How to create a business plan: How to create a business plan for your idea

Do you have a brillant idea? Want to turn it into a profitable business? Don't know where to start from? How about you create a business plan for yourself? A business plan is similar to a roadmap for entrepreneurs. Read on to find out all you need to know to set your business on the right foot.

Why do you need to know how to write a business plan? I call it the road map to a successful business venture. This outlines your goals, mission, key activities of your company and helps keeps you on track  with your eyes on the prize.

There’s a trend nowadays, which I call, “the entrepreneur”. I find joy whenever I see people, especially young adults trying to get themselves out of the salaried lifestyle. But to my dismay, despite the great innovate ideas they had, they fail to build it into something substantial. I believe, failure to structure a plan for their business could be a contributing factor.

Actually there’s no right or wrong business plan; the important aspect is that it meets your goals. You can start simple, and add up as your company grows. Don’t bother yourself too much with things that you don’t need at the moment; e.g. don’t bother writing an exit strategy if you aren’t writing for outside investors.

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There are two common types of business plan;

• Traditional business plan: this is a detailed and comprehensive plan. They follow a standard structure and tend to be several pages long. This is the business plan, requested by banks and investors.
• Lean startup business plan: basically, these could be said to be a summary of a traditional business plan. They also have a standard structure but its focus is on only key points of your plan. Usually written within an hour on a single page.

 

COST OF WRITING A BUSINESS PLAN FOR YOUR IDEA

Writing a business plan on your own should cost you less to nothing. But some people may find difficulty writing one and they would opt for a professional business writer. The fees of a professional business plan writer will depend on the type of business plan you need.

DURATION FOR WRITING A BUSINESS PLAN FOR YOUR IDEA

A traditional business plan could take several hours, day, weeks or even months. Whilst a lean startup plan could take just an hour.

TOOLS NEEDED WHEN WRITING A BUSINESS PLAN FOR YOUR IDEA

• Stationery
• Computer/laptop

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SUPPLIES NEEDED WHEN WRITING A BUSINESS PLAN FOR YOUR IDEA

• Idea
• Your preferred business plan format

 

STEPS FOR WRITING A BUSINESS PLAN

The key to writing the best business plan is to choose the format that suits you.

Traditional business plan format

• Executive summary: a brief summary about your company. Its vision, mission and goals. Structures and financial growth plans.
• Company description: A detailed description about the problems you hope to solve. Be specific in your description.
• Market analysis: this a detailed analysis of the market you are entering. Including your SWOT and PEST analysis.
• Management and organisation: This entails detailed information about the structures in your organisation, including all legalities.
• Service or product line: this is a detailed description about your products or services you wish to offer.
• Marketing and sales: state your marketing and sales strategy
• Funding: detail how much funding you will need over a period of time and where you aim to source from.
• Financial projections: Give an account of how much growth you expect in a number of years. For already established businesses, you should include financial documentations like, balance sheets, income statements etc.
• Appendix: this is where you attach other relevant documents not stated above. E.g. resume, permits, product pictures etc.

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Lean startup plan format

• Key partnerships: this talks about your suppliers, manufactures etc. The various business you will work with.
• Key activities: talk about the things your company would do differently from your competitors.
• Key resource: list your resources which you are going to use to create value for your consumers, as well as leverage.
• Value preposition: talk about your unique selling preposition.
• Customer relations:  this is where you describe the relationship between you and your customers. And how you intend to manage it.
• Customer segments: Name your target markets. Be specific about who you will sell to.
• Channels: How would you reach your customers
• Cost structure: talks about how you will tackle your cost using strategies etc.
• Revenue streams: This tells how your company will make money.

Do you have a brillant idea? Want to turn it into a profitable business? Don't know where to start from? How about you create a business plan for yourself? A business plan is similar to a roadmap for entrepreneurs. Read on to find out all you need to know to set your business on the right foot. Read Full Story