Would you like to attract new investors to fund your business? This guide will help you write a good business plan report.
A business idea that can true your company into Forbes 500 enterprise will work with more than just an idea. It would help if you did thorough research, described your product and goals, and designed a roadmap for how you want to proceed in the future. All of this could be done using a business plan.
A business plan is a document that comprehensively describes a company’s goals and how to achieve them. It would help if you had a well-written business plan to captivate funding investments.
Here is a step-by-step guide for you to follow to create a winning business plan report that will take your company closer to success.
What is a Business Plan?
A business plan provides a detailed overview of how the business will achieve its goals. It provides a growth roadmap from the perspective of different departments, such as HR and Marketing.
Startups mainly use business plans to outline and familiarise others with their business. It includes their plans for what they do and how they plan on achieving those goals. This extensive document allows startups to gain investments.
However, business plans are used in all levels of business success. It also allows big companies’ stakeholders and executives to stay on one page. It will also enable businesses to track whether they are getting closer to achieving their goals. Therefore, every business should include it.
There are three main things that potential investors are looking for in a business plan.
- Product Market fit: the research done on the market demand for your product and services
- Team efficiency: The expertise and professionalism of the employees
- Scalability: The capacity of growth for your business
When and Why Is There A Need For A Business Plan?
A business plan is required to bring investments for a startup. There is a high chance that investors will only be interested in your business if you have a concrete business plan. A business plan is efficient for two main reasons.
- It keeps your focus entirely on the goal.
- It acts as proof of your research for the investors.
Creating a business plan is helpful when trying to find co-partners and attract skilled professionals to join your startups and new investments.
What Are The Different Types Of A Business Plan?
There are many types of business plans. For effective work, you should know when to use which. A few are described below.
One-Pager Business Plan
A simplified version of the commonly used business plan only includes the most important aspects of your business. As the name suggests, it is often concise to one page. The main goal is to make sure that it is simple and clear, with short paragraphs consisting of 1 to 2 lines only.
A one-pager business plan should include the problem, its solution, the business model with production costs and selling costs, the management team, competitive advantage, required funding, and the financial summary.
Startup Business Plan
A business plan is majorly significant to startups. They need it to showcase their ideas by keeping financial aspects in mind.
A Startup business plan should include a vision statement, a quick overview of the company, a detailed description of the company, Marketing analysis and sales, a service product plan, and financial projections.
Internal Business Plan
An internal business plan outlines the activities within your company. This type of business plan allows you to focus on a specific department.
It should include a mission statement, objectives, general activities, action plans, and sustainability.
Strategic Business Plan
A strategic business plan is a lengthy document that allows you to align the stakeholders with the company’s priorities. It should include the summary, vision statement, overview, core value, analysis of the environment, strategic objectives, and the company’s overall goals.
Feasibility Business Plan
This is a feasibility study revolving around research. Its primary focus is on what your product or service is.
A feasibility business plan includes the market conditions, the product demand, pricing, risks of launching the business, and success profitability.
How To Write An Effective Business Plan?
Now that you know what type of business plan you want to write let’s focus on the key elements of a comprehensive business plan.
Executive summary
It is a quick overview of the document for people who want to go through only some of the document. It should be fascinating enough to attract investors to your product or service. It answers questions such as who you are and what you sell.
Company description
You introduce your company in detail in this part of the business plan. It talks about the company’s structure and the key stakeholders. It further talks about the legal structure, the company’s history, and the overall objectives for your company.
Market opportunity analysis
The market analysis outlines the user personas and the usability of your product. It talks about filling the gaps in already existing products. Depending on the demographic factors, it creates a target market for the product.
Competitive landscape
It provides a detailed overview of the competitive analysis. Create a list of other companies selling similar products and identify the advantages and disadvantages of that product. Add a comparison landscape to show how you distinguish yourself from others.
Target audience
Think about the demographic factors to identify the target market of your product. Make sure to ask yourself about the need and value of the product for users.
Description of the product and service
Write precisely about the life cycle, production process, and benefits your product will bring. It should mention the unique features, benefits, and property rights.
Developing the marketing sales strategy
It is a crucial element in the success of your product. It should include reach, cost, competition, and the implementation of the product.
Logistics and operations plan
Including the Personnel plan, key assets, and information about the suppliers, this section explains exactly how the company intends to operate.
Financial projections
The financial projections section talks in detail about the expected sales, revenue, profit, and expenses, making it one of the most significant parts of the business plan report.
Funding Request
It would help if you were realistic when asking for funding. You have to explain and prove the need for the exact money required for your company. There should be a worst-case and best-case scenario because startups have no history to present.
Compile official documents
The official documents to present to stakeholders should be local permits, legal documents certifications, Intellectual property patents, contracts, etc.
Best Tips To Write A Winning Business Plan Report
You are now ready to write a good business. Before starting, take a look at these tips for writing an exceptional business plan report.
- Try to keep it brief – it should be at most 10 to 20 pages.
- It should be understandable – you should make sections allowing investors to navigate through the different sections easily.
- Keep the financial information maximally concise.
- Make sure to proofread the document and fix any grammatical mistakes present.
- Use a professional layout, as this is the first component that attracts the readers.
Keep these tips in mind and start writing your business plan.
