A business plan is a blueprint of your business. It is a detailed and comprehensive outline of your mission, goals, demographic analysis, marketing strategy, budget as well as operational requirements and future plans. A business plan should ideally be done before you put a lot of money into starting your business and reviewed regularly when running your company.
While there are many different business plan templates available, all of the templates have sections that are the same. These areas include:
Business Description and Mission
In this area, you will describe the type of business you are planning to open. Here you will explain the purpose and mission of your business both now and in the future. This is a great place to also mention any industry information that can impact your business positively or negatively both now and in the future.
Competitors
It is important before starting a business to find out who your competition is in your target area and defining what makes you different from them. What makes your business stand out from the other similar businesses or services? What do you have to offer that they don't? Analyzing the competition beforehand will help you determine a need for your services.
Marketing Plan
This section will help you plot how you are going to let your target market know about your company. Marketing is ongoing and crucial to the success of an entrepreneurial venture. Your customers are not going to know you exist unless you tell them. This is the time to research various marketing methods, the costs associated with marketing your services as well as the best ways to get your target clientele's attention. A well researched and designed marketing plan can have a significant impact on the success or failure of a business.
Daily Operations and Business Management
This is a detailed section that outlines the daily operations, or running of your business. You need to plan and organize how you are going to run your company and handle the management of your services before you start. Being organized is essential for all daily, weekly and monthly functions of your vocation.
Financial Operations
In this section, you will determine how much money you have as well as how much money you will need to start your independent career. You will also assess how much money you need professionally and personally to manage your expenses. If you have to take out a loan to start your business, how will you earn enough to pay it back plus make a profit? This section will thoroughly cover all money areas of your professional and private livelihood.
Executive Summary
This section is usually the last area of the plan to be written. It is a summary of your company and the goals you have set. This section tells the reader what you want professionally. It will summarize all of the sections that you have written and will give the reader a clear insight of your services now and in the future. The executive summary is usually at least 2 pages in length and follows the title page of your business.
Business plans are very useful tools when starting your own business. By writing a a well researched plan, you will have clear knowledge and an understanding of what is needed to operate and needs of your business now and in the future. The more researched and professional a business plan is, the more likely other business owners and lending institutions will take you seriously. Developing a well researched and clearly outlined business plan will make you look like a professional business owner and will help greatly if you have to borrow money to start your business.