Do you need a business plan to start and grow your business? Do you want to know how to write it flawlessly and what are the elements you need to focus on with particular attention?
Perfect, you are in the right place: today I will explain how to write a business plan with a complete guide, deepening the writing process and explaining the main drafting phases.
Remember that a well-made business plan can actually help you achieve your goals, becoming not only a point of reference for you and your collaborators but also a great way to find new investors or help potential investors to better understand your project.
Business Plan what is it?
In its simplest form, a business plan is a guide, a plan that establishes how your business should work and how it could be successful. For most professionals and companies , it contains all the points needed to focus promotion and growth strategies and tactics.
The Business Plan allows you to plan and organize your work in order to have a picture of the activities to be carried out, the roles, responsibilities and costs foreseen for the development of the business, to present yourself to any investors in the simplest and clearest way possible and to participate in any competition notices.
What is a Business Plan for?
How fundamental is it to draw up a business plan? A lot, especially if you are embarking on a company that requires a significant amount of time, money and resources or if you have a company that you have managed for some time.
Obviously you will want to know why you need it. It is soon said:
If you are starting a startup, the business plan helps you to explain what your new company will do, what its objectives are and how it will reach them, how much money is needed to get it off the ground and why you, together with the other founding members, are the people just to make it grow. For a startup, the business plan is also and above all a presentation document, which can convince any lenders to invest.
If you have an established company, the business plan will help you manage and strategically direct the business, taking into account changes in the market, establishing responsibilities, managing resources and setting moments dedicated to revision. Again it serves to attract and convince new investors, of course.
Finally, for all companies, a well-made business plan is a key to innovation and to identify all the strengths and problems. It is used for strategic business planning, which helps you considerably to keep everything that happens under control.
How is a Business Plan composed?
Now that you know what a business plan is for you will definitely want to know how to build one that is perfect, right? Well, then you need to know the individual parts that make up a business plan.
Executive Summary : consists of the presentation of the project and the summary of how the activity will be organized and carried out. It is what will be read before anything else, so it needs special attention, and I will talk about it in detail in the next paragraph.
Sector analysis and market analysis : this is the section of the business plan that describes all the opportunities related to your company and shows the market analyzes, all the data you have collected, the projections, the descriptions and any competitors. I will tell you about it shortly.
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Execution : in this section of your business plan you will have to explain how you intend to seize the opportunities that you have listed in the section “sector analysis and market analysis”. You will need to present your marketing and sales ideas.
Financial forecast : you will need to highlight the key aspects of your financial plan, perhaps with a graph showing the planned sales, expenses and profitability.
Team : Before closing your business plan, give a brief overview of your team and a brief explanation of why you and your employees are the right people to bring your idea to the market.
In general, an appendix or a small summary paragraph containing images is written to conclude a business plan. Started companies can also focus on their history, numbers, results already achieved and the reputation of their brand.
Executive Summary of the Business Plan
Since it has the key role of a ” business card “, it must be clear and well explained. Although it is absolutely the first thing that is read, it is advisable to write it only at the end.
This is because after having drawn up all the other points of your business plan you will have a clear summary to report at the beginning, managing to highlight what is really important.
Be aware that some investors may only ask you for an Executive Summary in order to evaluate your business. If they like what they see in this section of the business plan they will request the rest.
Since this is a fundamental section for the business plan, it must be short, concise and designed not only to be read quickly, but also to be attractive.
It is a good idea to start the Executive Summary with a slogan (do you know what it is? Read Best Advertising Phrases and Advertising Slogans ) with an effect that summarizes the essence of what you are doing and continue indicating what the problems are (or the shortcomings) of the market you want to make up for with your company.
Sector Analysis and Market Analysis
The section “Sector analysis and market analysis” is the second most important after the Executive Summary. This is the space in which you will describe in detail what you, your team and your company want to do.
It is based on the problem / solution principle : in this section you explain what is the market problem you intend to solve and how and how your product / service is unquestionably the solution.
In addition, in this section you indicate who your target is, how your product / service fits into the existing competitive landscape and what distinguishes what you do from what others do.
By presenting the sector analyzes , you will present the sources of profitability of the context in which you intend to operate, defining their quantity, quality, volume and value and explaining how you expect your offers to expand in the future.
You will need to mention the absolute turnover , i.e. the general (often national) turnover concerning the product / service you want to offer, and the average turnover per company, or the average turnover of companies operating in the sector.
How to Make a Real Estate Business Plan
Before concluding this article, let’s do a little study on what the real estate business plan is . The real estate sector is extremely competitive, which is why the business plans that concern it must be drawn up in the most sincere way possible.
Basically everything you enter into this type of business plan, from information to forecasts, should not be inflated even by a comma. This is because unlike other sectors, real estate is much more complex.
You must be as meticulous as possible: any mistake could lead you to make extremely harmful decisions. Consider the strategic choices carefully: do you want to opt for cost leadership (low and competitive costs)? Be careful what the leaks could be and what they could harm.
Enter your mission in your Executive Summary and highlight your strategic advantages. Then, when you talk about spending and earnings forecasts never go beyond 24 months: the real estate market is subject to drastic changes and investors know it well.
Finally, keep an eye on market analysis: it analyzes everything that can, precisely, modify the market, highlighting its risks, and creates objectives that can be organized in chronological order.
Well, we’re done. I hope my guide has been helpful. For any questions, do not hesitate to leave me a comment. And don’t forget to like and share my article!