In this article we will see together how to make an effective business plan in 10 steps :
- from the analysis of the business idea
- to the study of your target market
- organizational and financial aspects
- And much more…
All the necessary information that must be put in black and white in any example of an effective business plan.
Now maybe you’re wondering…
But what is a business plan for?
How to make an effective business plan
First of all, making a business plan will allow you to have a precise scheme to follow in order to always know what are the aspects to be addressed and kept under control in order to realize your business idea.
Creating a business plan will help you share your project with any partners and collaborators and if you have to submit it to funders.
Along the way, you can then monitor the progress of the activity by comparing it with your initial forecasts and modify them based on what will be giving results different from expectations.
In a nutshell: learning how to make an effective business plan is the first big step towards the success of your future business.
Making a business plan will allow you to carry out a concrete project to develop your business idea and possibly also to obtain financing from banks or potential investors.
If you want to know more, also read the article on how to obtain non-repayable loans for your business.
But creating a business plan definitely requires analysis and commitment, as well as of course, read this article all the way!
How to make a business plan in 10 steps
Let’s now see all the steps necessary to achieve a good business plan , that is the fundamental document at the basis of the success of any type of business startup.
We will deal with how to make a simple business plan that really helps you to make a good project for your business.
To make a winning business plan, your project must be as clear and simple as possible.
This will help you both in its realization and eventually to obtain financing or to present it to potential investor members.
In your example of a business plan, first you will have to indicate the mission of your company and accurately describe your business idea.
Next you will need to do an analysis of your target market, indicate the chosen legal form for your company and present the business team and the organizational model.
Then it will be the turn of the products and services offered, of the marketing and commercial strategies that you will use to promote your business and finally of the economic and financial analysis of the first years of operation.
At these points it is always good to add the so-called “no disclosure agreement”, which is a confidentiality agreement to which the people who will view your business plan are committed.
Finally, you must also include the “executive summary”, which is basically a summary of the main contents covered in the document.
But now let’s get to the action and see them immediately in detail point by point…
- Mission of the company
In which sector do you want to operate with your company?
What is the “mission” (Who are we? What do we want to do? Why do we do it?) That you intend to develop with it in the immediate and in the near future?
This point must be descriptive but concise; it must not go into too much detail.
It may also include the description of the “vision”, which represents the long-term strategy, and the corporate values or principles and rules to be inspired by.
- No Disclosure Agreement
As I have already told you, this term means a confidentiality agreement that the parties undertake to respect on pain of violation of the agreement.
What is it for?
It will be useful when you find yourself submitting your project to any collaborators or investors, in order to avoid the dissemination of news that could affect your business.
Particularly important if the latter provides for the use of inventions not yet subject to a patent.
- Executive Summary
It is the summary of the main points of your business plan, with particular attention to the mission, growth objectives and expected financial results.
To these can be added a fourth containing the requests to be addressed to any partners (lenders, banks, suppliers) and the arguments in support of why these requests should be accepted.
The Executive Summary can therefore be different depending on the interlocutor you are addressing.
- Description of the business idea
- To who?
These are the questions you need to answer to describe your business idea.
Remember that to be successful, an entrepreneurial idea must always correspond to a need, whether real or created ad hoc through persuasive tools.
What need (s) does your company respond to?
- Analysis of the target market
This is a central aspect of the business plan and deserves you to go into it in a particular way.
It is a question of understanding whether the product or service you want to offer with your company (offer) meets the request (demand) of a certain number of potential customers.
But that’s not enough.
Because other companies besides yours may offer similar products or services.
These companies are your competitors and you need to analyze them well to understand how you can differentiate yourself to challenge their competition.
Based on market analysis, you can ask yourself: what are the threats that put my business at risk? What are my strengths to resist these threats? What are the weaknesses that I need to reduce or eliminate?
- The company and its legal form
At this point your business plan is taking shape.
There is the business idea, you know where to position yourself on the market with your product because you understand what the needs it can satisfy are.
Well, the time has come to understand what kind of business you are going to set up.
But how do you decide?
It is certainly not a simple choice, because the consequences of a wrong decision can negatively affect your business.
If you don’t feel like taking a risk, I suggest you contact a good accountant, who will be able to advise you for the best by assessing your personal inclinations and financial resources.
- The entrepreneurial team and the organizational model
Maybe you want to do your own business.
But it may be that you are thinking of partnering with someone, to share economic costs and effort.
It is a choice to be made very carefully: do you know how many companies go bankrupt because the members don’t get along?
On the other hand, it is also true that a good partner can be an important support, especially if your skills and competences are complementary.
In creating a business plan it is important to specify what contribution each individual member can make to the company.
It is also fundamental for the proper functioning of the business to put their respective roles and duties in black and white, specifying in detail the “who does what”.
- The products and services offered
What distinguishes your product from all others? This is the fundamental question to ask, after identifying the need or needs to which it responds.
Why is it essential? Because it is this distinction that makes it unique and therefore desirable in the eyes of your potential customers.
It can be the quality, or the price, or the innovation compared to other similar products already on the market. The important thing is that what sets it apart is clear to you and your buyers.
- Marketing and commercial strategies
“Selling” is the imperative of every business. You can have the product you think is the best of all, but if you can’t market it, your company has no reason to exist.
How to do? It is necessary to develop real sales strategies and a commercial plan, tailored according to the type of customer.
E-commerce (online sales) can be good for a young or highly educated clientele, certainly not for people of advanced age and who do not use technologies.
And how do you think to make your product known?
Read also: auditors in Dubai
The answer to the questions will be all the more effective the more you have accumulated knowledge on the characteristics and expectations of your customers.
- Economic and financial analysis
This is a very important point.
But defining a company’s income statement plan for the first three years is not easy.
It is necessary to calculate the financial objectives and to unravel between different items (turnover, profit, depreciation) whose knowledge and understanding is not for everyone.
Then you will have to take into account all the start-up costs of your business:
- costs for red tape
- costs for legal and tax advice
- costs for renting or buying premises
- costs for renovation of rooms and furnishings
- costs for machinery necessary for production
- costs for strategic planning
And you will also need to calculate the running costs of your business:
- staff Price
- cost of renting the premises
- cost of utilities
- cost of raw materials
- cost of maintenance of premises and machinery
- cost of
If there is no economic-financial training in your curriculum, the advice, even in this case, immediately download an effective business plan .
Winning business plan example: conclusions
If you have read this article completely, it means that you are taking your business idea seriously.
You have already shown that you have the perseverance and will necessary to carry out your business …
Now please don’t fall into the most classic of pitfalls and keep looking for random information on the internet!
Your business idea deserves the utmost respect and only with a well-structured plan can you achieve it successfully.
Now it’s only up to you!
If you are serious and want to start a successful business, do not miss my advanced guides to create a business plan for your business.
At the end of the course you will know exactly:
- how to make a business plan for start ups
- how to make a business plan for a store
- how to make a business plan for a restaurant or a pizzeria
- how to make a bar business plan
- how to make a business plan for an e-commerce
- how to make a business plan for a farmhouse or a b & b
- how to make a business plan for a farm
- and much more…