Before starting any business, planning is an important process and creating a written business plan is an important part of this process. Business Plan A map of your business is a map or a blueprint that includes general information about your business, business goals, and how to achieve those goals. Business plans not only work as your guide, but are also important for many important tasks like Bank Loan, Startup Funding or Business Partneship.
It is very important to create a business plan for almost all types of business loans, otherwise banks can refuse to give loans.
What is a business plan
Before any work, it is planned. The same thing applies even to Business where the written form of this plan is called Business Plan. Actually the Business Plan is a document that answers all questions like ‘What’, ‘Why’ and ‘How’ of a new business. like :
What is our business? Why do we want to do this business? How will we do this business?
All of these questions are answered by the Business Plan. The Business Plan is primarily for the new business, but any current business is doing something new, even then Business can be made further by creating a Business Plan. Business Plan does not just get Start-up, but also Established Business. Periodically, changes in the business plan can also be made according to the circumstances.
Why Business Plan is Created:
You can imagine what is the need to create a Business Plan. Through its Business Plan, the businessman clearly states what he is planning to achieve his written goals and achieve those goals. Business plans or business plans are very important for the following purposes: –
Applying for a Business Loan in the BankA fund raising in other ways such as Venture Capital Firm or Crowdfunding for your Small Business or Startup Apply for any type of subsidy or any scheme related to Business for Business Partnership and Franchisee etc.
A well-made business plan is not only easy to get funding or finance from the bank and other external sources, but it is also helpful in the internal operations.
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How to Write a Good Business Plan – How To Build A Good Business Plan
Any planning is done very thoughtfully. The same thing applies even when building a Business Plan. Before starting any business, the plan is prepared as a Business Plan. Therefore, a few things are taken care of before creating a good business plan. The major ones are:
What is the Core Objective to build this Business Plan? The Business Plan is being made for the people. Indeed, those who read this are Investors or Bankers who have invested in money business? What is included in your Business Plan? Do you want a brief or detailed Business Plan?
When these questions are answered then a businessman starts making his own business plan. Focus is done on any of the following topics, in a successful and clear Business Plan: –
1. What is the purpose of business – a well-designed Business Plan can tell the objectives of any business. Through this business plan, the businessman has made plans for his future, it is revealed. For these purposes, what will be the benefits to business people, details of which are also carried out from the Business Plan.
2. Describe the clear description of business – Through the Business Plan, the complete description of any business unit is found. Through this Business Plan, another person learns how you started your business and what your purpose is.
3. What are the products and services of a business – When designing a business plan, a businessman can decide what types of products he has to produce and what services he has to offer.
4. Assistant in Market Analysis – When a businessman creates a business plan, he also markets Market Analysis before that. This analysis can only be addressed about future benefits and disadvantages.
5. Description of Business Structure – In any commercial framework, its employee and managerial capacity are identified. Building Business Plan also addresses the business structure.
6. Use of resources – The best means of any business unit is the time spent on it and the businessman. When developing a Business Plan, you will have to decide how to use both of these important resources.
7. Targeting – To make any work successful, it is necessary to determine its goal. When creating a Business Plan, determining business goals becomes simpler.
Business Plan Template in Hindi – Business Plan Template
However, there are no fixed formats of any Business Plan and are made in different ways as per requirement. Typically a Business Plan consists of the following parts: –
Executive Summary – Executive Summary
Executive Summary is the first part of any Business Plan and all the important things related to Business Plan are written as summary. Business Naure, Legal Structure, Product or Services, Target Market, Business Model, Management Team, Marketing Plan, Goals, Financial Projection, Fund or Loan Required etc. are summarized.
Everything else in the business plan is written in this part, so it is better to make the part at the end.
Company or Business Overview – Business Background:
In this part of the Business Plan, all the information related to your business is written in detail such as
The nature of the business What you will sell – Product or Service Description What is your Target Market Legal Structure of Business i.e. Business is a Single, Partnership or Company, Employee and Management Team, Commercial Site
Apart from this, all the things related to the product or services of the business are written in detail in this section such as: –
What problems are being solved from your product or services, or what are these people coming to do? How different is your product or services? Why will people buy your product? How will you create your product and what is the best way to do that? You have registered trademarks of product and services such as Trademark, Patent etc.
Product / Service Description can also be shown in different parts.
Market Analysis – Market Analysis
In this section, all important things related to the Target Market of your product or service are analyzed like: –
Target Market, Market Size and Deemand Who Will Sell You – Target Customer, Their Behavior, Class and Purchasing Power Who are your competitors and how much market share they have, their strengths and weaknesses, important changes in Demand and Market in the future
Marketing Strategy – Market Strategy
This part of the Business Plan is considered very important. This section describes all the policies that you want to use to bring your product and services to the customer and use for Market Promotion. Under this section, you have to determine the following: –
How to make your place in your product or service market Who are your Target Customers who will first show interest in your product or services and how you will reach them. Your pricing policy will be how will you promote your product or service like Direct Marketing, Advertisement Social Media etc. How will you deliver your products or services to the customer – Distribution Chanel What will be your Selling Strategy?
Operations – Methodology
This is an important part in which Business Operations means “business will run”, there are detailed information about all things related to:
Business Place – Where will you do your business? Would you buy or rent a place. Production Facility and System – What kind of production facilities do you have and what is it according to need. Purchase Plan – How would you buy your Inputs and what is the best way to make Production Plan – How will you produce your product? Based on Deemand or Estimates | Workforce Structure and their roles – Your employees’ posts, scope and their responsibilities Systems and Information Technology – The main IT system of your business will be the kind of Store Facility – How much stock will you keep and where.
Financial Analysis – Financial Planning:
Financial Analysis is the most important part of any business plan because this section presents all the important things of your business and the projection in Figures or Numbers. From this part, the bank or venture firm knows the financial position of your business and the need for capital, depending on which banks lend and invest in Venture Capital Firms. This part mainly focuses on the following:
How much capital or fund you need for business and where to use it – Capital / Fund Requirement How you will raise this capital – Loan, Venture Funding, Crowd Funding, Own Capital etc.. What will be the security and how to repay it? What will happen to your business Revenue / Income Sources – Sales, Other Incomes Exepnditure of Your Business – Based on Purchases, Interest Payment, Rent etc. Sales, Revenue and Expenses Years Profit & Loss Forcast Growth ForcastBusiness Risk of Your Business Could potentially result
Important Statements of Financial Analysis / Forcast
Capital Requirement and Sources of CapitalSales Forcast of 3-5 YearsProfit and Loss Forcast of 3-5 YearsCashflow Statement Balance Sheet
Business Plan is the most important document in your business that guides you continuously to pursue your business. Therefore, it should be very careful in its construction.