to pitch to investors. Here are a few ingredients or content that you should not miss to include while making a business plan.
- Problem and Solution: Your business should be an answer to at least one social problem. If not, it should be a solution to a problem faced by business. Describe what you are offering and how it going to solve the problems of people or company.
- Business Model: Once you have drafted the plan what you want to produce or provide and why, the next thing that you need to explain in your business plan is how you are going to raise funds. Money is the backbone of every business. You need to have a reliable source of finance. Your investors and sponsors must be interested in knowing how to plan to raise funds.
- Target Market: You need to define your target market in your business plan. Who will be your customers and how many of them are there. Your market needs to be of a moderate size to start a business.
- Competitive advantage: If you think you don’t have any competitor your business is sure a gold mine, right? Well no. If no one else is doing what you are doing there is surely a reason behind it. May be your business idea failed before you even tried. So it is good idea to evaluate your competitors.
- Management Team: Who all will be there in your management team? Your business plan should provide an insight on the qualification, skills, and experience of each team member of your business who is going to play the lead role.
- Financial Summary: How much assets your company currently has, how much more you may need? These and more such questions are necessary to include in the business plan. If you are keeping your business plan short and precise simply include how much money your company has or lost over the time, what is your sales forecast and what are your long terms financial plans.
- Funding Required: Most business require outside funding and that’s why business plans are created to lure the investors. You can seek funding from venture capital, crowd funding, friends and family. This is the trickiest part as you need to pitch your idea in such a way that it attracts the attention of the investor.
So, these are seven points that you should consider while preparing a business plan.
Geetika Sachdeva is a Post Graduate in Mass Communication and Business Management. She has a work experience of seven plus years in Business Research and Analysis. She continuously blogs about business and media and has authored more than a dozen of eBooks. She is currently working on a book dubbed HRM In Small Businesses.