Excellent business plan is the backbone of every industry: micro, small, medium and large. To ensure success, all business plans must be based on bare facts, not imaginary forecasts or misunderstandings of general market conditions.
A good business plan will benefit not only all owners and employees but also employees and customers.
The golden rule of excellent business plan
The golden rule of drawing a good excellent business plan is to procure all the necessary data. William A. Saalman, an American academic emeritus professor at Harvard Business School, says a great business plan was drawn by answering a few relevant questions.
Sahlman explains that these questions are based on four key elements of the business. People, opportunities, context, and potential for rewards and risks.
Words from Harvard
“What’s wrong with most excellent business plans? The answer is relatively simple. Most people use too much ink on numbers and too much information is really important to intelligent investors Spends.
As every experienced investor knows, financial forecasts for a new company, especially detailed monthly forecasts that last over a year, are acts of imagination.
Entrepreneurial ventures face too many unknown issues to predict income, not to mention profit. In addition, few entrepreneurs correctly predict how much capital and time is needed to achieve their goals.
Usually, they are very optimistic and are filling their expectations. Investors know the padding effect, so discount business plan numbers. ”
William A. Charman, in the widely acclaimed article “How to Write A Great Business Plan”.
Regardless of geographic location, following these basics is essential for any traditional or startup business plan. The guidelines we provide are accepted around the world for a good excellent business plan.
However, there may be some variations depending on the geographic location.
Protect business plan
As a rule, the excellent business plan should be printed on the business stationery. This will increase credibility and give you official document status. Business plans are confidential documents.
Therefore, special precautions must be taken to prevent unauthorized access. If an excellent business plan or any of its components are inadvertently or intentionally leaked, it can have catastrophic effects on the business.
Business plan format
Broadly speaking, there are three main formats for drawing an excellent business plan.
Traditional business plan.
Startup business plan.
Business plans for expansions and new projects.
Depending on your requirements, you can choose between a traditional business plan, a startup business plan, or a business plan for expansion and new projects.
Conventional business plan
Traditional plans are best for existing businesses.
Traditional business plans typically include vision and mission, history, past financial performance, product or service profile, customer portfolio, staffing, and future hiring details, and expected growth in terms of customers and revenue. Many details are included.
Also, consider general market conditions. Forecasts are based on various considerations, including political and economic scenarios and existing and expected competition.
How to make a good excellent business plan
Owners seeking funding for business expansion or new projects can draw on traditional business plans. Here are some guidelines for creating a good excellent business plan.
Some of these factors are common to all excellent business plan: traditional, startup, expansion, and new projects.
Vision and mission statement
These are two separate and distinct statements. The excellent business plan vision statement outlines the goals that the company wants to achieve over the long term.
The vision statement must be written in a clear view of the other elements described below. Also, the mission statement must be calm and state why your company is participating in that particular business.
Be very realistic when writing vision and mission statements. These are the first lines that any company, business stakeholder, treasurer, or investor will read.
The first step to creating a good excellent business plan is to create a detailed profile of your company, whether it’s an existing business, startup, expansion or new business.
Start by writing the appropriate vision and mission statement. It provides detailed information about the products and services your business offers or plans to launch.
Include personal educational qualifications, experience, and expertise in specific business areas. Existing businesses, as well as companies looking to expand or launch new projects, can add details about their leadership team.
For obvious reasons, numbers speak louder than words. Existing businesses and businesses looking for expansion or new projects must have verifiable financial data.
This includes resources, assets, liabilities, taxes, other statutory expenses, salaries, and profits. Include brief financial details.
As an investor, you will definitely have a good knowledge of your business market and position. In addition, all businesses are always informed about the latest market scenarios, events, government policies, and other details that directly impact the business.
Writing these with a good excellent business plan will also help you check the performance of your company. In addition, for those seeking investment and financing, it will impress future financiers.
You can include projected growth and revenue for current and future fiscal years. Make financial forecasts based on your company’s competitive advantage over rivals.
Details of expected growth and how to use it are essential for those seeking funding or external investment. All financial forecasts include expected costs, expected return on investment (ROI), incidental expenses, taxes, and other expenses.
These will be reflected in the projected profits for the current and future fiscal years. If you have a keen knowledge of market scenarios, you can include a 3-5 year forecast.
The US-based Small Business Administration recommends a Small Business Plan that includes a balance sheet and cash flow statement for the last three to five years.
It also requires small business plan authors to include loans and collateral details.
Include details about the number of employees in your organization and their specific roles. Here, William A. Searman’s questions about the people are relevant.
Having a good team and mentioning it in your business plan can also help raise funds as needed.
If you’re a start-up or are considering a new project or expanding your business, tell the finance staff who will lead and the key executive figures. Please provide details such as education and previous experience and the role they should play in your business.
The new excellent business plan must include all compliance documents or details.
This includes licenses procured from authorities such as governments, registrations, tax certificates, members of trade associations and, where applicable, environmental approvals.
Legal compliance is something financers look for before investing in a new business, project, or expansion plan.
Please elaborate on the nature of the product or service offered. Include details about how and where these products are manufactured or the systems used to provide the services.
Add notes about salient features of the product or service. Explicitly state how the product or service helps clients. Businesses that develop new products and services include anticipated launches.
In the case of a new excellent business plan, providing detailed information about a business offer can help you create a good brand image and raise funds as needed.
Marketing and sales strategies
This is inevitable for small business plans and new excellent business plan that include appropriate marketing and sales strategies. In fact, this is the very backbone of the business.
Unlike large business plans, small business plans and new excellent business plan do not have a well-defined marketing and sales strategy.
This has serious disadvantages when seeking funding. In fact, a startup’s business plan must also include appropriate marketing and sales strategies.
Here you can learn about the steps to promote products and services, the effectiveness of these measures, promotion campaigns, and how to adapt your current marketing and sales strategies to future challenges.
Advertising, websites, social media
Obviously, most businesses today have a website. Highlights website features such as online forms that provide business inquiries, customer care, product and service offerings, company news, and other relevant information.
Every business needs advertising. Millions of companies rely on Facebook, Twitter, WhatsApp, Instagram, Pinterest, and LinkedIn as social media has emerged as the preferred media for reaching customers.
An existing business plan can include details about how much the company spends on advertising. Details about where to advertise-Provides newspapers, television, radio, and digital media.
Provide details about the blogs you own, or the blogs where your company, its products or services work.
Startup business plan
Not surprisingly, creating an excellent business plan for a startup requires more research. In fact, most startups are looking for venture capital, crowdfunding, or bank loans as seed money, so they must be very comprehensive.
Or they look for funds to keep the business. Some elements of a traditional business plan can be added, but there are certain details that need to be emphasized.
It is imperative that startup business plans include relevant information from traditional business plans, such as staffing, key staff and leadership, anticipated finance, sales and marketing strategies, and so on.
Contact the appropriate startup incubator to create a business plan and get the results you want.
To be attractive, every startup must be unique. This means that the offerings need to be very different from those available from existing companies and competitors.
After adding mission and vision statements and other relevant details from your traditional business plan, you can talk about why you think your business will be successful.
Startups are generally not operated alone for the first few years. To support your business, you need other businesses, such as suppliers, logistics, warehouses, IT support, and other infrastructure.
Include these strategic partners in your startup, but also detail the role they play in your business.
As mentioned earlier, no one is interested in funding startups that are not clearly competitive in the market. Here you need to include details about why your product or service is better than your competitors.
Add a few lines about the realistic quality assessment of your offering compared to other companies in the same industry.
You may have a good academic background and expertise in the selected startup area. This is one of the resources available unless your self-esteem is exaggerated.
Another important resource that needs to be mentioned in a startup business plan is the expertise brought in by colleagues, partners, or employees.
Physical resources, including funds from savings, can be safely mentioned in startup business plans. It is important to include startup intellectual property rights in your startup business plan because they count as valuable resources.
In short, you can write about all the resources your startup has and make sure you pull them out in the process.
Before launching a startup and creating a business plan, a detailed survey of how the product or service market is shaped, government policies, and insights into future developments is needed.
Create financial indicators based on facts. These include the unique strengths and weaknesses of startups and the expected market share. These financial forecasts must be realistic in order to appeal to treasurers.
The bloated financial forecasts and claims in start-up business plans tend to put off investors as they conduct independent research on the market.
You need to be extra careful when creating this element of your startup business plan. The target customer already has other suppliers who are already prospering in the market.
Talks about the various viable strategies startups are trying to adapt to keep some of their business separate from these established suppliers. Talk about what value you can add to your target customer’s business and life.
Details such as how to deal with customers personally through an agency or online, as well as the customer experience they plan to provide, are also important components that need to be included in this segment of the startup business plan.
This section must provide specific details about how the product or service is provided to the customer.
This section contains details on the products, technologies or technologies to be used for ordering, the systems that help startups provide products or services, and the methods and means employed to notify customers of after-sales service.
In general, all startups use multiple channels, such as personal contacts, email marketing, online orders, and courier services. Include these complex details in your startup business plan.
However, make sure your distribution channels are efficient and cost-effective. Delivery channels often turn out to be expensive, which can undermine the overall profitability of a startup.
Another important component that needs to be included in a startup business plan is the cost of operations. Obviously, even if you intend to put your office at home, you will incur some costs during startup.
Your service delivery channel makes up a great deal of money. All down payments paid to business stakeholders to ensure continuity of supply or service, legality, and other unavoidable expenditures are all in addition to the start-up costs for the launch period and the first year of operation.
It is very easy to articulate what launch and operational costs will be at the start-up phase. However, please keep in mind the unexpected costs while referring to this.
Start-up staffing is something most entrepreneurs overlook when creating a good excellent business plan. Staff salaries and benefits consume a lot of capital.
In addition, treasurers will want to know the abilities of the staff who run your startup. In a sense, they look at academic qualifications, experience, and values that staff can add to your venture.
Whenever possible, include key person resumes in startups, highlighting achievements in previous roles. Also, add a job description and why certain staff members are critical to the success of your startup.
If start-ups can create jobs, state this explicitly, as some governments and sectors provide incentives for job-creating ventures.
According to Forbes reports, 90% of all start-ups have failed for a variety of reasons, including irrelevant to the markets in which they operate, lack of funds, incorrect financial forecasts, and the inability to keep up with technology.
Sustainability is the key to the success of any venture. Finance professionals such as venture capitalists, banks and crowdfunding platforms investigate the sustainability of startups before investing as much as a cent.
Therefore, be sure to include all verifiable reasons that your new excellent business plan may be able to sustain your startup beyond the first year. This allows venture capitalists and other lenders to make a profit by funding your startup.
Expansion & New Project Business Plan
Expansion projects and new projects involve only established businesses. SMEs want to expand their business to maximize profits and strengthen their market position.
Larger organizations, on the other hand, add new projects to diversify their business portfolio. In such cases, they still need to make good excellent business plan.
Reasons for expansion
You will definitely have a real reason for your small business expansion. Please quote these reasons clearly. Talk about the popularity of the product in existing markets and the demand in the areas where you want to venture.
Accurate information about the current situation in these proposed markets is essential to your success and to raise the necessary funds.
Infrastructure for expansion
Unless existing facilities can serve new markets, new infrastructure may be required. More so if you’re thinking of entering a market away from headquarters.
The required infrastructure may include production units, logistic chains, service channels, and people. By properly considering these requirements, you can create a good business plan for expansion.
A new project or business plan for diversification should also mention these relevant details.
It is, of course, important to write about how you intend to fund expansion. Indicates whether an existing business will fund the expansion.
If external financing is required, please specify the components of the extension you are seeking. As part of the expansion, you may need funds to open a manufacturing unit or office.
As mentioned earlier, new projects are part of the diversification of established companies. For example, a skincare major may want to diversify into foods to cash in based on reputation.
Therefore, mention what your new project is and quote the exact reason why you are going to diversify.
Local businesses operating in geographic or business areas that you want to expand are usually established.
The narrow attitude of people also determines the popularity of a particular branded product or service. People tend to be more loyal to local businesses than those with headquarters in remote locations.
Therefore, these unexpected factors often hinder expansion or new projects. Position yourself in an untapped market in your expanded business plans and new project business plans, including ways to avoid such biases.
Business plan template
Hundreds of ready-made business plan templates are available for free downloads from the Internet. With the information you need, you can use it to create a great business plan.
There are no set rules for creating a good business plan. However, your business plan should include the following basics: